Secret DeFi has announced the launch details of the native governance token – SEFI – for its network that focuses on privacy for decentralized finance (DeFi). SEFI will launch on March 31st, 2021.
Announcing the launch date for the Secret DeFi token (SEFI) via an official blog post, the network noted that the token will enable users to govern parts of the Secret DeFi ecosystem in a decentralized fashion.
NEW Update! 🚨$SEFI, native governance token for Secret DeFi, now has a genesis date: March 31st, 2021.
— 𝕊ecret Network (@SecretNetwork) March 17, 2021
According to the announcement, once launched, the SEFI token will focus on the governance of SecretSwap, the first cross-chain, front-running resistant decentralized exchange. SecretSwap was launched on the Secret Network mainnet back in February.
Additionally, the protocol noted that the expected token will be different from SCRT, the already existing Secret Network token. SCRT is currently used for all network fees, staking, and on-chain governance of the protocol. Secret Network explained that SCRT is for the governance of Secret Network mainly and not for applications built on the network. This relationship between SCRT and Secret Network is like the relationship between ETH and Ethereum.
In a matter akin to Ethereum having ERC-20 tokens (a fungible token standard for Ethereum), Secret Network has secret tokens (SNIP-20 tokens that are a fungible token standard for the platform). The result is that secret tokens are versatile in that they can represent many different types of assets and have different types of functionality, just like ERC-20 tokens.
Also, it is important to note that the SCRT token itself is not a privacy coin (its use is transparent on-chain) but secret tokens are privacy-preserving. Also, SecretSwap uses the SNIP-20 secret token standard and Secret Ethereum bridge.
The announcement notes that SEFI is a secret token on the Secret Network that is also bridged to Ethereum. Basically, the SEFI token is similar to SUSHI for SushiSwap and UNI for Uniswap.
The basis use of SEFI is for letting users govern areas of the Secret DeFi ecosystem in a decentralized fashion. Various aspects that the community can use the SEFI token to govern include spending the SEFI development pool and introducing additional products into Secret Finance that use the SEFI token.
Other governable aspects that the SEFI token can be used for include joining other communities (such as enabling joint liquidity mining programs), determining the pools that are eligible for user rewards, and paying SecretSwap fees.
The announcement further revealed that the Secret DeFi token (SEFI) would be distributed in a fair and broad manner to existing SecretSwap users, as well as other prominent communities across Ethereum and Secret Network.
The protocol noted that the distribution will be based on previous activity and recent snapshots that are curated by members of the Secret community. The snapshots will be taken at unannounced times to ensure there is no gaming of the token distribution.
10% of the SEFI tokens will be distributed at launch. As for the remaining 90%, those tokens will be allocated over a period of four years. The rewards will halve every year.
The protocol noted that, after the launch, SEFI will also be allotted as rewards for providing liquidity and transaction volume on SecretSwap. The token would also be used for providing liquidity to WSCRT and SEFI pools on other DEXes of note on other chains, such as Uniswap and SushiSwap.
Reacting to the announcement, via his official Twitter account, Secret Foundation’s executive director and chairman, Tor Bair, said, “The application layer on Secret Network is now fully emerging.”
According to him, “Programmable privacy for #DeFi, #NFTs, and more. All secured by the only layer 1 blockchain with privacy-preserving smart contracts. Stay tuned 🤫.”
The application layer on @SecretNetwork is now fully emerging.
Stay tuned 🤫 https://t.co/ZAaEvelLNY
— Tor Bair – Keeper of SeCReTs 🤫 (@TorBair) March 17, 2021
At the time of writing, Secret (SCRT) price has fallen by 4.9% in the last 24 hours. The token was trading at $3.02, with a market cap of $211,383,367 and a 24-hour trading volume of $3,054,456. SCRT currently has a circulating supply of 69.7 million coins and a max supply of 179.3 million coins.
For a more in-depth review on SecretSwap and to find out how to privately swap secret tokens, check out the Altcoin Buzz review.
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