Tokenomics
The Economic Model of O3 Interchange(v2)
Last updated
The Economic Model of O3 Interchange(v2)
Last updated
O3 Swap Token (O3) issued by O3 Labs represents all O3 products and is also a critical mediator to promote their development. Except for trading on exchanges and some airdrop events, there are two major ways to earn O3 tokens: providing liquidity in Liquidity Pools and participating in governance voting.
Most importantly, O3 Interchange will build an Economic System of Deflation. All transaction fees collected into the Treasury will be used to constantly buyback $O3 and burn to pump it, thus benefiting all $O3 Holders.
In addition to the O3 Swap Token, the O3 DAO Token (DAO3) is the governance token and performs extra applications of O3. O3 Holders can stake their O3 to get DAO3, which means being an O3 Holder is the only official way to get DAO3. Most notably, DAO3 mainly represents the governance rights of holders, so it shall not have a price or should be price inelastic.
Under this Economic System of Deflation, all participants, including users, liquidity providers, developers, and all O3 Holders, will be encouraged to invest in the maintenance of the overall ecology through the O3 and the DAO3 tokens.
O3 Token Contract Address (Same address on each chain):
0xEe9801669C6138E84bD50dEB500827b776777d28
DAO3 Token Contract Address:
Coming soon
Users who interact with cross-chain Bridge, Swap, Gas Station, and all other functionalities on O3 Interchange, in which processes generate transaction fees.
Liquidity providers can get LP Tokens that represent the proportion of the liquidity they have deposited into Liquidity Pools. They can stake their LP Tokens to earn rewards.
O3 Holders can stake their O3 tokens in the “Vault” to get DAO3, which represents the governance rights of the O3 DAO Governance. There will be rewards in O3 tokens for governance participation and rewards in other tokens for DAO3 holders.
Our Community Treasury is a multi-sig contract designed to receive, manage and distribute tokens for multiple purposes to promote the development of O3 Labs projects and the community as a whole.
The treasury fund will be transparently supervised and managed by community members through O3 Vote, giving them the power to decide how the fund should be used.
| Name | Multi-sig Contract Address |
|---|---|
Treasury (Arbtrum One) |
Mainly composed of the O3 Labs team responsible for promoting the development of the project and the community construction. Other candidates can be elected to join the Development Committee for building along with the O3 Labs.
The LP tokens received after adding liquidity into Liquidity Pools can be staked in the LP pools in the “Vault” to earn O3 tokens or other tokens.
In order to protect the $O3 token price, the total incentive is set to a fixed amount per year and will be halved based on that amount of the last year.
| Year | O3 Token Incentives |
|---|---|
2022.06 - 2023.06 | 10,000,000 O3 |
2023.06 - 2024.06 | 5,000,000 O3 |
2024.06 - 2025.06 | 2,500,000 O3 |
... | ... |
Each pool has an initial weight of incentive proportion, and the weight will be redetermined periodically by the proportions of its trading volume and governance votes to optimize the utilization rate of the liquidity and maximize the interests of liquidity providers.
In Phase I of O3 DAO, O3 holders can stake their O3 to get NFTs, and then stake NFTs to mine DAO3.
Check here for more details > Phase I: Fair Launch
DAO3 holders can participate in governance, and voting with DAO3 gives you rewards in O3 tokens depending on the DAO3 cost.
DAO3 can also be staked to earn rewards in Venture Pools for tokens provided by our partnered projects. There can be some projects that are freshly arising but have great potential, and partner projects can also be proposed and voted on in DAO.
The O3 token is in a locked state after being mined in the above ways. Users are required to provide liquidity with O3 trading pairs to the main DEX on the current chain to unlock the O3 tokens. The unlocking mechanism is as follows:
UnlockSpeed = K * (LP Amount Staked)
K is the number of unlocked O3 per block time that relates to the $O3 price.
The decimal place for K is 8.
maxUnlockSpeed = (O3 Amount Locked) / G
O3 Amount Locked = The number of locked O3 (including the claimable unlocked O3)
G is the block amount depending on the block time of a chain.
All transaction fees stored in the Treasury will be used to constantly buyback $O3 from the market for periodic redistribution.
| Treasury | |
|---|---|
80% (can be decided by the O3 DAO) | Buyback $O3 and burned. |
20% | Goes to the Development Committee for future development, community events, and marketing campaigns. |
Redistribution proportions for other utilizations can be proposed and voted through the O3 DAO.
