Tokenomics

DERI's Minting & Utilities

Minting

Ultimate Total Supply (Fully Diluted Total Supply) = 1,000,000,000 consists of a non-mining (preallocation) part of 400,000,000 DERI tokens and a mining part of 600,000,000 DERI tokens.

Non-mining part (preallocation)

Initial Total Supply = 400,000,000. This is the number of DERI minted at DERI's genesis block. These is the non-mining part and is distributed to the team, early investors and foundation (project treasury).

• DERI allocated to the team & early investors = 260,000,000 This is part of the initial total supply of 400,000,000 and is locked in a vesting vault with a 2-year linearly releasing plan. Please click here to check out the details of the vesting plan.

• DERI allocated to the treasury = 140,000,000 This is part of the initial total supply of 400,000,000 and is unlocked since day 1. It includes 40,000,000 DERI originally allocated to the treasury at the genesis and additionally, subsequently 100,000,000 DERI, which has been given up and transferred to the treasury by the operation team for fundraising and to promote a more decentralized and community-driven operations.

Note: The original Tokenomics allocates 360,000,000 DERI to the team & early investors and 40,000,000 DERI to the treasury.

Mining part

Total supply of the Mining part = 600,000,000. This is the number of mined DERI after all the mining tokens are mined out (in decades).

Currently, the mining rate of DERI is around 0,8M per week, including 4 parts:

• Liquidity mining in trading pools by providing base tokens

• Liquidity mining with the DERI-BUSD Cake-LP staking

• Liquidity mining with the DERI-USDT SLP staking in Sushiswap's Onsen pool

In summary, the current Total Supply is 400,000,000 + DERI minted throughout mining. This is the number of DERI that have been minted so far, including the initial total supply (400M) which is also displayed as"Max Total Supply" on etherscan. This number is increasing as the DERI mining continues. Please check the etherscan page for the up-to-date value.

Utilities & Use Cases

Governance Like in other DeFi projects, the community ownership and governance system are based on the Protocol token, DERI. In practice, this means the significant decision-making of the protocol and the tokenomics will be carried out by voting per DERI.

Privilege We have defined a new type of value basis of DeFi protocol tokens, Privilege Token, which is different from the common types such as governance tokens, fee tokens, or security tokens. DERI is a privilege token means people in the Deri ecosystem need to stake DERI to obtain some privileges during the Deri trading business.

Please note privilege token is different from governance token. Governance token represents the power of governing the community or decision-making of the protocol (e.g. revising rules). Whereas privilege token is to grant a user some privilege during the business activity. As an analogy of a hotel, a governance token lets the holder participate in the hotel management; whereas a privilege token is like the hotel's VIP card, giving the holder access to the hotel's advanced services.

Specifically, DERI grants users the following privileges:

• Liquidator qualification: with Deri Protocol, position liquidation is decentralized and open to qualified users. Since liquidation is riskless profitable, while we encourage anybody to participate in liquidation, for some of the trading pools we require participants to stake DERI in the liquidator qualification pool and his/her staking amount has to be no less than the average level.

• VIP transaction fee rate: going forward, a rule of differentiated transaction fees will be introduced per traders' DERI staking in a specific pool.

As the Deri business activities grow, we will grant a series of privileges associated with different scenarios, to promote a prosperous ecosystem.

What are the Smart Contract Addresses for DERI token?

The DERI token characterized by multichain support. It is available on the following networks with the following smart contract addresses:

Ethereum: 0xa487bf43cf3b10dffc97a9a744cbb7036965d3b9

Arbitrum: 0x21e60ee73f17ac0a411ae5d690f908c3ed66fe12

zkSync Era: 0x140D5bc5b62d6cB492B1A475127F50d531023803

Linea: 0x4aCde18aCDE7F195E6Fb928E15Dc8D83D67c1f3A

Scroll: 0xa3c5293892f112C834ADa46219973C5e4Ac23bA0

Polygon zkEVM: 0x360CE6EeCDF98e3851531051907e6a809BF6e236

BNBChain: 0xe60eaf5A997DFAe83739e035b005A33AfdCc6df5 Polygon: 0x3d1d2afd191b165d140e3e8329e634665ffb0e5e HECO: 0x2bdA3e331Cf735D9420e41567ab843441980C4B8

Burning Mechanism

Following DIP 15's vote and approval:

• 40% of the trading fees will be collected as "protocol fees" to regularly buy DERI from secondary markets to be burned to deadlock address.

• 40% of the trading fees will be sent to the treasury to help maintain and grow the protocol.

• 20% of the transaction fees will be awarded to liquidity providers.

The burning program will be carried out differently for these two types of collected protocol fees.

• For the collected B0 token

• For the collected DERI token

Due to DERI token’s multi-chain nature, the implementation of the burn-to-deadlock mechanism cannot be just a simple transfer to a deadlock address. The tricky part is, while DERI is Ethereum-native, the protocol fees collected to burn DERI might be on non-Ethereum networks, in which the DERI tokens are essentially wrapped ones. To burn a wrapped token, you have to transfer it to the original network and burn it there. It is very easy to understand with this analog: if a Binance-Peg Ethereum Token (ETH) is “burned” on BNB Chain, it does not mean an ETH is burned — an ETH has to be burned on Ethereum network.

Here we explain the procedure taking the DERI-burning from BNB Chain as an example. BUSD is the B0 token on BNBChain.

For the collected BUSD

The key component of the burning mechanism is a set of two pairing “burner” smart contracts on BNB Chain and Ethereum, with the same address. Let’s call them Burner1 (on BNB Chain) and Burner2 (on Ethereum).

Burn1: https://bscscan.com/address/0x2e225Dacc4c2b843BB8a6b2215b9008f922D06bd

Burn2: https://etherscan.io/address/0x2e225Dacc4c2b843BB8a6b2215b9008f922D06bd

DERI tokens are burned as follows.

1. Call the buyAndBurnDeri function inside the protocol fee collector to buy DERI from DEX and transfer them to Burner1 on BNB Chain.

2. Burner1 is coded to have one function only: uses the DERI bridge to transfer the DERI tokens from BNB Chain to Burner2 on Ethereum. Please note that Burner1 and Burner2 have to be deployed at the same address on the two networks, since the DERI bridge only supports same-address bridging.

3. Once the DERI bridge signs the transfer, Burner2 can claim the transferred DERI tokens.

4. Burner2 is coded to have one function only: send the claimed DERI tokens to the deadlock address.

For the collected DERI

There will be no buying procedure, the DERI tokens will be burned directly. The procedure is very straightforward, calling the function “collectProtocolFee” will send the accrued protocol fees (DERI) directly to Burner 1 on BNBChain. Anybody who wants to experience the fun of “burning DERI” can go ahead and call this function yourself.

The next steps are the same as "For the collected BUSD" step 2–3–4.

All DERI tokens burned with this mechanism can be found in this DEAD address.

Protocol Fee Manager Address:

Arbitrum 0x9518dC115Bf7AbD278434bf1b55B6EB9C2ba7D61

Linea 0xB22C5A9e69B3e46978cecaA70c54f0063B90D2f6

Scroll 0x5Fe2C482D03c1ECfAd01446817a154BFBCC56C33

zkSync 0xDECA7b795ae7f7c3Cd41e3bC790949e3a53ED308