Netswap Liquidity Mining Emission Reduction Plan #1
According to Market data and suggestions from our community, Netswap team is releasing the $NETT Liquidity Mining ($NETT Farming) Emission Reduction Plan.
Purpose of this emission reduction and future distribution plan:
Based on our research on DeFi and other DEXes, Netswap followed Uniswap’s strategy in which 0.3% transaction fee is charged from each swap, and 5/6 of this transaction fee is distributed to liquidity providers. Even though there’s currently no liquidity incentives on Uniswap, it’s still the pacemaker among many DEXes (according to liquidity and trading volume), which also demonstrates that the development of Netswap will not be affected by a reduction of $NETT liquidity mining incentives. Therefore, Netswap team decided to continue to follow Uniswap’s way of success, and the first step is the $NETT emission reduction plan. We decided to reduce the $NETT liquidity mining emission of the first year to 10%. This emission reduction plan will also amplify the value and usability of $NETT as Netswap’s governance token, and further emission reduction plans cannot be ruled out in the future.
The original intention of Netswap is to become an infrastructure to incentivize and promote Metis ecosystem. Due to the trading value of mainstream token pairs, they don’t need that much $NETT incentives for liquidity (refer to trading volume and transaction fees on Uniswap). Therefore, $NETT incentives will gradually move to support Metis native projects in the future. Netswap will open the 2xReward pool to maximize the incentives for native projects on Metis Andromeda, and our community will be able to enjoy those benefits. Based on this, $NETT rewards will be distributed to the community in more interesting ways in the future, and Netswap team will gradually build a set of quantifiable incentive mechanisms and announce them in proper time.
Emission Reduction Details:
$NETT Liquidity Mining Start Time: 2022-01-09 15:00 UTC
Initial Emission Reduction Time: 2022-02-14 15:00 UTC
Before the initial emission reduction, $NETT Liquidity Mining has been successfully running for 36 days. The emission from Liquidity Mining is 36*81,369=2,929,284 $NETT, the accordingly reserved 10% $NETT amount is around 292,928.4, thus, the total emission is around 2,929,284+292,928.4=3,222,212.4 $NETT, the circulation is around 1,000,000(Airdrop) + 3,222,212.4 = 4,222,212.4 $NETT.
The remaining $NETT amount that hasn’t been mined out is around 99,000,000-3,222,212.4=95,777,787.6.
Based on the above, Netswap team is modifying the $NETT liquidity mining distribution amount of the 1st year to 10% (of the 99M NETT), afterwards, the rate of emission will be modified according to the ecosystem developments.