DeFiner 2.0 FIN Tokenomics

FIN token is the nucleus within the DeFiner Ecosystem

With the successful launch of the DeFiner HODLer market, phase I of DeFiner 2.0, it is a great opportunity to renovate our FIN tokenomics. The enhanced FINconomy will have more features to further benefit our FIN token holders and grow a loyal and committed community. 

The current unissued POP Mining and LP Mining pool (33.1%) FIN token will be reserved for future strategic investment purposes which means no new FIN tokens will be issued to the reward pool. This will efficiently prevent the death spiral problem most DeFi projects are facing nowadays. Moreover, we want to increase the usage of FIN tokens and create a deflation environment for FIN token holders. Let’s take a look at the future of DeFiner 2.0 FINconomy. 

What is $FIN used for?

$FIN serves as the DeFiner protocol utility and governance token. $FIN holders can submit proposals for configurations across all DeFiner protocols, earn recurring stable coin income by staking, and participate in governance to decide the direction of the protocol. Users can also create a FIN LP pair with $FIN and participate in the liquidity mining to earn more $FIN.


Utility

$FIN serves as a utility token within the DeFiner protocol. Users can use $FIN to propose configuration changes to the lending market. DeFiner requires a certain threshold of FIN before users can submit a configuration change proposal.

For example, Project A has created a HODLer Market for its native token, ABC, at a 20% initial loan to collateral ratio. As time progresses, the trading volume increases significantly, and more exchanges list token ABC. Project A will need to improve the borrowing ability of token ABC, which can be done by submitting a proposal to change the collateral ratio from 20% to 40%. To submit the proposal, the DeFiner protocol can have a minimum requirement of a $10,000 FIN token deposited in one of the FIN HODLer Markets with a one-year lock-up period.

Staking

Users who stake $FIN are entitled to our revenue redistribution. The longer $FIN is staked in the pool with a fixed term, the more revenue holders are entitled. Such revenue includes HODLer market creation fees, interest reserves, and liquidity mining reserves from each HODLer market. 

For example, the DeFiner protocol gains revenue from market creation, interest reserves, and liquidity mining reserves. A portion of reserves is used to reward FIN HODlers. Let’s assume "1 Year FIN HODLer Market" with $500,000 worth of  FIN token is deposited and $100,000 stables are allocated to reward the token holders. In this scenario, the FIN holder who deposits this pool will earn roughly 20% annual return recurring revenue in stables. In this way, FIN holders are efficiently encouraged to hold and earn long-term gains. 

Governance

Users can participate in the DeFiner protocol governance by owning $FIN. The decision includes protocol proposals, roadmap priorities, and profit distribution mechanisms. Users gain voting power by staking $FIN. The longer the $FIN holder's stakes in the pool, the more voting power they are entitled to. The veFIN token is a voting governance token for DeFiner. veFIN is issued to FIN holders who deposited to a HODLer market. Based on the amount of FIN token and the deposit period, users will receive different amounts of veFIN. 

Liquidity Mining

$FIN can also be used to generate the $FIN - LP token. FIN-LP pool is created on decentralized automatic market-making DEXes to ensure sufficient liquidity for FIN trading. $FIN token holders will be rewarded by participating in the $FIN farming pool. Liquidity providers will be entitled to the $FIN liquidity mining, which is purchased back by treasury revenue. By participating in FIN-LP, users will also gain transaction fees. 

Revenue and Distribution 

DeFiner's mission is to help token issuers grow a loyal and committed community. The protocol will generate revenue in several ways: HODLer market creation, interest reserve, and liquidity mining reserve. 

Let's say that Project A wants to create a HODLer market for its native token. By initiating the contract, the creator will auto-send a fixed amount of the blockchain native coin to the DeFiner protocol. The initial target is to get $150 worth of native coins for each market created. When Project A starts to run a liquidity mining campaign by rewarding its users with their native token, ABC, the DeFiner protocol will share a percentage of the mining rewards. Since ABC token HODLer can borrow against their locked position and pay interest, the protocol will also share a percentage of the interest paid. The percentage of reserve and the amount of market creation fee will be decided through the DeFiner DAO governance system.  

The revenue generated will be distributed into two separate pools: the Treasury Pool and the Reserve Pool. The Treasury pool is used to cover development expenses and protocol maintenance. DeFiner will use the remaining fund to purchase back $FIN from the secondary market which will be further used to provide liquidity mining rewards for those FIN-LP holders. The Reserve pool will be used to engage and grow the community through the HODLer market staking program. It will be providing stable and recurring revenue to our FIN token holders which will encourage long-term holding behavior and build a loyal community. The percentage split between treasury pool and reserve pool and allocations will be decided through the DeFiner DAO governance system.

 

Learn More: 

DeFiner 1.0 Tokenomics Overview

DeFiner 1.0 Tokenomics details