The protocol funds itself and its ecosystem entirely through fees. There is no team allocation of tokens. As the protocol grows, it accrues fees, and these are distributed to the ecosystem fund & development team.
There is no "schedule" of token emissions. All tokens are created through the usage of the protocol and scale accordingly.
There are several fees in place, used as incentives to balance the economic interests of parties.
- Trading (paid in
$CHAOS). When buying or selling
$CHAOSon the spot market, a small fee is collected. Initial value:
- AVAX: 0.1% for buys, 0.3% for sells.
- BSC: 0.5% for buys, 1% for sells.
- Unstaking (paid in
$CHAOS). When unstaking
$CHAOS, a fee is collected. This is to incentivize long-term staking to gain enough
$prCHAOSrewards to balance the fee. Initial value: 0.5%
- $ORDER loan origination (paid in
$ORDER). When taking out a
$ORDERloan from locked
$CHAOS, a one-time flat percentage fee is collected from the total allowable
$ORDER. This fee is large in order to disincentivize over-leveraging of
$CHAOSpurchases. Initial value: 3%
- Ecosystem Growth Fee (paid in
$prCHAOS). The protocol mints an amount of
$prCHAOSin proportion to net supply of
$CHAOS. This dilutionary fee is designed to scale with the health of the protocol. As more
$CHAOSgets minted, the same proportion of
$prCHAOSis created. In times when
$CHAOSis being sold back & burned, no
$prCHAOSis generated. Initial value: 8% of net
These fees solely fund the protocol & its ecosystem operations. There are no "protocol tokens" that are portioned out to team members, insiders, or investors.
The Ecosystem Growth Fee (all in
$prCHAOS) is used to fund
$prCHAOSemissions on secondary markets & protocols. For example,
$prCHAOSreward emissions for providing liquidity to an AVAX-CHAOS pool would be funded through these fees.
By redirecting the
$prCHAOSfrom the protocol to external markets, the accounting for emissions becomes very straightforward and scalable.
$prCHAOSemissions to stakers is itself a fixed proportion of the global supply of
$CHAOS. This schedule of
$prCHAOSscales with the supply of
$CHAOS. For example, 0.5% of the current supply of
$CHAOSis created as
- These stakers rewards go entirely to stakers.
- A portion of this
$prCHAOSis now deployed to incentivize activity on other protocols. For example, adding liquidity to AMMs, or depositing
$CHAOSin Synthetic Or Lending Protocols. This way of rewarding (or "bribing") involvement with other projects scales with the usage of ONC.
- The Ecosystem Growth Fee is a flat rate of net
$CHAOSproduced. It scales with the total supply of the protocol. This approach ties the rate of
$prCHAOSemissions to the actual magnitude of the protocol, rather than putting tokens on an arbitrary timetable schedule.
Fees from trading,
$ORDERloan origination go to the funding the development team, marketing, content creation, and bug bounties. These fees are paid in
$CHAOS, and are not suitable candidates for emissions elsewhere.