The world of decentralized finance (DeFi) has seen significant advancements since the launch of the ICE token in 2021. One of our developments in this sphere is the introduction of the WAGMI token, a governance token designed to steer the protocol’s development, assets, and overall trajectory as well as grow in value over time as the protocol grows.
The WAGMI token is not just a digital asset; it is a tool for governance. It empowers its holders with the ability to influence the direction of the protocol. This democratic approach to decision-making is a cornerstone of the DeFi movement, ensuring that the protocol’s path is determined by those who use and benefit from it.
Tokenomics
The tokenomics of the DeFi landscape have evolved significantly since the launch of the ICE token. To ensure that the necessary tools are in place for WAGMI to become one of the top exchanges in DeFi, a tokenomics revamp was deemed necessary. As part of this revamp, a fixed exchange ratio was established: 1 ICE is equivalent to 69 WAGMI. With an ICE supply of 69 million and a WAGMI supply of 4,761 million, this ratio will be maintained for three months following the inception of WAGMI.
During this three-month period, a migration from ICE to WAGMI will be operational, allowing users to exchange their ICE tokens for WAGMI at the fixed ratio. However, once this period ends, the swap feature will cease to function. It’s worth noting that the ICE liquidity is not owned by the protocol, and emissions for sustaining liquidity were discontinued a few months ago.
As we mentioned earlier, we’ve deployed WAGMI on 9 networks: Ethereum, Binance Smart Chain, Fantom Opera, Avalanche, Polygon, Arbitrum, Optimism, zkSync Era, and Kava.
Our team has also developed a bridge UI for easy WAGMI swapping between these networks. However, a bridge between zkSync and Kava will be enabled at a later date.
The protocol will employ various methods to acquire POL to endure future cycles and maximize fee generation for all WAGMI token holders.
Voting
WAGMI token holders can use their tokens to vote on the Snapshot page, with the proportion of protocol voting rights determined by the number of tokens an individual holds. This mechanism ensures that the protocol’s direction is truly in the hands of its users.
Wagmi protocol fees
In addition to making a user fully part of a protocol, our project offers a range of services that generate fees. These fees are used to buy back WAGMI tokens from the open market and send them to a burn address, thereby applying never ending buying pressure on the token.
The sources of these fees include:
- non-protocol owned concentrator contracts liquidity
- leverage contracts
- extra trading functionality
- protocol-owned GMI token fees
Conclusion
In conclusion, the WAGMI token represents a significant step forward in the evolution of DeFi. By empowering its holders with governance rights and offering a range of fee-generating services, it is poised to play a crucial role in the future of decentralized finance.