Tokenomics V2

The new tokenomics of the 0FX protocol are designed to be fairer and present a better opportunity for investors. This structure allows for better acquisition at lower prices while avoiding the distribution of all tokens at these low prices. Although current and new investors can obtain a better allocation relative to a lower capitalization, fewer tokens are distributed at the initial price levels. This ensures that the majority of the tokens are distributed progressively at higher capitalizations.

Token Distribution and Liquidity Tiers

Token Allocation

1

Maximum Supply

500,000 0FX tokens.

2

Liquidity Pool

50% of the maximum supply is allocated to the liquidity pool.

3

Long-Term Lock

50% Tokens are locked with progressive unlocking to maintain stability.

Liquidity Tiers

The distribution of liquidity is structured across different price levels to ensure progressive distribution and enhanced market stability:

1

First 50,000 tokens:

All at $0.64224426.

2

Second 50,000 tokens:

Starting at $1.00 to infinite.

3

Third 50,000 tokens:

Starting at $10.00 to infinite.

4

Fourth 50,000 tokens:

Starting at $100.00 to infinite.

5

Fifth 50,000 tokens:

Starting at $1000.00 to infinite.

Each tier represents the initial price level at which the liquidity is added, ensuring a stable and progressive build-up of liquidity as the price increases. By distributing tokens at progressively higher price levels, the protocol avoids concentrating the distribution at lower capitalizations and instead spreads it across multiple tiers. This ensures better market liquidity and stability.

Investor Confidence and Market Stability

Token Locking and Vesting

1

Locked Supply

50% of the maximum supply is locked as liquidity.

2

Gradual Unlocking

Tokens are progressively unlocked to ensure long-term market stability and flexibility, without any predefined usage plans.

3

Mandatory Vesting

Major holders must adhere to long-term vesting schedules, even though they acquire their positions like any other investor.

This strategy is designed to instill confidence among new investors by ensuring that significant portions of the token supply remain locked and are gradually released.

Economic Model and Sustainability

On-Chain Transaction Fees

1

Transaction Fee

The protocol will initially implement a 1% fee on transactions within the Uniswap pool.

2

Future On-Chain Fee

In the future, a wrapped version of the 0FX token, which will include an on-chain fee, will be used within the ecosystem for its applications and various exchanges. This transition will allow the protocol to continue funding its operations effectively and conduct arbitrage opportunities for the profit of the protocol’s users.

3

Budget Growth

As the token capitalization and application usage grow, the protocol’s budget increases.

4

Continuous Funding

The fee model ensures ongoing funding for the project without needing to sell community shares to external investors.

Community-Focused Vision

By implementing a transaction fee model, 0FX can finance its development in proportion to its growth and trading volumes. This approach eliminates the need to sell shares to private investors or large holders, maintaining the project’s community-driven ethos.

Conclusion

The revised tokenomics of the 0FX protocol represent a significant advancement in its economic model. By locking the entire maximum supply in liquidity and distributing it progressively across higher price tiers, the protocol enhances market stability, provides a better opportunity for investors, and raises liquidity as its capitalization evolves. The initial transaction fee on the Uniswap pool, transitioning to an on-chain fee with the wrapped token, ensures continuous funding aligned with the protocol’s growth, supporting the vision of a community-driven project without external monopolization of arbitrage opportunities.