Starting from DODO v2, there will be three categories of DODO platform users: traders, liquidity pool creators, and liquidity providers (LPs). DODO’s v1 token economy design will thus be upgraded accordingly to engage these user groups and make the platform work for all.
Today, we are excited to share the details of the new DODO tokenomics, dubbed “ DODOnomics v2 ”.
- Besides governance, DODO tokens will have two new utilities for holders: Crowdpooling and IDO allocations and trading fee discounts on DODO.
- A new, non-transferable vDODO token will be introduced to serve as proof of membership in DODO’s loyalty program.
- vDODO tokens can be minted at a fixed rate of 1 vDODO = 100 DODO .
- vDODO tokens will give holders dividends from trading fees and membership rewards , in addition to the same benefits of holding DODO tokens.
- In order to encourage long-term membership, redeeming vDODO tokens to DODO tokens will incur a variable exit fee .
- Trading mining and combiner harvest will be rolled out to incentivize more interactions with the DODO platform.
DODO and vDODO: Token Utilities and Benefits
The DODO token has been given several important utilities in addition to its governance function. DODO token holders enjoy the following benefits:
- Governance rights: holders can create and vote on proposals; 1 DODO = 1 vote
- Crowdpooling and IDO allocations
- Trading fee discounts
vDODO is a token that serves as a user’s proof of membership in DODO’s loyalty program. Benefits for vDODO token holders include but are not limited to the following:
- Governance rights: holders can create and vote on proposals. 1 vDODO = 100 votes
- Crowdpooling and IDO allocations
- Trading fee discounts
- Dividends paid out from trading fees (exclusive to vDODO token holders): A proportion of the trading fees accrued on the platform will be distributed to vDODO holders
- vDODO membership rewards (exclusive to vDODO token holders): DODO reward tokens will be distributed to vDODO holders every block (see next section)
Minting and Redeeming vDODO
Minting vDODO and Membership Rewards
You can stake 100 DODO tokens to mint one (1) vDODO token. vDODO tokens are NOT transferable . vDODO token holders receive DODO reward tokens. Specifically:
- 6 DODO reward tokens are released and distributed to vDODO holders every block.
- vDODO holders receive DODO reward tokens proportional to their shares of vDODO, i.e. the number of DODO tokens they get is 6 * their vDODO balance / number of vDODO in circulation
- vDODO holders can invite others to mint vDODO tokens using their referral links. The inviter receives a boost to their share in the membership reward system (i.e. akin to their DODO “mining power”) equal to 10% of the invitee’s share in the system. Please note that the invitee’s membership per-block reward rate remains the same, and the overall DODO reward tokens per block is also fixed at 6.
- To encourage early birds to try out the vDODO membership rewards system, there will be 12 DODO reward tokens per block during the first 7 days.
Redeeming vDODO and Exit Fee
In order to redeem vDODO back to DODO tokens, you will need to pay an “exit fee” in vDODO tokens, which will be immediately distributed to all remaining vDODO holders who haven’t exited.
Here, we will introduce a statistical measure called the DODO Loyalty Index (DLI) , defined to be (number of vDODO in circulation * 100) / DODO in circulation. Assuming everything else stays the same, when vDODO gets minted, the number of vDODO in circulation increases, and the DLI increases.
The exit fee structure is that the higher the DLI, the lower the exit fee rate:
- When the DLI is above 0.5, the exit fee is at its minimum of 5%.
- As DLI decreases, the exit fee rate increases.
- When the DLI is less than 0.1, the exit fee is at its maximum of 15%.
More specifically, the exit fee rate formula is:
- If DLI > 0.5, exit fee rate = 0.05
- If DLI < 0.1, exit fee rate = 0.15
- If 0.1 < DLI < 0.5, exit fee rate = 0.175 - 0.25 * DLI
- Note that DLI cannot exceed 0.5, since no DODO would be available to be staked to mint vDODO tokens
This exit fee structure design is similar to Battle Royale and is meant to encourage adopters to stay in the vDODO membership system. The longer a holder holds vDODO tokens, the more vDODO tokens they will get, as others redeem vDODO and pay exit fees.
DODO Community Growth Incentives
Currently, the most important metric for the DODO platform is daily active users (DAUs), and token incentives are an effective way to acquire and appeal to new users. The DODO team has designed the following token incentive programs for DODO users.
Trader Incentives: Trading Mining
Traders will be able to mine DODO tokens by simply making trades on the DODO platform! A trading mining prize pool will be set up and it will receive 3 DODO tokens per block. Individual traders on DODO will have the option to turn on “Trading Mining” mode while executing trades. When a trader has activated Trading Mining, they will receive 1% of the DODO tokens in the prize pool after they have successfully made a trade on app.dodoex.io.
The DODO platform maintains a default token list maintained by the DODO team. If a token in the default token list is labelled as a “hot token”, traders of this token will receive 3 x the rewards, i.e. 3% of the DODO tokens in the prize pool! Which tokens are labelled “hot” will be decided by third-party crypto data aggregators’ trending sections, voting in the DODO community and on social media, and by the DODO team.
Pool Creator & Liquidity Provider Incentives: Combiner Harvest
In order to facilitate community engagement and interactions between various projects and asset issuers, DODO will be rolling out what is known as Combiner Harvest mining.
This program is geared towards providing avenues for DODO platform users to get readily available exposure to trending, promising projects that are willing to collaborate with DODO. Vetted projects can create liquidity pools on DODO and liquidity providers of these pools will receive DODO reward tokens.
Tokens as the Soul of Projects: Value and Growth
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. The DODO team has been designing and will always design future token economy models with these keywords top of mind.
We will be running highly cost-effective incentive programs and initiatives to help facilitate and ensure the continuous growth of the DODO platform and DODO community. In the meantime, the DODO token will be the ideal vehicle for capturing and representing the value of the DODO’s economy and ecosystem, and the collective value of the platform will be shared equitably and generously with our loyal supporters.
As outlined in our DODO token announcement, 60% of the DODO total token supply is reserved for the community. This is a vast number of tokens and it is impossible to plan out all the incentive programs beforehand. As our platform continues to grow in stature and user numbers and more product features mature, the subject of value encapsulation will become increasingly complex and multifaceted. This is why the DODOnomics v2 design is open to constructive suggestions and feedback from everyone, as we seek to grow alongside the community.
Thanks to Eraser Li, Vance Spencer, Roy Learner, Arthur Cheong, Eugin Lee, Tarun Chitra, William Nuelle, Maple Leaf, and Jerry Zhou for their input.
Official Website: https://dodoex.io/
FAQs: DODO V2 | DODO Docs
GitHub: DODO Labs · GitHub