Over the past two weeks, we have asked for your feedback on proposals to the LON Tokenomic model. Based on your feedback, we made changes to the proposals and pushed it out for voting.
In this article, we want to cover voting results and the changes we will be implementing based on said results.
More specifically, the TIP proposals that were voted on were as follows
- TIP24 - Build Protocol owned liquidity
- TIP25 - Adjust reward allocation for trade mining
- TIP26 - Change the buyback mechanism
141 votes were cast for all 3 proposals in total, with LON holders who voted holding more than 1 Million LON. These are the results of the vote
- Pause current liquidity mining and build protocol owned liquidity
- Referrers receive 5% of the trade mining pool, down from 15%. The additional 10% will be allocated to traders, giving traders a reward allocation of 45%, up from 35%.
- Increase amount required to execute buyback
Based on your votes, we will be implementing the following changes
Building a protocol owned liquidity
From 9th Dec 2021, 12:00 PM UTC+8, current liquidity mining will stop. We will transition to build a Protocol Owned Liquidity (POL) based on current funds in the treasury and network fees. POL will be used to provide liquidity for LON through an AMM pool, providing price discovery, trading depth and capturing transaction fees.
|Pair Token||Fund Source||Amount|
|LON||Remaining amount from liquidity reserved||2,690,190|
|USDT||Fee collected||per LON pair amount|
Users who are currently taking part in liquidity mining can withdraw your tokens from 9th Dec 2021, 12:00 PM UTC+8. This can be done via the LON Dapp (on imToken app) or from the liquidity mining page. Please connect your wallet and withdraw your funds accordingly.
Where can you allocate this fund? We would like you to consider staking your LON instead! At its highest, APY was at 49.1% this year for staking.
Adjust reward allocation for trade mining
Based on the voting results for TIP 25, referrers will receive 5% of the trade mining rewards, down from 15%. Traders will receive 45% of trade mining rewards, up from 35%. These changes will take place starting from the 8th phase of trade mining.
Rest assured that nothing else will change and you can check the trade mining page for more details after the changes are in effect. You can still refer new users to Tokenlon and receive LON as rewards!
Change the buyback mechanism
Due to high gas fees on the Ethereum layer 1 network, buybacks have been triggered at a much slower rate. This has led to trade mining pools and staking pools receiving fewer rewards, as the bulk of the rewards are stuck in the pool of transaction fees.
Based on the voting results for TIP 26, we will carry buybacks under the following circumstances
- Change buyback period from 1 day to 3 days
- Limit slippage tolerance to 3%
- Limit maximum buyback amount to $100,000
- Make buyback based on transaction fees at any point in time
You can continue to trigger buybacks on the buyback page. We will periodically subsidize users on the cost of gas fees in triggering buybacks.
The Tokenlon team will continue looking for ways to improve the buyback mechanism that is low in cost and decentralized.
If you have any questions on the changes to be made to LON Tokenomics, please reach out to us on our Discord channel. Our team will answer your questions
Thank you for your support and we look forward to improving the Tokenlon network with you on this journey.