By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

Deep Dive

Mainnet
SwapDEX
Terms
Definition

Basics

Total Supply
250,000,000 SDX
All coins that currently exist. The Total Supply increases with inflation and decreases with coin burning.
- Foundation
90,000,000 SDX
Coins that are locked in the company wallet of SwapDEX
- Unclaimed
14,000,000 SDX
Coins that have not been claimed so far and eventually get burned
= Circulating Supply
146,000,000 SDX
All coins that are publicly available and circulating in the market. (Treasury + Public Supply)
- Treasury
50,000,000 SDX
Coins hold by the treasury wallet to fund community initiatives and bounty programs
= Public Supply
96,000,000 SDX
Coins that are claimed and in the hands of the hodlers (company excluded)

Transaction Fees Split

For Liquidity Providers
50%
Percentage of all coins paid in transaction fees allocated to liquidity providers as reward
Burn
20%
Percentage of all coins paid in transaction fees that will be burned
Treasury
20%
Percentage of all coins paid in transaction fees to refund the community treasury
NFT Hodlers
10%
Percentage of all coins paid in transaction fees that will be allocated to the NFT fund and equally paid out to limited 200 SDX NFT hodlers (0,05%)

Frequently Asked Questions

If you read the FAQ and still have open questions, please join our social media channels and leverage the knowledge of our community members or admins.

Is SwapDEX inflationary?

Yes, SDX is inflationary; there is no maximum number of SDX. Inflation is designed to be approximately 10% annually, with validator rewards being a function of the amount staked and the remainder going to treasury. There is an ideal staking rate of 50% that the network tries to maintain. The goal is to have the system staking rate meet the ideal staking rate. The system staking rate would be the total amount staked over the total token supply, where the total amount staked is the stake of all validators and nominators on the network. The ideal staking rate accounts for having sufficient backing of SDX to prevent the possible compromise of security while keeping the native token liquid. An ideal staking rate of 50% stabilizes the network.

You can check the staking rate here: Substrate Portal/Staking

How does the inflation model look like?

The chart below shows the inflation model of the network. Depending on the staking participation, the distribution of the inflation to validators/nominators versus the treasury will change dynamically to provide incentives to participate (or not participate) in staking.

x-axis: Staking rate
y-axis: annualized percentage
Blue line: Inflation rewards to stakers
Green line: Staker rate of return

Example:
For instance, assuming that the ideal staking rate is 50%, all of the inflation would go to the validators/nominators if 50% of all SDX are staked. Any deviation from the 50% - positive or negative - sends the proportional remainder to the treasury and effectively reduces staking rewards.

How long will the claim be available?

The claim function has no set deadline at the moment but we will eventually change this and burn the unclaimed coins. In any case we will ensure to properly communicate all actions.

How does the treasury payout work?

Treasury payout is an automatic process:
If the Treasury funds run out with approved proposals left to fund, those proposals are kept in the approved queue, and will receive funding in the following spend period.
If the Treasury ends a spend period without spending all of its funds, it suffers a burn of a percentage of its funds - thereby causing deflationary pressure. This encourages the spending of the funds in the Treasury by SwapDEX's governance system.

Are the funds in the Foundation locked?

Yes, 90m SDX are separated into 10 wallets holding 9m SDX each. The funds are released in tranches when needed.

Why stake and why not stake?

Why stake?
-
10% inflation/year
- 50% targeted active staking
- approx. 20% annual nominal return

Up until now, the network has been following an inflation model. The ideal staking rate is not always 50%. Keep in mind that when the system's staking rate is lower than the ideal staking rate, the annual nominal return rate will be higher than 20%, encouraging more users to use their tokens for staking. On the contrary, when the system staking rate is higher than the ideal staking rate, the annual nominal return of will be less than 20%, encouraging some users to withdraw.

Why not stake?
Tokens will be locked for about 7 days after unbonding.
Punishment in case of validator found to be misbehaving (see s).

Tell me more about slashing?

You can acquire a full understanding of slashing by studying our deep dive: here

How many validators does SwapDEX have?

SwapDEX started with 300 open validator positions. The number of validator slots can be changed using SwapDEX's governance.

Who can apply for treasury funding?

Every SDX holder can apply for reasury funding. The funds held in the Treasury can be spent by making a spending proposal that, if approved by the council, will enter a waiting period before distribution. This waiting period is known as the spend period, and its duration is subject to the Governance, with the current default set to 6 days. The Treasury attempts to spend as many proposals in the queue as it can without running out of funds.

When a stakeholder wishes to propose a spend from the Treasury, they must reserve a deposit of at least 5% of the proposed spend (see below for variations). This deposit will be slashed if the proposal is rejected, and returned if it is accepted.