Tokenomics
🟢 Status: Live
This document outlines the live economic structure governing the 0Fx token and its supply mechanisms within the protocol’s architecture.
Tokenomics
The tokenomics of the 0Fx protocol are engineered to ensure fairness, long-term sustainability, and alignment with both community incentives and market integrity. The structure supports better entry conditions at low capitalizations while progressively distributing the token supply at higher valuation levels. This prevents the dilution of early participants’ positions and establishes a deflationary distribution framework.
Token Distribution & Supply
Max Supply: 500,000 0Fx tokens The total maximum supply is fixed and non-inflationary. No additional tokens will ever be minted beyond this supply.
Liquidity Pool Allocation
50% of Max Supply is allocated to liquidity provision:
10% of the Max Supply was introduced via a crowd pooling event, allowing the community to acquire tokens while simultaneously seeding the initial Uniswap liquidity pool.
The remaining 40% is gradually added to the liquidity pool by the protocol across structured price tiers (see below). These tokens are provided as single-asset liquidity, allowing the protocol to control depth, slippage, and distribution across capitalization thresholds.
While this liquidity is not technically locked, it is permanently allocated to the protocol’s trading infrastructure. This approach ensures flexibility for dynamic liquidity management, while keeping the funds fully committed to supporting the ecosystem.
Structured Liquidity Tiers
To ensure smooth, price-aligned token distribution, liquidity is injected across the following fixed-price thresholds:
Tier 1 – 50,000 tokens → Fixed at $0.64224426
Tier 2 – 50,000 tokens → Starting at $1.00 and up
Tier 3 – 50,000 tokens → Starting at $10.00 and up
Tier 4 – 50,000 tokens → Starting at $100.00 and up
Tier 5 – 50,000 tokens → Starting at $1,000.00 and up
Each tier corresponds to a minimum price level at which tokens are released as liquidity. This ensures progressive supply alignment with the protocol’s market capitalization, optimizing both stability and accessibility as demand grows.
Long-Term Holding & Commitments
While 0Fx does not enforce smart contract-based locking on all tokens, the project is structurally committed to long-term alignment:
50% of Max Supply is held by the protocol founder under a transparent long-term strategy. These tokens are not locked on-chain, but are explicitly committed until at least 2030 and are intended to support long-term protocol expansion, not speculation.
Mandatory vesting is enforced for major participants in the initial crowd pooling event, ensuring gradual token release and protection against early exit behavior by large holders.
Protocol Revenue Model
The 0Fx protocol generates sustainable funding through a 1% swap fee applied to every transaction occurring in its Uniswap liquidity pool.
This fee is collected by the protocol itself and used to support:
Arbitrage operations conducted by the protocol to stabilize internal markets
Reward distributions to token holders
Operational sustainability and ecosystem development
This model enables continuous growth without selling tokens to external investors, preserving the protocol’s decentralized and community-owned model.
Economic Sustainability
By ensuring that:
Liquidity is distributed gradually across rising price tiers,
Half of the supply is strategically committed long-term,
Ongoing funding is derived from protocol usage rather than token dilution,
…the 0Fx tokenomics establish a solid, deflationary, and community-aligned economic framework built for resilience and scalability.
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