Tokenomics 101
Token Glossary
CXD: The tradable CortexDAO token, currently available on Curve.
vlCXD: The locked CortexDAO token.
idxCVX: The tradable Convex Index token.
Token Utility
Locking the CXD token for vlCXD grants access to:
Fee distribution. A portion of protocol revenue is distributed to CXD lockers.
Governance. Vote to update, change, and revise protocol system parameters.
Boosted Index returns. Holding CXD + any CortexDAO Index = increased Index APR!
We designed the CortexDAO tokenomics to foster DAO growth and reward CXD lockers, those most committed to the long-term vision of the protocol. We set four goals to maximize value for CXD lockers:
Encourage and reward DAO participation.
Encourage CXD buy pressure.
Encourage locking.
Decrease sell pressure.
Deflationary Token Flywheel
A user who purchases and locks CXD can earn idxCVX. Similarly, a user who purchases and stakes idxCVX can earn CXD. This creates tokenomics that are sustainable and deflationary.
Locked CXD earns idxCVX from fee distributions. Staked idxCVX earns CXD rewards.
Users buy CXD.
Users lock CXD to earn vlCXD. This reduces the circulating supply.
Users earn idxCVX from fee distribution.
Users stake idxCVX to earn CXD.
Users lock their newly earned CXD to repeat the cycle.
vlCXD Token Utilities
Fee Distribution
The Convex Index collects a 15% fee on harvested rewards as the main revenue stream.
A portion of revenue is used to cover protocol expenses such as deployment, staking, harvesting, and claiming.
All profits are then distributed to vlCXD holders as 3CRV.*
Users can redeem 3CRV for USDC, USDT, or DAI from Curve’s 3pool.
*Once the Convex Index token (idxCVX) is launched, profits will be distributed in idxCVX.
Boosted Index Rewards
Once idxCVX is released, vlCXD will boost idxCVX staking rewards.
Users buy idxCVX to gain exposure to the Convex Index.
Users buy and lock CXD to earn vlCXD.
Users earn CXD from boosted idxCVX staking rewards.
Governance
vlCXD will be used to create and vote on DAO proposals. A soon-to-be-released DAO constitution will define the proposal process.
Additional Resources
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