In the previous article , we have provided an introduction to Dexpad, the initial token distribution at launch, and an overview of the relation between Dexpad and Photonswap. In this article we will provide a comprehensive overview of the tokenomics of the DXP platform, and the economic integrations of Dexpad & Photonswap. For a condensed overview of Dexpad and the tokenomics of the project read the article published by The Cronicle
Overview DXP token
The DXP token lies at the very core of and will be powering the Dexpad ecosystem, the DXP token will have several use cases within the ecosystem:
Participating in IDO’s: Investors that want to participate in the projects listed on the Dexpad launchpad are required to stake or lock DXP tokens, the more DXP tokens you commit the bigger your allocation in our Initial Dexpad Offerings.
Profit Sharing: (locked) stakers of DXP will share in the profits of Dexpad. Projects launching on Dexpad pay 2% of their token supply to use the Dexpad Launchpad, which are fully distributed to locked stakers! Projects also pay a 2% fee in native currency(i.e BNB, ETH etc) over the amount raised during the sale. This fee will be used by Dexpad to buyback it’s token from Photonswap and burn these tokens; taking them out of circulation for ever!
Forging partnerships (15%): Building great partnerships and gaining exposure is important for any launchpad. To achieve this we have set aside 15% of the total supply of DxP. These tokens could be used to set-up marketing campaigns, incentivise liquidity-providers of projects we love and attract new users to the platform.
Liquidity incentives: To reward the people, who are providing liquidity for Dexpad and Photonswap, liquidity incentives will be provided to ensure sufficient liquidity which allows traders to buy (and sell) DXP without having to deal with high slippage.
Dexpad <> Photonswap partnership & treasury (25%): A sizable chunk of the DXP tokens have been reserved to accommodate the partnership of Photonswap & Dexpad. A portion of the tokens will be used to accommodate cross-staking initiatives, another portion will be available to incentivise projects launching on Dexpad. be reserved to use for features that will be launched in the future. The remaining tokens will be allocated to a treasury, the treasury will be used to fund the Dexpad DAO (DD). The dao will coöperate with the Dexpad team to decide how these funds should be allocated.
Airdrop: To grow our community and reward (early) users, 2% of the total supply is allocated for airdrops. So far participants of our (closed) gleam competition will receive an airdrop with more information regarding the airdrop to be released in the couple of weeks. The remaining funds will also be airdropped to users of users of selected partner projects.
Vesting & Locked Liquidity
To ensure the long term sustainability of the project the team has committed to provide a substantial amount of the funds raised during the private sale as launch liquidity. Of the $400.000USD raised, 200.000USD will be used to provide liquidity for Dexpad & 50,000 for Photonswap, with the liquidity being locked for two years.
In addition to the five year lock early investors will also vest over a long period of time. Angel/seed investors lock their tokens for two years while the team starts unlocking their tokens after 6 months. For a more detailed overview of the vesting schedule, consult the table below.
Photonswap: the perfect DEX for Dexpad
In the journey of designing the perfect Launchpad we concluded that a good Launchpad requires integration with a great exchange, to ensure a secure transition from the sale contract to the liquidity pool after the token-sale has concluded. In a perfect world liquidity would be automatically locked after a sale concludes. This turned out to be especially important in the Cronos ecosystem, because in the young Cronos ecosystem a dex with a strong reputation has not been developed yet. Therefore we decided to acquire a DEX, to ensure a perfect integration with the Dexpad launchpad.
One month ago we acquired Photonswap and started integrating the DEX, and the Photon token into our ecosystem. In the subsequent weeks we worked on the integration of the two platforms and developed our auto-lock contract, a contract that allows for the automatic locking of liquidity once the sale of a project ends, with the liquidity being locked on the Photonswap DEX.
To ensure a successful intergration of Photonswap and Dexpad, the tokenomics of the projects have to be aligned to benefit holders of Photonswap, and holders of Dexpad. Therefore several features have been included to accomplish this goal. The graphic below provides a schematic overview of the integrations of Photonswap and Dexpad. It also provides a visualisation of the process of launching a project on Dexpad, and launching the liquidity on Photonswap.
Token distribution and emission Photonswap
The Photon token is the native token on the Automated Market Maker Photonswap (AMM). The goal of Photonswap is to accumulate liquidity so that trades can be made decentralized on the Cronos ecosystem with little price impact. To be as fair as possible and give everyone the chance to participate the team has opted to do no pre-sale at all and do a fairlaunch by adding liquidity on the AMM for the pair PS:CRO and locking these LP tokens for five years.
Early contributors to Dexpad are rewarded for their participation and early participation through an airdrop (2%) that will be distributed linearly over a timeframe of 4 months.
To allow Photonswap to forge partnerships, 21.5% of the total supply has been set aside to incentivise future partnerships with ecosystem partners, potential exchanges and promising projects launching on Dexpad.
Finally there is a special 2 year lock staking contract on Dexpad to reward long term supporters of the project for locking their tokens for 2 years with the Photon token. This pool will distribute Photon rewards to the seed-investors that locked their tokens for two years, and users that deposit their DXP tokens into the contract in the first month after the release of the pool
The remaining 55% of the token supply is used to incentivize participants to add liquidity on incentivized farming pairs. Emission for block rewards is modelled in such a way that early on the rewards are highest, and thereafter declining steadily until after 58 months 99.9% of the 55.000.000 tokens have been distributed.
In the following section we will explain the tokenomics as depicted above. In the first section We will provide an overview of the journey of a new project launching on Dexpad, and how this will benefit Dexpad stakers. In the following section we will explain how the tokens that are sold in the Dexpad sale are transferred to Photonswap and benefit Photonswap holders.
The Journey of projectX (PjX)
ProjectX has decided to launch their PjX token on the Dexpad launchpad(1). They have decided to raise 100.000$ in USDT. PjX has submitted their project to the Dexpad launchpad and has passed the automatic honeypot-check, so they are ready to start raising funds. Every participant that has staked their DXP token will get an allocation for the sale of PjX token. Based on the amount of DXP tokens people stake, and the time the tokens are staked for the more Participation Points (PP) people will receive.
How much are you allowed to invest ?
The calculation of the allocation per participant is calculated by calculating the PP per participant. Afterwards the total amount of PP is calculated by adding all individual PP scores together, and dividing the individual iPP by the total amount of tPP, resulting in your share of Participation points (sPP). Your sPP is then multiplied by the total amount that is being raised to calculate your max commitment for the project.
One week after the sale has started, 90% of the tokens have been sold. The remaining tokens are sold, and everyone is able to buy these tokens until they are sold out. Once the remaining tokens sell out a tax of 2% is levied, on the PjX token AND the raised USDT, and transfered to the DXP treasury. the remaining tokens are:
1) automatically transfered to a Locker on DexPad. Minimum 50 % of fund raised in sale will be automatically locked for at least one month. This ensures the safe transfer of the funds to a liquidity pool, so participants are able to buy and sell the token !
2) The remaining USDT and Pjx tokens will be transferred to the ProjectX team.
What happens with the fees ?
As explained in the previous section the sale of ProjectX was taxed with a 2% fee on the PjX token sold, and the USDT raised.
1)The USDT that has been raised by the project will be transferred to the treasury, and used to buy back and burn DXP tokens. Therefore reducing the total supply of DXP and making it deflationary.
2)The PjX tokens that have been collected will be distributed to the stakers of DXP based on your sPP as explained in the previous section.
Liquidity on Photonswap
After a sale has concluded the tokens are officially launched on the Photonswap platform These tokens will be open to trade to everyone. Teams launching on Photonswap will have the opportunity to launch a Syrup pool where stakers of Photon are able to receive PjX token for one month, rewarding Photonswap holders and gaining access to the Photonswap community. Projects that are setting up such a Syrup pool can submit a proposal to the Photonswap team to discuss the options for receiving Photon rewards on their Photon Swap liquidity pair.
AMM swap fees
Swaps on Photonswap will be taxed with a 0.2% swap-fee. 0.1% of this swap fee will be returned to the liquidity pool, rewarding the liquidity providers. The remaining 0.1% will be split between buyback and burns, and used to fund the Photon ‘syrup’ pools.
DXP & Photon cross-staking
To deepen the relation between Photon & DXP there will be staking pools where DXP holders can earn PS, and Photon holders can earn DXP.
1)Earning Photon with DXP: DXP holders that decide to stake their token in the 2 year DXP staking contract receive Photon tokens over the two year period their tokens are locked. 6.7% of the total supply of Photon token will be distributed in this pool over the next two years. Locking tokens for two years will provide all the benefits of the other lock pools (highest allocation in DXP sales & profit share). On top of these rewards stakers in this pool will also receive Photon tokens.
2)Earn DXP with PS: Photon holders will have the opportunity to stake their Photon tokens in the DXP Syrup pool to receive DXP tokens. This syrup pool will be flexible, and allow users to enter or leave the pool whenever they want. This pool will receive 30% of the total liquidity rewards over the next 2 years. DXP will have limited inflation, to enjoy the DXP rewards while they last.