Tokenomics (After)

Summary

On November 10, 2022, the tokenomics is changed to expand the underlying value of the Pangea Swap.
Mining pools that can respond to various liquidity mining types and have flexible fee policies have been deployed.
"Growth fund" is open for the growth of Pangea Swap, and the name of the existing DAO fund was changed to "Revenue Sharing fund."

[1] The Introduction of Mining Pool

In the past Pangea swap liquidity pool ("Pool"), the initially set swap fee rate (e.g. 0.2%) and swap fee distribution ratio (e.g. LP 90%, DAO fund 10%) could not be changed, and the pool token (e.g. KLAY/oUSDT pair, KLAY and oUSDT) was only possible to provide rewards.

There was an advantage to decentralization in that various fee rates are fixed and cannot be changed later, but there was a disadvantage in that it was difficult to operate flexibly according to changes in market conditions. In addition, It had a limitation in that it could not provide more diverse liquidity mining programs.

The new type of pool ("Mining Pool") has dramatically improved the above limitations. he swap fee rate and fee distribution ratio can be changed even after the pool is created, and the reward program can be operated with a third-party token (e.g., STONE rewards distribution to the KLAY/oUSDT pair).

The swap fee distribution of the mining pool (2022.11.10 ~)

Liquidity Provider: 80%
Revenue Sharing Fund (DAO fund(past)): 10%
Growth Fund: 10%

In the future, Mining pools will run the Pangea Swap primarily, and they will also be used to distribute STONE tokens.

Through mining pools, Pangea Swap will be able to respond more flexibly to the market conditions, and it is also possible to provide various types of liquidity mining programs required by partner protocols.

The list of newly created mining pools subject to STONE distribution will be announced later.

[2] Growth Fund, Growth Partner

The Pangea Swap team has created a "Growth Partner" and a "Growth Fund" with the aim of securing financial resources for incentives to support the protocol's inherent growth and rapidly increase the number of participants in the ecosystem.

The Pangea Swap team plans to grant the status of a "Growth Partner" only to partners who (1) contribute to the growth of Pangea Swap and (2) whose contribution can be quantitatively measured. Growth partners will receive contribution rewards through the Growth Fund.

The attractive incentive program will spur the growth of the protocol by encouraging partners to voluntarily participate, which will lead to profits for Pangea Swap's liquidity providers and STONE holders.

Growth partners and growth fund execution details will be disclosed transparently to the community. The selection of growth partners is initially led by the team, and after DAO governance is advanced, this will also be determined by governance.

Of the Growth Fund, the remaining funds after payment to Growth Partners will be used for the buyback of STONE tokens until there is a change in governance in the future.

Profits will be distributed to STONE holders from the DAO Fund. Therefore, going forward, the name of the current DAO fund will be changed to a Revenue Sharing Fund to avoid user confusion.

The fees accumulated in the revenue sharing fund are periodically swapped into oUSDT and stored. STONE holders can benefit from the distribution of the revenue sharing fund. See the detailed revenue sharing policy.