A Better Tokenomics with Value Flow & Utility

A New Tokenomics with AMM value flow and Utility

Singular has already minted all the tokens that will ever exists 200M token on day one to mitigate the problem of future inflation. Singular believes that inflation is problematic for a variety of reasons and should always be kept as low as possible to ensure the longevity of the project. So how do we create a deflationary token?

-25% of token sold to raise capital in the treasury

-25% given to the project DAO treasury to manage-25% given to the team and founders-25% placed into a Reward Pot/Airdrops

In the first year, 25% of Airdrops would be given away as rewards to LP’s in pools containing the SD token.

LP’s are used to receiving rewards and so for the first year we will transfer rewards to LPs without minting any new tokens. In other words, there’s a token transfer to the market but not inflation from new tokens.

Revenue Model

Singular will add a base protocol fee on all transactions. In this example we’ll set it as 1/3 of all swap fees are sent to a protocol fees wallet. LP’s would accept that 1/3 of fees are retained by the platform in exchange for a better funded and supported platform and other benefits discussed below. Note that this means fees are being collected in a mix of tokens including Stablecoins and high value tokens such as WETH.

Revenue Distribution

The SD protocol fees wallet is distributed along the following lines.

1/3 goes to the treasury as revenue.

1/3 is paid out as rewards to LP’s in SD pools. This provides a passive income in a mix of tokens to Sd token holders who have their SD staked on the AMM platform.

1/3 is used to buy back SD tokens on the open market. Those tokens are burned to reduce overall supply of ABC tokens in the market.

For revenue we will add a base protocol fee on all transactions. In this example we’ll set it as 1/3 of all swap fees are sent to a protocol fees wallet. LP’s would accept that 1/3 of fees are retained by the platform in exchange for a better funded and supported platform and other benefits discussed below. Note that this means fees are being collected in a mix of tokens including stables and high value tokens such as WETH. What Makes SD different than Most tokenomics Today?

1. A gradual shrinking supply of tokens leading to a deflationary effect on the market. Deflation results in a positive force being applied to the token price.

2. Token holders earn rewards (or Project backed NFTs) for the first year but even after that, there is a strong incentive to continue to hold and stake tokens since that ensures a continued passive income from fees in all pools. Since tokens are frequently being bought and burned then these fee rewards to each SD token concentrates over time, increasing reward payouts over time to each SD token. This also creates a positive price force on the token.

3. The DAO and team benefit in exactly the same way from other token holders and so are equally incentivized to hold and stake tokens.

Overall the tokens in the market become more scarce, more revenue generating and more valuable over time, for as long as the project is able to maintain liquidity and volume. This is a direct link between performance and token price. Crucially, not only to token holders increase earning potential over time, the project is revenue generating and better positioned to succeed and expand even in bear markets.