Abax Tokenomics
Note: This is a mirror of a proposal originally posted within the community on Discord here. The proposal was discussed, voted on, and unanimously accepted.
A prerequisite on understanding the following is a lecture of this article.
Token Distribution
- Initial Supply
The initial supply of ABX tokens is dynamic, consisting of:
- Initial supply of 100 million tokens
- dynamically generated tokens during three months after token is deployed.
- Initial Allocation
The initial distribution of ABAX tokens is as follows:
- Public Contribution: 20% (8% instantly and 12% vested over 4 years)
- Founders: 20% (4% instantly and 16% vested over 4 years)
- Foundation: 2%
- Strategic Reserves: 58% (Locked)
- Protocol Liquidity Incentives
- Partnerships
- Dex Token Listings
- Cex Token Listings
- Bug Bounties
- Other Possible Incentive Programs
Tokens locked in Strategic Reserves can only be unlocked only by the DAO Governance. Right now we suggest to release around 6% per year in a way that will benefit DAO and project starting 3-6 months after token is created.
- Token Generation
Token will be generated in 100,000,000 (one hundred millions) quantity and will be distributed as follows:
- 20,000,000 to the public contribution contracts
- 4,000,000 to the founders wallet
- 16,000,000 to the founders vesting contract
- 2,000,000 to the foundation wallet
- 58,000,000 locked in DAO Treasury
** - Public Contribution: Phase 1**
After tokens are created community will be able to contribute to the project by interacting with Public Contribution Smart Contract. During the interaction for each 1 AZERO transferred contributor will receive 40 ABAX Tokens + Bonus. (0,025 AZERO per ABAX) as described in the proposal.
- Public Contribution: Phase 2
After all 20,000,000 tokens from Public Contribution Smart Contract are distributed there will be still possibility to mint ABAX tokens at increasing cost.
The cost of receiving 1 ABAX will be:
0.025 + 0.025 x/100,000,000 AZERO,
where x is amount of additionally generated tokens.
The tokens will be generated in such a way so the proportion from Initial Allocation is kept.
Token Inflation
There will be an annual token inflation equivalent to 10% of the initial supply, which will be allocated according to Governance decisions. Half of the annual inflation will be distributed as Governance Staking Rewards, while the other half will be allocated for development purposes. The DAO will have the authority to adjust the inflation rate and modify how the inflation is distributed.
Token Utility
ABAX tokens have several use cases within the Abax ecosystem:
1) Governance Staking: Token holders can stake ABAX in order to participate in Governance and earn rewards.
2) Protocol Fee Reduction: If decided by the Governance Abax will result in protocol fee reduction. This will decrease the interest rate paid by borrowing as well as increase the interest earned by depositing.
3) Any utility proposed by Abax DAO
Vesting Periods
Both the public sale participants and founders have vesting periods to ensure long-term commitment to the project and to align their interests with the success of Abax.
Conclusion
Abax’s tokenomics are designed to create a sustainable and thriving ecosystem while incentivizing active participation from the community. The allocation, utility, and economic model of ABAX tokens are essential components for the project’s success.