Last but not least, welcome to the third part of this medium series explaining the tokenomics and Business model!
This last part is essential to sum up two things:
▶️ All the mechanics around the $TEA token
▶️ The economic roadmap for Citeazens
A well balanced economy :
Reminder: $TEA will have a max supply of 50 000 000 tokens, released within 2 years.
The initial token circulation will be 4 375 000 (8.75% of total supply), including 2 500 000 tokens locked in liquidity.
This leading to an initial marketcap of 1 750 000$ , and a fully diluted value of 20M$.
First, let’s see how $TEA is getting distributed over time (2 years of distribution) through Staking, farming, and bonding.
Regarding the liquidity, we provide an initial liquidity pair (TEA-AVAX) worth 2M$.
As you may know, by being paired with AVAX only, $TEA will be 100% exposed to the crypto market and to AVAX volatility.
As we want to create a sustainable model, we also want to reduce this dependency on external volatility.
This is why we will incentivize (the 2 first years) the TEA-USDC pair for our Citeazens.
Our target is at the end of the 2 years distribution, to have the:
▶️ 75% of the liquidity in TEA-USDC, and 25% in TEA-AVAX, in order to have exposure to the crypto market, but limited
▶️ Enough volume on $TEA to keep a reasonable incentive for TEA-USDC liquidity providers.
These 2 objectives will be monitored every month through the Citeazens financial report.
As explained in tokenomics 1 / 3 here , we will have 3 pools of staking (locked 1 month, 3 months, and 6 months) with fixed TEA rewards at the end of each period (APR respectively 4%,6% and 9%) with a maximum capacity for each one.
If all 3 pools are not 100% filled, the remaining tokens will be used for 2 things:
1 — Bonding incentives
Each month (for the 2 first years), there will be a possibility, for a limited amount of $TEA tokens, to buy them at a 5% discount through bonding. The $TEA tokens acquired this way will be vested for 7 days before reception.
The corresponding bonded amount (of stablecoins) will be splitting according to this:
- 82% will be added in the LiquidiTEA (and grow the Citeazens engine and rewards in ETH, AVAX, FLUX and USDC)
- 3% will be added in the marketing vault
- 10% will be added in the team vault
- 5% will be given to the VCs allowing the private sale of $TEA, with the condition of still having their tokens. If they don’t, these 5% will be topped on the LiquidiTEA part.
75% of the amount of remaining tokens from the reward vault will, each month, be added to these $TEA.
2 — External DEX incentives
Each month (for the first 2 years), there will be $TEA available to reward liquidity providers in non-native tokens in order to start building the progressive Dex. The initial and fixed amount is limited in this 2-years period.
25% of the remaining tokens from the reward vault (from staking) will, each month, be added to these $TEA in order to incentivize deeper external liquidity — building on Avalanche, the first pair to build will be AVAX-USDC.
Regarding these external DEX incentives, they will from time to time be subject to vote.
As an external project wants to add liquidity and make its token tradable on Citeazen’s DEX, we would initiate a vote to:
▶️ Incentivize their liquidity pair for one month and then,
▶️ After a month, we stop the incentives, and now,
▶️ With the new token being tradable on our DEX, the same trading fees will apply:
▶️ 0.17% are given as rewards to LP providers
▶️ 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.
With this model, and every new project on the DEX, we slowly and steadily get more LiquidiTEA (and so, more real yield for $TEA stakers) and more incentives (directly bought back and not emitted through inflationnary rewards) to external pairs as AVAX-USDC.
This model for what we call the “Progressive DEX” is working totally differently from others as:
Where the other emit inflationary rewards tokens and use trading fees to buyback it, they have a dependency on volume to maintain an equilibrium;
We do the opposite: we buyback tokens to use them as incentives, creating an equilibrium there on the DEX.
The fix amount of DEX incentives have their counterparty with the continuously growing amount of ETH, AVAX, FLUX and USDC given as rewards for $TEA stakers.
We hope this explainer medium series clarified everything about the $TEA tokenomics and features — we are always available on our socials to answer any question: