Decentralized exchange DODO is tweaking its token model for the upcoming version two upgrade in order to offer more incentives to liquidity providers.
DODO is an Ethereum-based on-chain automated market maker (AMM) that was announced in mid-August 2020. It claims to be more advanced than regular decentralized exchanges, such as Uniswap, as it can respond to changing markets and liquidity constraints in real-time.
With the upgrade, there will be three separate categories of DODO platform users, comprised of traders, liquidity pool creators, and liquidity providers. The token economy design will therefore be upgraded accordingly to engage these user groups and make the platform work for all, the blog post added.
🥁 Drum roll please folks…!@BreederDodo is extremely proud to release our 'DODOnomics'! 🔥
All you need to know about the $DODO token is now out! You don't want to miss this one 👀
— DODO DEX (@BreederDodo) February 10, 2021
All About the ‘DODOnomics’
The announcement stated that besides governance, DODO tokens will have new utilities for holders which include “Crowdpooling” and IDO (Initial DEX Offering) allocations and trading fee discounts on the exchange.
A non-transferable vDODO token will be introduced to serve as proof of membership in DODO’s loyalty program, and these can be minted at a fixed rate of 1 vDODO = 100 DODO. The new tokens will give holders dividends from trading fees and membership rewards, in addition to the same benefits of holding DODO tokens, it added.
There will be a variable exit fee for redeeming vDODO to DODO in order to encourage long term loyalty to the project, and more liquidity-providing incentives will be rolled out with something called Combiner Harvest mining.
DODO co-founder Diane Dai stated;
“A crypto project without a sound and sustainable tokenomics is, in our opinion, “soulless”, because tokens serve two crucial primary functions: value encapsulation and growth incentivization.”
While managing partner at Puzzle Ventures, Jerry Zhou, added;
“In my opinion, DODOnomics v2 is the most successful design in the DEX area. The DODO token will effectively capture the value of the DODO exchange.”
60% of the DODO total token supply is reserved for the community, and there are currently 54 million out of a total of a billion tokens circulating, according to Coingecko.
There was no mention of an expected date for the v2 launch.
DODO Price Hits ATH
DODO token prices have skyrocketed 40% over the past 24 hours to reach an all-time high of $2.50 before falling back to trade at $2.19 at the time of publication.
Over the past thirty days, the Chinese DEX token has made a monumental 700%, and it was trading at just $0.16 at the beginning of this year.
In terms of total value locked, DeFi Pulse is reporting around $22 million, which ranks the DEX at thirty-eighth in its TVL listings.
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