Bolstering Token Utility and Sustainable Tokenomics
Moving deeper into 2022, one of the team’s chief priorities is to bolster the $DON token’s utility while simultaneously making necessary adjustments to the tokenomic design, so that distribution is paced at maximal sustainability.
Utility is going to be pursued with extreme aggression in coming months — first with an auction based loan and leverage system, then with pfp NFT lotteries, with rarity linked to lottery ticket quantity, and finally with the strategy builder and a host of other platform wide upgrades. Each of these advancements are going to completely revitalize the core product, assisting Don-key to best deliver on its potential. More information on each will be rolled out in the immediate days before these products go live; so stay on your toes, with eyes fixed at Don-key’s socials to ensure you are first in line for their releases.
Sustainable Tokenomics
With private sale allocation being nearly completely vested, Don-key’s team is now reassessing tokenomic design to restructure and delay the release of $DON marketing and LP / Farming pool tokens in order to lengthen the runway for long term product development.
In addition to this, Don-key’s engineers are working to implement regular token burns within the protocol to make the $DON token deflationary.
Also, with emerging token utility, Don-key will implement two additional tweaks to accelerated rewards. First, in calculating extra APR, instead of calculating based on the fixed token price of the invested token at the time of investment, now accelerated rewards will take into account current price appreciation and depreciation.
For instance, if you staked 100 Cake worth $2000 when Cake was $20, extra APR in DON tiers will no longer be calculated according to the flat $2000, but will instead fluctuate according to the current price of Cake.
Second, because DON rewards are pegged to dollar value and not absolute quantity of $DON, the team is now implementing a floor of $0.30, meaning the amount of extra $DON earned will never be calculated below a floor price of $0.30, even if the current price of $DON is lower.
These changes will be implemented retroactively on February 16th at 9:00 AM EST; so please harvest before to claim your rewards.
The purpose of both measures are to limit the quantity of $DON tokens entering the market, to provide more balanced and sustainable price support. This coupled with bolstered token utility, will dry up token supply, increase demand, and make for an overall more valuable token.
About Don-key Finance
Don-key.finance is building the first social trading platform for yield farming, bringing together liquidity providers and yield farmers alike. For this reason, the community refers to Don-key as the eToro of Yield Farming, which is a title the team embraces wholeheartedly.
The goal of the platform is to eliminate yield farming’s infamous complexity and replace it with a seamless retail experience, streamlined to offer the most profitable and adaptive product on the market.
With just one-click users can route their liquidity — in whichever token they chose — through professionally designed strategies that are updated to chase the highest available APY while minimizing risk.
Competitive Yield Farming is a full-time job; Don-key does it, so you don’t have to.
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