The DODO token economy is based on a dual token model, which includes the governance token DODO and the membership certificate vDODO.
The relationship between DODO and vDODO is as follows:
- If you pledge 100 DODO tokens, you can mint 1 vDODO.
- Redeeming vDODO for DODO tokens requires paying a "redemption fee".
Currently, DODO tokens have been issued on four main chains, including Ether, BNB, Arbitrum, and Aurora. The total token supply remains unchanged.
DODO is a governance token that is also endowed with certain functions. DODO token holders enjoy the following benefits:
- The right to create and vote on governance proposals (DIPs)
- Favorable quota for IDO and Crowdpooling investment
- A discount on transaction fees
vDODO, by contrast is a membership certificate, which is set up for loyal coin holders. vDODO holders enjoy all the benefits of DODO holders, as well as:
- A fraction of all transaction fees on DODO
- vDODO Membership Rewards
Pledging 100 DODO tokens allows you to mint 1 vDODO. vDODO tokens can be transferred or traded between users, and vDODO holders receive membership rewards.
Every new block, 12 DODO tokens are distributed proportionally to vDODO holders as a membership reward.
If you invite your friends to mint vDODO, you will receive an additional 10% of the invitee's membership reward.
Holding vDODO entitles you to receive a proportional share of 50% of the vDODO redemption fees paid by other users. The remaining 50% of redeemed vDODO tokens are permanently destroyed.
The transaction fee for trades conducted through DODO is distributed as follows:
- 80% to liquidity providers (LPs)
- 15% to repurchase DODO tokens and distribute it in the form of vDODO to vDODO holders
- 5% to the DODO Community Treasury
The DODO Team distributes its platform revenue around the 22nd of each month. 15% of the revenue will be repurchased through the secondary market and minted into vDODO to be directly distributed to all vDODO holders.
Transforming vDODO into DODO tokens, known as vDODO redemption, requires the payment of a proportional redemption fee. 50% of this refund fee will be immediately distributed to all non-redeeming vDODO holders in the form of vDODO tokens, and the remaining 50% are permanently destroyed.
The redemption fee is based on the "DODO Loyalty Index". This index is defined as follows:
(number of vDODO tokens to be withdrawn * 100) / (total DODO token supply)
The higher the Loyalty Index, the lower the refund fee. When the Loyalty Index is greater than 0.5, more than 50% of the circulating DODO tokens are staked and the redemption fee reaches the lower limit of 5% of the amount withdrawn.
As the Loyalty Index decreases, the refund fee gradually increases. When the Loyalty Index is less than 0.1, less than 10% of the circulating DODO tokens are pledged and the refund fee reaches the upper limit, 15%.
We can create a more exact formula, defining the Loyalty Index as
, and the redemption fee rate as