The DEXTF token is an ERC20 token built on the Ethereum blockchain designed to be used as a governance and incentive mechanism for usage, upgrades and potential changes to the protocol.
The DEXTF protocol can be upgraded and configured by DEXTF token holders and their delegates. All potential changes to the protocol, including the adjustment of system parameters like management fee factors or interest rate algorithms, must pass through a proposal and voting process as specified in the governance smart contracts.
DEXTF is a token that corresponds 1–1 with voting power in DEXTF governance. Holders of DEXTF tokens in their Ethereum wallets may delegate their voting rights either to themselves, or to any other Ethereum addresses. The recipients of delegated voting rights, known as delegates, whether they be the DEXTF holders themselves or another address, may propose, vote on, and execute proposals to modify the protocol.
DEXTF token holders and portfolio managers will accrue the majority of the platform fees, on top of the performance fees and liquidity mining incentives.
DEXTF — An ERC-20 token that designates the weight of a user’s voting rights. The more DEXTF a user has in their wallet, the more weight their delegation or vote on a proposal holds.
Delegation — DEXTF holders cannot vote or create proposals until they delegate their voting rights to an address. Delegation can be given to one address at a time, including the DEXTF holder’s own address.
Proposals — A proposal is executable code that modifies the protocol and how it works. In order to create a proposal, a user must have at least 0.1% of all DEXTF tokens delegated to their address. There are a total of 100,000,000 DEXTF tokens in existence, so a user must have at least 100,000 tokens delegated to their address. All proposals are subject to a 7-day voting period. If the proposer does not maintain their vote weight balance throughout the voting period, the proposal may be canceled by anyone.
Allocation: • 30% of total token supply allocated to DEXTF team for platform development (2 years lock-up starting from 7th September 2020 - 7th September 2022) • 5% of total token supply allocated to advisors • 50% of total token supply to be allocated to portfolio managers and investors • 15% of total token supply community driven allocation
Voting — Users can vote for or against single proposals once they have voting rights delegated to their address. Votes can be cast while a proposal is in the “Active” state. If the majority of votes (and a 5% quorum of delegated DEXTF, i.e. ~5,000,000 DEXTF) vote for a proposal, the proposal is queued in the Timelock.
Timelock — All governance and other administrative actions are required to sit in the Timelock for a minimum of 7 days, after which they can be implemented into the protocol.
Custody: All DEXTF tokens are managed in a multisig safe and can not be unlocked by a single person.
Distribution — DEXTF tokens will be distributed every 4 weeks to users for a maximum amount of 50,000,000 based on an incentive scheme described below. DEXTF reserves the rights to change the schedule and update this document accordingly. • Approximately 1,750,000 tokens will be distributed on the 7th October 2020 (first month of reward program). • Afterward the distribution schedule is as follows: Year 1 = approx. 10,000,000 tokens (4 weeks cycle) Year 2 = approx. 5,000,000 tokens (4 weeks cycle) Year 3 = approx. 2,500,000 tokens (4 weeks cycle) Year 4 = approx. 1,700,000 tokens (4 weeks cycle) Year 5 = approx. 800,000 tokens (4 weeks cycle) • Portfolio managers will be allocated a number of tokens based on their fund performance and AUM • Investor users will be allocated a number of tokens based on their investment activities on the protocol • The DEXTF Team will retain a maximum of 30% of circulating supply for platform development and maintenance. These tokens will not be used during the voting period however the team reserves the rights to appeal a proposal (Veto power) if this is against the technology roadmap or poses a security risk to the platform • Over time these key components of the governance system may change, if the community decides to upgrade them in a form of meta-governance. DEXTF holders will be the ultimate arbiters of the future direction of every aspect of the protocol
Incentive scheme: a. Investors
360,000 $DEXTF/month based on invested amount in XTF fund tokens (refer to APR on landing page of website.
Vesting through escrow contract (when available) for 9 months.
b. Portfolio Managers
96,000 $DEXTF/month based on AUM
1.2M $DEXTF/year based on Performance
Vesting through escrow contract (when available) for 12 months.
c. Liquidity Providers
29,600 $DEXTF/daily based on the below proportions that distribute higher rewards to $DEXTF pairs:
55% to all XTF FUND/DEXTF pools
30% to DEXTF/ETH pool
15% to all XTF FUND/ETH pools
Only whitelisted Liquidity Pools are eligible for this program.
Vesting through escrow contract (when available) for 6 months.
10. Distribution method
Distribution will be automated using escrow contracts (expected to be launched in May 2021). Until then, streaming of rewards will be done via Sablier over 3 months.