Tokenomics

DERI's Minting & Utilities

Minting

Ultimate Total Supply (Fully Diluted Total Supply) = 1,000,000,000 consists of a non-mining (preallocation) part of 400,000,000 DERI tokens and a mining part of 600,000,000 DERI tokens.

Non-mining part (preallocation)

Initial Total Supply = 400,000,000. This is the number of DERI minted at DERI's genesis block. These are the non-mining part and are distributed to the team, investors and foundation (project treasury). Among them, 360,000,000 are locked for the team and investors. See below for details.

  • DERI allocated to the team & investors = 360,000,000 This is part of the initial total supply of 400,000,000 and is locked in a vesting vault with a 2-year linearly releasing plan. Please click here to check out the details of the vesting plan.

  • DERI allocated to the treasury = 40,000,000 This is part of the initial total supply of 400,000,000 and is unlocked from day 1.

Mining part

Total supply of the Mining part = 600,000,000. This is the number of DERI after all the mining tokens are mined out (in decades).

Currently, the mining rate of DERI is around 1M per week, including 4 parts:

  • Liquidity mining in trading pools by providing base tokens

  • Liquidity mining with the DERI-BUSD Cake-LP staking in Pancake's Syrup pool

  • Liquidity mining with the DERI-USDT SLP staking in Sushiswap's Onsen pool

  • Mining by Brokerage (0.01DERI per contract or distributed per volume weight if breaching the hourly upper limit)

In summary, the current Total Supply is 400,000,000 + DERI minted throughout mining. This is the number of DERI that have been minted so far, including the initial total supply (400M) which is also displayed as"Max Total Supply" on etherscan. This number is increasing as the DERI mining continues. Please check the etherscan page for the up-to-date value.

Utilities & Use Cases

Buy-Back Per DIP1's voting result, 20% of the transaction fee will be put into a DAO fund, which is to regularly buy back DERI from the secondary market and burned (i.e. recycled to be mined again).

Governance Like in other DeFi projects, the community ownership and governance system are based on the Protocol token, DERI. In practice, this means the significant decision-making of the protocol and the tokenomics will be carried out by voting per DERI.

Privilege We have defined a new type of value basis of DeFi protocol tokens, Privilege Token, which is different from the common types such as governance tokens, fee tokens or security tokens. DERI is a privilege token means people in the Deri ecosystem need to stake DERI to obtain some privileges during the Deri trading business. This is similar to that a Filecoin miner has to stake FIL to participate in the storage mining: i.e. the mining privilege is granted through FIL staking.

Please note privilege token is something different from governance token. Governance token represents the power of governing the community or decision-making of the protocol (e.g. revising rules). Whereas privilege token is to grant a user some privilege during the business activity. As an analogy, governance token is like equity share of a hotel, with which one can participate in the hotel management's decision-making; whereas privilege token is like the hotel's VIP, with which one can enjoy the hotel's special services.

Specifically, DERI grants users the following privileges:

  • Liquidator qualification: with Deri Protocol, position liquidation is decentralized and open to qualified users. Since liquidation is riskless profitable, while we encourage anybody to participate in liquidation, for some of the trading pools we require participants to stake DERI in the liquidator qualification pool and his/her staking amount has to be no less than the average level.

  • VIP transaction fee rate: going forward, a rule of differentiated transaction fees will be introduced per traders' DERI staking in a specific pool.

As the Deri business activities grow, we will grant a series of privileges associated with different scenarios, to promote a prosperous ecosystem.

DERI on three chains

Please note that DERI is being mined on 3 networks: Ethereum, BSC and HECO. However, since DERI was created as ERC20 token on Ethereum, all the DERI on BSC and HECO are transferred to the two networks from Ethereum through Deri Bridge. The DERI on BSC and HECO is mirrored by the frozen DERI in the wormhole on Ethereum. That is, every DERI on BSC or HECO is corresponding to one DERI frozen in the wormhole on Ethereum: https://etherscan.io/address/0x6874640cC849153Cb3402D193C33c416972159Ce