Before delving into reSITH and its raison d'être, it is useful recalling how the SithSwap tokenomics is designed to orbit around the SITH token: an ERC-20 reward and utility token.
At any time, SITH can be vote-escrowed (i.e. locked) in exchange for a veNFT (i.e. veSITH): a special tradable NFT token carrying a proportional amount of voting power relative to the underlying SITH tokens locked inside of it.
veSITH voting power is the sole kingmaker of the SithSwap AMM, able to capture a proportional share of its weekly trading fees, as well as decide on the incentivization of specific trading pairs as well as on any 3rd-party fungible token rewards that may be posted up by external protocols and users to compound the native protocol emissions and further incentivize selected pairs.
Structurally, the tokenomics for the total SITH supply is as follows:
Thus, reSITH is to be made available as a special reedemable, non-transferable ERC-20 token that can be acquired exclusively through the Public Sale and will be used to reedem locked SITH at a 1:1 rate once the protocol rewards are live!
The Public Sale for reSITH (reedemable-escrowed SITH) is structured as a time-limited Crowdsale that will run on StarkNet for 31 days, starting on ██████ (T.B.A.), where participants will be able to offer L2 DAI tokens in exchange for reSITH at an initial rate of 1:2 (1 DAI = 2 reSITH) linearly progressing to a final rate of 1:1.
The Crowdsale will also feature the following mechanics worth noting:
StarkNet infrastructure, including the Alpha Mainnet, is still well in its infancy (and indeed alpha state) and as such an extremely limited number of whitelisted projects are currently deployed on it, specifically our Public Sale will technically depend on: