TL:DR

• The native utility of the DexToro ecosystem is the DTORO token

• DTORO staked rewards have a lock-up period of one year

• Traders can earn additional DTORO if they trade on DexToro

As we continue our section explaining and clarifying the DexToro ecosystem, we've reached the stage where we must talk about DTORO.

DTORO is the utility token powering the DexToro platform. It's designed to enable the ecosystem's growth through a systematic approach to avoiding token inflation.

With the number of DTORO staked surpassing 21 million and Trading Rewards Script being nearly ready to deploy, we must talk about DTORO. Existing and upcoming members need to know the ins and outs of DTORO and its role in our ecosystem.

The DTORO Token

DTORO is an ERC20 token standard launched on Optimism to perform three functions on DexToro: staking, governance, and trading rewards.

0x1CeF2d62aF4cd26673C7416957CC4Ec619A696a7 is the official contract address of DTORO

Rundown of DTORO inflation mechanism

DTORO was launched with an initial token supply of 25,000,000, and the number of tokens is set to increase through a predetermined inflation model. To strike a balance between new emissions and the current price of DTORO, we've created an inflation emission model that will lead the total max supply to 80,527,792.

It allocates funds through a percentage split of 20/20/60. 20% is allocated to the treasury, 20% is allocated to trading rewards, while 60% of the total weekly emission is allocated to stakers.

Inflation on DexToro has a weekly emission of 1,153,846.22 DTORO for the first week and is reduced to 1% APY or 15,955.4269 DTORO by the end of the 4th year.

What should you know about the role of DTORO?

As a utility token, DTORO must be integrated with the ecosystem. When talking about utility, we show how users can leverage tokens and participate in the growth and evolution of DTORO. As mentioned, DTORO can be staked, used for governance (coming soon), and to earn trading rewards. But how?

Connecting Staking and Inflation

Users can receive inflationary rewards when staking DTORO and locking them for a period on the protocol. These rewards are offered as part of the 4-year inflation plan, and sometime in 2024, DexToro’s trading fees (real revenue) will also be included, and token holders will receive this revenue. Users can earn two types of staking rewards: inflationary rewards and trading rewards.

Inflation rewards are awarded to users on a continuous basis consisting of 60% of the weekly inflation that's set by the smart contract.

Trading rewards are ways in which active traders who interact with the platform are awarded for their participation. Traders get an allocation of 20% from the inflation supply. Additionally, their score is calculated through a Cobb-Douglas function where rewards = fees paid * staked DTORO. You can check the whitepaper section on our GitBook to find the exact formula.

Token vesting to sustain the ecosystem

DTORO tokens received as rewards are not immediately claimable. The network has imposed a 1-year lock-up period where no tokens can be used, traded, or accessed.

A 90% fee is added for vesting DTORO early, which is set to decrease gradually for one year. This way, DexToro avoids inflating the supply of tokens unreasonably. A 0% fee is paid only after one year, which ends the lock-up period. Afterward, tokens can be traded, sent, and used anywhere in the network.

DexToro has a cooldown period of 14 days where users can transfer their tokens only after the period has elapsed. If you interact with the staking contract within the 14-day timeframe, the clock restarts. For example, if you unstaked your tokens, and a day after you staked a portion of it back, you will still have to wait 14 more days from your last action to claim and use the tokens.

How to interact with your tokens

You can interact with DTORO tokens on the platform during and after the lock-up period by either claiming the tokens in your wallet or compounding them on DexToro.

Claiming tokens is a simple process once the lock-up period is over. Compounding, on the other hand, has a twist to it. Compounding DTORO can be done during the lock-up period to increase token yield. All new rewards can automatically be added to the Stake Escrowed DTORO balance to earn additional DTORO.

The DTORO token isn't a way to generate active rewards from DexToro. Instead, it's a way in which both users and the platform can create a system that can help facilitate the network's overall growth. Staking DTORO gives value to the DexToro ecosystem and should be used as a way to incentivize the use of the decentralized perpetual futures platform.

Do you have questions about DTORO that still need to be answered?

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