DexToro Token

DexToro Tokenomics Explained

The DexToro token (DTORO) is our utility token, which is used to sustain long-term protocol growth. DTORO has three primary functions: (a) Staking (b) Trading Rewards and (c) Governance.

  • Stakers will receive a share of protocol revenue + additional trading rewards, which are inflated for traders staking the most DTORO. This incentivizes token holders to stake + traders to purchase tokens or re-invest their trading rewards into staking in order to take advantage of the inflated trading rewards for active stakers (largest stakers receive the highest inflated allocation). These trading rewards are based on total fees paid.

  • ONLY traders with staked DTORO receive DTORO tokens via the trading rewards formula based on total fees paid. The more you trade, the more DTORO tokens you earn.

  • Token holders will be eligible to vote on upcoming protocol upgrades and token listings.

Read The Official DexToro Whitepaper:

Click on the PDF Below 👇

General Overview

The DexToro token launched on October 10th, 2023. The token follows the below model:

  • Ticker - DTORO

  • Initial Supply - 25,000,000

  • Inflation Model - Weekly emissions will start at 1,153,846.22 DTORO the first week and drop to around 15,955.4269 DTORO (1% APY) at the end of four years. Resulting in a total supply at the end of four years of 80,527,792

Allocation Breakdown

  • 50% - DexToro Treasury

  • 10% - Investors

  • 25% - Growth Fund

  • 5% - Liquidity

  • 10% - Team & Advisors

Inflation and Fee Allocation

40% of inflation is routed to the treasury, 20% of inflation is dedicated towards trading rewards (15% is earmarked for future trading incentives by the treasury), and 40% of inflation is routed to stakers.

This will enable DexToro to sustainably fund long-term protocol growth while enabling DexToro to provide industry-leading trading rewards and incentives for both stakers and traders.

Inflation is minted once per week by a keeper; however, this mint functionality can be called by anyone in the event the DexToro keeper is unable to mint rewards. The reward for minting is 1-20 DTORO per mint.

Vesting Mechanism

DTORO printed via inflation will undergo a 1-year lock-up period. The lock-up mechanism will begin with a 90% fee for vesting DTORO early, which will decay linearly. If tokens are vested early, the percentage of tokens that are still applicable to the fee will be taken out of circulation and returned to the DexToro Treasury. After one year, the fee would reach 0%, and no tokens would be forfeited when vesting DTORO.

Example: If you have 1,000 DTORO, and it's vesting, and you vest immediately, you’ll be left with 100 DTORO; if you wait a year and then vest, you get 1,000 DTORO.

Long-Term Sustainability of DTORO

From the ground up, we’ve built the DexToro Token with stakers and long-term token holders in mind first. Diligently crafted tokenomics, including our 4-year weekly inflationary token emissions, one-year vesting mechanism for both the staking and trading rewards with a built-in 90% early vesting fee, which decays linearly over the period of one year and three innovative mathematical formulas powering the staking and trading rewards distribution logic, each smart contract perfectly working in synchrony in order to maintain a healthy long-term token price appreciation.

Why is the FDV (fully diluted valuation) much larger than the Market Cap?

The majority, 95%+ of the treasury tokens are always locked and staked to control the APR %. This is built into our tokenomics. If we do not stake the treasury tokens, the APR would be 100%+, and this is not sustainable as it's pure inflationary yield, plus potentially dangerous for such extremely high inflationary $DTORO rewards to be rewarded.

Feedback From a Professional Market-Maker

The integration of staking, trading rewards, and governance functions in DTORO is impressively comprehensive. The design of its inflation mechanism is quite sensible, with a gradual decrease that benefits long-term value stability. This economic model effectively encourages user participation in staking. The one-year lock-up and unlocking mechanism is particularly smart, protecting the interests of long-term investors while preventing significant short-term market fluctuations. Therefore, I believe the core of the DTORO project lies in the initial price stability. If it can achieve a gradual increase, that would be even better. This approach reduces short-term speculation and increases the willingness of users to hold positions in the long term. Coupled with significant advancements in the project’s technology and market aspects, I'm confident that the project's market value will experience a stable and sustained increase.

Last updated