We hope you enjoyed reading the tokenomics Part 1 where you learned about the first phase of the Citeazens’ economy — The LiquidiTEA.
Today let’s discuss another important topic : our DEX and DAO VC mechanisms, and how they will be at the heart of Citeazens’ ecosytem!
Citeazens’ Progressive DEX : a new approach in Decentralized Finance
Citeazens by TeaDAO is first and foremost about bringing new ways of dealing with Web3 economy. To that matter, it quickly became obvious we could not reach such a goal without a new, sustainable system in which all Citeazens, partners and infused projects could thrive.
For starters, we won’t deposit the initial liquidity (2M$ initial liquidity composed of 2 500 000 TEA, coupled with the same $ amount in AVAX) on an external Decentralized Exchange (DEX) on Avalanche. Because… We will have our own!
But what’s unique here, and what we like to call a “Progressive DEX”, is that the model we developed in the last 2 years is nowhere to be seen neither on Avalanche nor across all chains.
The explanation of the DEX, its fee structure, and its exclusive model will be fully developed in part 3 / 3 of this Medium series.
Here, let’s focus again on the TEA token, where we will have its liquidity stored and locked on our DEX, so we won’t give the trading fees to another project or to users outside our citeazens.
On fees : distribution matters for our citeazens.
Sometimes philosophy is about numbers : how you use them, and where you put them. In Citeazens by TeaDAO, we’re erasing greed from the picture, thanks to our Progressive Dex approach.
Why is it important?
Because numbers have always been there, but not used properly. Let us explain :
▶️ If we had our liquidity on another DEX, every user would have on average 0.3% trading fees to pay whe he/she trades. That’s plainly standard in DeFi.
Included in this 0.3% are the rewards given to LP providers : 0.17%.
These 0.17% — again, standard in the field of DEXs — will also be there for TEA-USDC LP providers in our own Dex.
The difference relies on the 0.13% left.
▶️ If we had our liquidity on another DEX, this 0.13% would be lost for users (as it needs to buy back the native DEX token to counter the tokens given as liquidity incentives).
Here, thanks to Citeazens’ own Progressive Dex — these 0.13% on the TEA token will be used as follows:
▶️ 0.05% are directly added to the LiquidiTEA to grow it faster — and so, provide more oil to the Citeazens’ engine, and consistently more nodes/ Real Estate rewards and de facto = more external rewards given to the citeazens.
▶️ 0.03% will be used as referral rewards — so, back to the citeazens directly.
▶️ 0.05% will be used to buy back TEA for the DEX incentives.
As you can see, the fees generated by our own Progressive DEX will serve as a catalyst to boost Citeazens’ core feature (LiquidiTEA), while adding extra rewards for all our citeazens, and extra value on the TEA token.
Our complete Progressive Dex incentives will be detailed in part 3 / 3 of this Medium series.
Now let’s talk about another great feature for Citeazens : the DAO VC!
DAO VC : power to all citeazens !
The DAO VC, thanks to the power of a community, can invest in early stages projects. With the team and Citeazens’ knowledge and network, the DAO VC will propose high quality projects to be voted on by the DAO if interested to participate in seed/private rounds.
What’s even better, is that citeazens can not only vote for selected projects raising funds — with a focus on sustainability, but also propose some they might know. After a successful vote, we will ensure full due diligence and KYC/KYB of selected projects. There will be a specific place for citeazens to participate in the DAO Due diligence.
Each citeazen will have access to the DAO VC allocation, and will see a 5% fee on the allocations — split in 2:
▶️ 2.5% will be directly added to the LiquidiTEA to grow it faster — and again, develop the engine.
▶️ 2.5% will be used as DEX incentives, that will be described in part 3 / 3.
With that additional aspect of the Citeazens’ economy will come to a full dashboard — including your status as a Citeazen (Status will come in another Medium series).
We hope you appreciated this second part of the tokenomics and are excited by the third one coming by the end of the week — with a detailed explanation of the DEX unique structure.
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