gDEX (DexFi Governance)
The gDEX token can be staked in order to share in the profits from the dexDAO and functions as a key component within Dex Finance's ecosystem. The token is designed to incentivize community participation and to create long-term value for all stakeholders.
gDEX CONTRACT ADDRESS: 0x92a212d9F5eEf0b262aC7D84AEA64a0d0758B94f
gDEX is ONLY traded on our native exchange: dexSWAP
Revenue Sharing Model
Of the revenue generated by dexDAO, 80% is channeled directly to gDEX stakers. This is carried out during weekly epochs, where the previous week's revenue is distributed among all gDEX stakers.
At the end of each week, the protocol calculates the revenue generated and prepares to distribute 80% of it to the gDEX stakers. This weekly distribution mechanism ensures continuous rewards for the community members who stake their tokens.
Supply Mechanics
The initial supply of the gDEX token is capped at 120,000. However, the protocol aims to burn tokens over time, reducing the supply back to 100,000. This deflationary mechanism is expected to add value to each token by reducing the available supply.
dexSWAP Liquidity Pool
10% of the dexDAO revenue goes to protocol owned liquidity (POL) in the USDEX+/gDEX LP in dexSWAP.
This mechanism adds buy pressure to the gDEX token. Each time liquidity is added, gDEX will need to be purchased from the LP before being added as liquidity.
Being protocol owned, means that the protocol itself maintains 100% ownership of the liquidity, ensuring robustness and long-term sustainability and negating the need to reward liquidity providers freeing up revenue for distribution to gDEX stakers.
For more information on liquidity, please view the Dune analytics for DexFi's native liquidity pools: gDEX/USDEX+ & USDEX+USDC Liquidity
Treasury Investments and Overflow Distribution
In addition to revenue-sharing and liquidity mechanisms, the dexDAO has an active treasury investment strategy. After covering essential operational costs, such as infrastructure maintenance and development costs, any overflow in the treasury is allocated for distribution to gDEX token holders.
This further aligns the financial interests of gDEX holders with the long-term success of the dexDAO ecosystem. By participating in this overflow distribution, token holders not only benefit from the protocol's direct revenue but also share in the gains from savvy treasury management.
The inclusion of treasury overflow as a distributable asset to gDEX holders amplifies the value proposition of holding and staking gDEX tokens. It serves as an additional financial incentive that distinguishes gDEX from other tokens in the DeFi space, making it a compelling option for both short-term gains and long-term investment.
Last updated