Tokenomics, or token economics, is the fusion of “token” and “economics.” It serves as a design or framework within decentralized systems, governing the creation, distribution, and utilization of tokens in blockchain networks. Several underlined pillars for tokenomics are the total supply, vesting periods, incentives, token utility, and distribution strategies for teams, advisors, and investors.
The latest tokenomics addition is designed to ensure the long-term sustainability of the $A51 token. The introduction of ve tokenomics, emission, and staking mechanisms will strengthen the token liquidity and the overall sustainability of the token.
However, we recognize that despite a well-derived tokenomics model, incentivizing user participation is essential and it will further work to strengthen the token and its liquidity. For the focus of this article, we will be talking about different programs designed for our Miners, Stakers, and Farmers. These initiatives include:
- Liquidity mining / Farming
Liquidity Mining and Farming:
The Liquidity Mining program is set to distribute 242,662 tokens over a 60-month period, constituting a five-year initiative where more than 4k tokens will be distributed monthly among liquidity providers for providing liquidity in A51/Eth pool. By doing so, the program effectively counters inflationary pressures, ensuring that those providing liquidity are not only compensated for their fees but also receive token rewards, enhancing the overall value proposition for their participation.
In the Farming program, we will have five whitelisted pools, each offering incentives for users participating in liquidity provision. Over the course of 60 months, a total of 566,213 tokens will be distributed among liquidity providers across these pools, which adds up to 9,436 $A51 tokens monthly. The allocation of tokens for specific pool will be determined based on different weighted percentages on each pool, taking into account both the trading volume and the specifics of each pool. This approach to weighting ensures a fair and dynamic distribution of rewards, aligning with our commitment to creating a sustainable and rewarding environment for liquidity providers.
Staking rewards have consistently been a primary source for incentivizing A51 (formerly Pilot) holders. Presently, there are 354,530 pilots staked, which makes it 33.17% of the total circulating supply locked. Pilot holders receive ETH rewards against their staked pilots, calculated using the formula:
Yearly APY=Monthly Rewards USDStaked/ Pilots USD×100×12
Building upon this staking mechanism, we’ve introduced a change by adding our new token as a reward along with Eth, which our stakers earn. While the formula for reward calculation remains unchanged for calculating ETH rewards, we’ve introduced an additional layer of rewards in the form of A51 tokens. Over a 12-month period, a total of 53,925 $A51 tokens will be distributed to stakers, equating to 4,494 tokens per month. This improves the overall staking experience, providing stakers with an additional reward on top of their eth earned.
A51 Finance has announced a strategic partnership with Quickswap Bonds, a newly launched initiative powered by Apebond. Through this partnership, users gain the opportunity to buy $A51 tokens at a discounted price compared to the market rate.
Upon buying from bonds, these Apebonds come with a vesting period of 30 days, during which the tokens gradually unlock, providing users with a structured and rewarding release of tokens into the market. This bond approach not only enables users to access A51 tokens at a discounted rate, setting them apart from those acquiring tokens through decentralized exchanges (DEX) or Centralized Exchange (CEX), but it also contributes to the protocol’s liquidity strengthening. The bond works in a way that it keeps increasing the discount based on low volume and the discount becomes less as the volume increases.
The Apebonds initiative serves a mutual benefit for protocol, and users: not only does it provide users with access to acquire A51 tokens at a discounted rate, setting them apart from users buying from DEX or CEX, but it also add value in strengthening the protocol’s liquidity by adding ETH and USDT back to the liquidity pool.