Partnership Pools and Spindex Emission Sustainability
Hello Spintop Community,
Spindex’s partnership pools are coming closer to launch next week, we would like to emphasize why it is essential for us and how it will work.
Many SPIN holders and farmers wonder about the sustainability of yields on liquidity provision. In a nutshell, yes, it will be sustainable. Here’s how:
As many of you already know, Spindex aims to become the liquidity solution for blockchain gaming. The twist here is that we will be pooling SPIN with partnered projects’ tokens, whereas typically, on DEXs, liquidity pools almost always contain pairs with stable coins or chain-specific native ones (BUSD or BNB in BSC case). This will allow us and the partnered project to deepen total liquidity on the blockchain without pushing any token other than ours. To deepen pools further, we will reward those staked LP tokens with SPIN tokens.
As our readers may notice, the concept above is not sustainable at all. Because Spintop will be rewarding partner projects’ liquidity deepening, we will ask for partnered projects’ tokens in exchange to reward single staking SPIN Pools in Spindex. Hence, the model will both increase liquidity and utility for SPIN.
The good news is that we will be launching our first Partnership Pools by the end of this very month!
If looked through on our whitepaper, SPIN tokenomics is engineered to mint fixed emission per month for 60 months from the TGE (after 60 months, Spindex will be able to mint the amount burned by SPIN utilities). This fixed emission brings out two critical outcomes:
- The emission will be shared upon all farms and pools, meaning as more and more partnership pools will be introduced, SPIN rewards will dilute existing ones while Partner Token rewards will increase.
- Emission is fixed per month, whereas TotalSupply increases with token unlock and emission. If we define Inflation =(Emission/TotalSupply); It will decrease each month aggressively.
To sum it up, the inflationary effect from SPIN emissions will decrease day by day while rewards from partnered projects will increase. It will eventually reach an equilibrium as we push forward more partnership pools.
Stay tuned for further developments!