Nectar (NEC) is a utility token and deflationary governance, serving the exchange DeversiFi. NEC holders have voting rights in a financial obligation program, discounted transaction fees on DeversiFi, and an ever-evolving array of features designed to drive convenience, adoption, and value. NEC, DeversiFi and a broader ecosystem. DeversiFi is a professional, self-sustaining broker built for serious traders.
What is NEC token?
The NEC token was designed in 2017 and launched in early 2018 with the aim of incentivizing liquidity in markets traded on the Ethfinex digital asset exchange platform. Ethfinex’s original vision was to decentralize the platform in two parallel streams: Technology and Governance.
NEC is instrumental in accelerating and facilitating this transition. This document sets out the launch vision for Nectar 2.0, with a series of fundamental design improvements that will enable Nectar to achieve its goals.
Tokens are also used to make governance decisions through the community portal at Nectar. For example, NEC holders have been issued with a temporary voting token that they can then use to vote for new tokens on an exchange. There have been 14 such rounds of voting that resulted in over 40 new tokens being added to Ethfinex.
Token Design Goals
There are many important modeling and modeling considerations involved in token design. However, the following two criteria are at the forefront when designing the mechanisms and benefits in the new Nectar 2.0 model.
The design of the token should be simple. Crypto tokens add new economic impetus to any system with which it interacts. The guarantee of these new incentives is obvious, thus improving the efficiency of the token in achieving the goal. Token holders (in this case mainly traders) must be able to understand the model and calculate its value independently. Token design can still contain many aspects and benefits, but they must be complementary and independent, rather than interacting in complex ways.
Adjust the offer
Nectar’s primary goal is to amplify the network effects that exist around liquidity on exchanges, by tailoring the preferences of traders (especially liquidity contributors as traders). market maker) with an exchange. Exchanges were previously related businesses, with customers choosing to trade in the market or location where they had the best relationships and offers. Blockchain allows these incentives and relationships to be systematized, transparent, and immutable. This leads to the benefit of long-term loyal relationships with a particular platform like DeversiFi. Nectar is the vehicle representing this allegiance. Therefore, it must incentivize behavior that brings liquidity and trading volume to DeversiFi and must reward long-term traders and Nectar token holders when the platform succeeds.
Buy and burn model
The supply of NEC will decrease over time by adopting a buy and burn model. Once a week, NEC tokens will be purchased and used up to 50% of the revenue from the DeversiFi transaction fees, through a transparent and open auction mechanism. The purchased NEC tokens will then be burned. The percentage of revenue used increases as daily transaction volume increases, increasing the efficiency of these acquisitions. The redemption will be operated using a smart contract auction similar to the one developed and implemented by Melon Protocol.
What is NecDAO?
Nectar is a decentralized autonomous organization that aims to develop and manage the world’s largest network of decentralized exchanges, as well as promote the utility of the Nectar token and the development of DeversiFi. It will launch as one of the most funded DAOs, owning up to 17,500 ETH, with the initial amount being to dominate aspects of DeversiFi and Nectar. NEC holders will act as de facto members, voters in the DAO and can propose, deploy capital, and develop the DAO as they see fit. Developers, researchers, and other individuals in the wider world will be free to submit proposals to the DAO, which will then be reviewed by NEC holders.
The above detailed the evolution of NEC since its launch in February 2018, in terms of the dynamics for the change and transition to the new NEC 2.0 model. DeversiFi will add new utility to NEC, such as in the form of massive fee discounts and a commitment to share the growing exchange’s trading revenue to buy and burn unsettled NEC tokens. NEC 2.0 will switch to a deflationary model, instead of the previous inflation model, and DeversiFi will also burn 80% of its own NEC tokens ($24 million at current prices) to reduce the total supply. 17807 ETH has been pledged to NEC holders since Ethfinex exchange fees will be deployed into a necDAO, controlled exclusively by over 2000 powerful NEC token holders, in one of the largest DAOs in the world. gender.
You can see NEC prices here.
According to AZCoin News
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