An introduction to $DFYN tokenomics: investing in the Dfyn decentralized ecosystem
The Dyfn Network was created as an answer to a lack of options when it came to providing liquidity incentives to networks such as the Router Protocol. Launched in late 2020, Dfyn.network is a Layer-2 automated market maker (AMM) protocol hosted on the Polygon Network. At the time, it was the first AMM-based decentralized exchange to launch on Polygon, formerly known as the Matic Network.
The steady rise in popularity Dfyn has seen in the past several months has led to our community expecting a token launch. After assessing the needs of the community and the technical limitations of the network, we decided to go through with the launch of the DFYN token at the beginning of May.
As a deflationary community governance token, the DFYN token will have a supply capped at 250 million tokens. It will be used to aggregate liquidity across multiple Layer-1 and Layer-2 blockchain solutions by leveraging the cross-chain bridges provided by Router Protocol. In turn, it will also be used to incentivize the Router community to provide liquidity to the network.
Dfyn’s tokenomics were designed to allocate the largest possible number of tokens to the community. After much deliberation, we came up with a balanced approach that provides our partners and early investors with enough skin in the game and puts the future of the protocol in the hands of the community.
We also introduced a vesting schedule for every token holder group in order to incentivize long-term holding and prevent significant price spikes following the upcoming token launch.
Here’s the detailed breakdown of the $DFYN token allocation, as well as the vesting process of each of the system’s major stakeholders.
DFYN Token Allocation
Total supply: 250,000,000 $DFYN
Rewarding liquidity providers on the Dfyn.network is the core principle behind our product. To ensure all liquidity providers are fairly rewarded for their participation, we’ve allocated 30%, or 75 million tokens, to the reward pool.
The tokens will be released based on future mining and farming initiatives announced by the protocol. Stay tuned for more updates.
Here at Dfyn, we’ve recognized the potential an ambitious and tight-knit community can have. That’s why we decided to allocate 17.45% of $DFYN’s total supply to the ecosystem fund, which will distribute grants to projects and developers looking to build upon and improve Dfyn.
A total of 43,625,000 tokens will be allocated to the fund and unlocked over a period of 1.5 years. A total of 3% of the supply or 1,308,750 tokens will be unlocked immediately after the token launch.
Partners and advisors
The partners and advisors that have supported Dfyn from day one will receive a total of 37,500,000 tokens or 15% of $DFYN’s total supply.
The tokens allocated to our partners will also be subject to a vesting schedule, with 10% of their total allocation unlocked on day 180 following the token sale. The remainder of the allocation will be released according to the schedule over the next 2.5 years.
Our dedication to a fair launch and community engagement doesn’t exclude allocating a portion of our token supply to NFT airdrops. To support the booming DeFi ecosystem, we have allocated 2,25% of our token supply, or 5,625,000 $DFYN, to these types of airdrops.
The entire allocation will be unlocked according to community initiatives that arise in the future and isn’t subject to a particular vesting schedule.
We have allocated 4% of our token supply to the liquidity provision fund to create a system that incentivizes liquidity movement and action. A total of 10,000,000 tokens have been allocated to the fund, with 500,000 to be unlocked upon the token launch. The remainder of the allocation will be unlocked monthly over a period of 18 months.
Without having sufficient skin in the game, protocol founders tend to leave their projects hanging. However, allocating too much of the protocol’s token to its founding team raises a slew of other problems, with centralization of power being the biggest one.
That’s why we’ve decided to distribute only 15% of $DFYN’s total supply to our team. A total of 37,500,000 tokens will be allocated to our team and remain locked for 2.5 years. Only 10% of the allocation will be unlocked on day 180 following the token launch, with the remainder unlocked periodically over a linear vesting period.
Dfyn’s seed round saw 7.5% of the total token supply allocated to a group of cryptocurrency investors. The seed round raised $900,000, with 18,750,000 $DFYN sold for $0.048 each. Following the seed round, Dyn’s valuation rose to $12 million.
Our investors are also subject to a vesting schedule—937,500 tokens will be unlocked immediately, while the remainder of the allocation will be unlocked over a period of 15 months.
During our private sale, we will allocate 7,5% of $DFYN’s total supply or 18,750,000 tokens to our investors. Given the fact that these were the investors that decided to enter the Dfyn ecosystem at its riskiest phase, we have decided to unlock 20% of their allocation immediately after launch. This means that 3,750,000 $DFYN tokens will be available to our private buyers upon launch, while the remainder of the allocation will be released at 20% each quarter.
Our public token sale will see 1,3% of $DFYN’s total token supply available to buyers. All of the 3,250,000 tokens will be fully unlocked from day 0.
The sale will offer the tokens for $0,094 apiece, with Dfyn expecting to raise just over $305,500 during the sale.
Our vesting schedule will make 9,746,250 tokens available on day 0 and keep the majority of the remaining 240,253,750 tokens locked over the next 2.5 years.