CVEX Token
The CVEX Token serves as the cornerstone of the CVEX Protocol, fulfilling two primary functions: governance and staking.
Governance
Aligning with the decentralised ethos of the CVEX Protocol, ownership will transition to a DAO (Decentralised Autonomous Organisation). CVEX token holders will have voting rights, with each vote's weight proportional to their token holdings, empowering them to influence decision-making and the protocol's future direction.
Staking
20% of all trade fees are provided to the Staking Pool as rewards in USDC.
Token holders can stake their CVEX tokens to earn additional profit. Staked tokens generate continuous USDC pay outs from the Protocol Fund, sourced from trade fees on all CVEX Platforms. Staking options include periods of 6, 12, and 24 months, with longer commitments yielding higher rewards — 1.5x for one year and 2x for two years.
In addition to continuous pay outs, CVEX token stakers enjoy further perks, such as trade fee discounts across all CVEX Platforms. Stakers are categorised into tiers based on their staking amount and duration, ensuring that larger and longer commitments receive more significant benefits. This tiered system incentivises extended and substantial stakes, enhancing value for participants and fostering sustained engagement. There will be five tiers for stakers:
| Tier | 6 months | 12 months | 24 months | Fee Discount |
|---|---|---|---|---|
I | >250 | >150 | >100 | 10% |
II | >1,500 | >800 | >500 | 12.5% |
III | >6,000 | >4,000 | >2,500 | 15% |
IV | >30,000 | >20,000 | >12,000 | 17.5% |
V | >150,000 | >100,000 | >60,000 | 20% |
The dual role of the CVEX token – in Governance and Staking with pay outs and benefits – aligns the interests of token holders with the long-term success and sustainability of the protocol. This fosters a community-driven approach to protocol management and encourages long-term commitment from its users.
Participation in Governance
The purpose of the token and the significant rewards associated with the token is to incentivise participation in Governance, we believe in a well-ordered system, where the users control the development and adoption of the protocol. Participation is required for the platform to remain well-ordered. For this purpose, and also due to the legal requirements where the DAO is operated, we require participation in the Governance to continue to collect staking rewards. Voting will be measured and active abstention is possible, but not passive participation, that is ignoring the voting cycles will result in the loss of staking rewards. As the DAO is started detailed rules on this and how to interact will be published.
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