Empowering PoseiSwap with POSE Tokens— Tokenomics & Use-Cases
Updated April 13, 2023
The POSE token will the driving force behind PoseiSwap, the first Layer3 DEX, on Nautilus chain. In this article, we’ll explore how POSE is empowering the Poseiswap ecosystem as well as its users.
What can you do with the POSE token?
1. Staking
POSE token holders can lock their tokens into staking from 30 minutes to up to 4 years in order to obtain a POSE derivative token called sPOSE (staked POSE), which is used for voting and other governance activities.
Here is a sample computation table below:
2. Voting
When staked, the POSE token yields sPOSE, which can be used to vote on DAO proposals within the Poseiswap Ecosystem.
3. Yield Farming
Liquidity Pools have always been the backbone of DeFi, particularly DEXes. These pools provide the resources needed for the swaps, exchanges, and other products to function optimally.
Initially, PoseiSwap will have three mining pools in operation:
- LP (Liquidity Providing) Pool: provides the liquidity in Poseiswap and deposits LP (Liquidity Pool) tokens to farm POSE tokens.
- POSE Pool: deposits sPOSE tokens to farm POSE tokens.
- Fee Sharing Pool: deposits sPOSE tokens to receive ⅙ of the fee generated by swaps.
Over time, a special type of pool called a “Joint Mining Pool” will also be launched.
- Joint Mining Pool: for Poseiswap featured token, TOKEN (partner, ecosystem, or IDO), provides liquidity for TOKEN-sPOSE and deposits LP tokens to farm TOKEN and POSE at the same time.
4. Referral Program
The Posei Ecosystem has a way of incentivizing loyal followers who would refer their friends to PoseiSwap.
A referrer may earn rewards from swaps, farms, and any interactions made with Poseiswap’s products using their customized referral link.
To be a referrer:
- You need to register a nickname to use for the referral link for 100 sPOSE tokens.
For instance, if your preferred nickname is Justin250, your referral link should look something like this: app.poseiswap.com/justin250
Please take note that referral link registration is on a first-come, first-served basis.
How will the tokens be distributed?
Team (20%)
A fifth of the POSE token supply will be allocated to the team with 7-to-30 months of linear vesting, which means they will receive the same amount every month.
Investors (3%)
Of course, PoseiSwap would not have existed without the assistance of the people and companies who worked tirelessly to create the fastest, cheapest, and safest DEX on the Nautilus Chain.
2.5% of this 3% will be distributed over a 7-to-30-month of linear vesting. The final 0.5% will be distributed via a Token Generation Event (TGE).
Validator Airdrop (7%)
Zebec Protocol is one of the biggest partners and contributors to PoseiSwap. For this reason, we allocated 7% of PoseiSwap’s POSE token supply to the holders of the Zebec Node NFT.
A Zebec Node NFT entitles its holder to ZBC rewards and the ability to run a Zebec Chain Validator Node later on.
The early Zebec Node NFT holders will receive 0.35% (with 1-to-6 months of linear vesting), while the new ones will receive 1.05%. (1-to-24 months of linear vesting).
The POSE tokens will be airdropped to their addresses, provided that they have met the conditions outlined here.
The remaining 5.6% will be addressed later on.
Public Sale (5%)
There will be three tiers for the public sale of the POSE tokens:
Tier 1: 0.50% will be unlocked at TGE
Tier 2: 2.50% — 7-to-18 months of linear vesting
Tier 3: 2% — 13-to-36 months of linear vesting
Liquidity Mining (50%)
Certainly, DeFi and its DEXes would not exist without their very foundation, liquidity pools.
The biggest portion of the POSE token supply will be reserved for liquidity mining incentives like rewards to encourage more people to put liquidity on the market, thereby balancing supply and demand and, thus, the price.
Ecosystem (15%)
It is used for ecological construction, including marketing making, initial liquidity, NFT mining program and DAO Treasury management.
To sum up, the POSE token is driving PoseiSwap’s decentralized exchange platform. As more traders recognize the value of POSE and join the PoseiSwap community, we can expect to see continued growth and progress in the world of decentralized finance, particularly in Layer3.
