Upgrade Tokenomics V2.0


We launched on Binance Smart Chain in March 2023 and since then saw rapid growth. Our trading volume hit nearly $500mio and more than $380,000 protocol fees were paid by traders. 40% (more than 144,000 USD) of these fees was distributed to esUNW holders.

On the other hand, we also had some significant selling pressure, in particular, on UNW, partly driven by the Pancake Syrup Pool farming and the Airdrop programme. We expect these selling pressures will subside soon because the Pancake Syrup Pool farming will end in June and the passing of UIP-5 means Airdrop holders now have an option to burn 50% of what’s remaining and receive UNW immediately.

So it is time now to look at how we may fine-tune and upgrade the existing tokenomics that serve better given where we are now and where we are heading.

What do we aim to address and achieve

The Proposal aims to primarily address the following concerns our community has

  • UNW and esUNW compete, with not enough incentives for UNW holders to convert to esUNW.

  • ULP and esUNW compete for Fee Distribution, without benefiting each other.

  • Traders, who may not be aligned with the long-term interests of the protocol, earn too much esUNW emission.

And we would like to address these concerns in a way that achieves a more coherent Tokenomics with the following goals

  • Protocol revenue directly drives both esUNW and UNW.

  • UNW and esUNW complement and create a positive feedback loop.

  • Emission is used more effectively to drive revenue higher.

creating the following Flywheel:

Proposal details

  1. Replace esUNW with UNW as the primary emission token,

  2. Migration of esUNW to “esUNW-v2”,

  3. Introduction of “Fee Vault”, and

  4. Introduction of “Hyper Event with Ladder” as part of token emission

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