Many have heard about the AMM DEX STON.fi, but not everyone knows its tokenomics, so let’s dive in🔥!
How can the STON token be useful to you💡?
Staking the STON token on STON.fi allows users to create and vote on proposals related to updates of the STON.fi protocol, adding new networks, fee models, and adding or removing assets.The DAO platform is currently in development.For staking, you also receive (instantly) the GEMSTON token . Currently, 21 million STON tokens are staked on STON.fi.
You can also provide liquidity in pairs with the STON token and, if possible, add LP tokens for Farming.
Example: STON/USD₮ STON/TON
Deflationary model of STON token🔥
The initial supply of STON is 100M tokens. The STON token has a deflationary model, limiting its supply to the initial minting, and the STON minter smart contract guarantees that minting of additional tokens in the future is prohibited.
This deflationary model refers to an economic framework where the supply of tokens gradually decreases over time. This reduction in supply is achieved through the buyback and burning of tokens. The buyback process involves converting all protocol fees into STON tokens from the open market. Part of these bought-back tokens is burned, effectively reducing the circulating supply and making the remaining tokens more valuable.
The combination of token buybacks and burning aims to achieve a deflationary effect by reducing the total supply of tokens over time, thereby increasing demand📈.
Protocol Fees💸
Protocol fees are deducted from all trades on the STON.fi DEX. Specific mechanics depend on protocol type (RFQ or AMM) and the blockchains of trade.
STON.fi protocol implements a means to automatically convert all collected fees to STON tokens on TON Blockchain and redistribute them according to DAO decisions. The architecture of fee distribution smart contracts is demonstrated below👇:
The following smart contracts are used for fee distribution📋:
● Fee converter: receives protocol fees in various tokens and converts them to the STON token using RFQ DEX and liquidity pools on STON.fi AMM DEX.
● Fee distributor: collects all fees in the form of STON token on TON Blockchain and distributes them to one or multiple destinations in accordance with DAO-controlled parameters.
● Burn contract: burns all incoming STON tokens thus reducing supply and increasing demand for these tokens.
● Other destinations: The Fee Distributor contract might transfer part of the fees to other smart contracts at DAO discretion effectively allowing to extend the protocol with various mechanics like staking rewards, liquidity mining, etc.
Initial allocation🎯
The initial supply of STON is 100M tokens. It is distributed among all key areas with a main focus on providing tokens to the community via DAO:
● DAO Allocation: 50% of STON tokens. Includes DAO-governed treasury, incentives program, marketing activities, and operations.
● Team & Advisors: 19% of STON tokens. Distributed to founders, team, and advisors.
● Investors: 31% of STON tokens. Distributed to pre-seed investors and private round investors.
STON token vesting⏳
A lock-up is a period of time, when an individual receiving the tokens is not allowed to sell or transfer them. At the end of the lock-up period, the share of tokens specified in the “Initial unlock” column is immediately vested. The remaining tokens are linearly unlocked over the vesting period that starts immediately after the lock-up period.
Distribution
● DAO Treasury — 20M tokens, staked. This is the share provided to cover the initiatives to modernize the protocol. The share is staked for a period of 24 months, after which it can be partially unstaked and used at DAO discretion.
● Incentives — 10M tokens, linear vesting over 5 years. DAO-controlled token pool that can be used to boost protocol usage. Might include referral incentives, liquidity mining, fee compensation and other mechanics at DAO discretion.
● Marketing — 10M tokens, 2M tokens immediately available, 8M tokens are vested over 3 years. Token reserve for marketing activities operated by DAO. Includes airdrops, marketing campaigns, etc.
● Operations — 10M tokens, 4M tokens immediately available, 6M tokens are vested over 5 years. Funding of operational activities for protocol development and maintenance. Includes liquidity provision to CEXs and DEXs.
● Pre seed — 21M tokens, 12-months lock-up and linear vesting over 2 years. The share of STON.fi pre-seed investors.
● Team — 14M tokens, 2-year lock-up and linear vesting over 3 years. The share of STON.fi founders, employees and future employees.
● Private sale — 10M tokens, 1-year lock-up and linear vesting over 2 years. The share of STON.fi private round investors.
Now you know more about the tokenomics of STON.fi🧐!
Read my other articles about STON.fi👇:
STON.fi social networks:
Twitter - @ston_fi Telegram - @stonfidex Reddit - r/STONFi
How to provide liquidity on STON.fi
