Token economics is complex art for blockchain projects to master. FinNexus, the decentralized cryptocurrency options platform, understands this first hand, and is in the process of taking measures to refine FNX, the network’s native cryptocurrency.
FinNexus has issued a number of announcements this month, all with generating greater value for end-users in mind. The project is moving its decentralized liquidity entirely to SushiSwap from Uniswap, has undertaken a token burn, and has implemented a brand new mining mechanism to further incentivize network participants.
Hungry for Sushi
In order for FinNexus to optimize its decentralized liquidity offerings, it has moved solely to SushiSwap. Up until a few days ago, there were FNX pools on both Uniswap and Sushiswap, splitting liquidity between the two DEXs. This was a disadvantage to traders. By moving to one platform, the FNX user experience should improve by aggregating all liquidity and giving users greater insight into the actual price of FNX, as they do not have to rely on multiple trading pool ratios.
This liquidity pooling will not affect FNX offerings on centralized exchanges, with CEX trading maintaining its current position.
Burn Baby Burn
With only 4.47 percent of FNX tokens available to the open market, 22.3 million out of a total supply of 500 million, potential investors had been concerned that should FinNexus have changed its cryptocurrency distribution plan, a large amount of FNX may have been dumped.
To address this issue, the development team decided to take action. A serious debate took place on whether to implement a token burn or establish a community-controlled fund, which the token burn won. Based on this community decision, FinNexus has executed a massive burn of 292,601,955 FNX, about 60 percent of its total supply.
As a network governed by its community, the token burn proposal has been voted on by stakeholders in a completely transparent manner and carried out in investors’ best interest, mitigating their potential fears that a massive token dump could occur in the future. By reducing the supply side availability, increased demand for FNX should affect the cryptocurrency’s price more significantly, benefiting holders.
Perhaps the most essential addition to the FinNexus ecosystem is the new mining mechanism that has been available since January of this year. Launched on both Ethereum and Wanchain, the development team has added and combined USDT into the USDC liquidity pool. This new option allows USDT token holders to participate in the FinNexus economy for the first time, an important milestone.
As the largest and oldest dollar-backed stablecoin on the market, recently breaking a $30 billion market cap and regularly generating over $100 billion in daily trading volume, Tether will considerably strengthen the network by providing increased user access and capitalization possibilities. By offering a liquidity pair between FNX and two of the most popular stablecoins, FinNexus encourages users to hold both types of tokens and prevent a farming dump scenario that other platforms have seen from mismanaged staking incentivizes.
Right now, by contributing liquidity on the FPO (FinNexus Protocol for Options) platforms in combination with USDT/USDC and FNX, one can still earn up to over 1400% APY.
The Icing on the Cake: Hundreds of Thousand FNX Airdropped
To celebrate the new developments, FinNexus has launched a huge airdrop, with 1068 FNX being shipped off to the first 500 qualified addresses who join. The sum will be delivered in FPT-B tokens – the platform’s pool share tokens – and participants will have until early March to claim their rewards.
The campaign has been designed not to have a significant impact on circulation – the tokens are locked in the protocol for three months – and to maximize the visibility of theplatform, by targeting known defi users. Check it out If you already contribute liquidity to the FinNexus USDC/USDT pool, invest in the Hegic liquidity poos, participate in Curve Dao, hold YFII or have a whitelisted address connected with FinNexus AMA activities.
Moving on Up
FinNexus is creating a more inclusive financial ecosystem where users can easily buy and exercise options in a decentralized manner. With the possible market manipulation seen by centralized financial applications like Robinhood during the GME, AME, and NOK fiasco, decentralized markets are becoming more critical to users than ever. FinNexus is one of the first movers to democratize the options market, taking the power out of the hands of the elites and handing it to platform users. FinNexus currently offers BTC, ETH, LINK, SNX, and MKR options, and is working on adding more assets in the near future.
Disclaimer: The writer has a personal relationship with FinNexus and used this relationship to source insights for this article. The Daily Chain encourages you to carry out your own research before you make any form of investment and educate yourself about how to stay safe in the crypto space. This article is informational/educational and does not represent financial advice.