Locking the CXD token for vlCXD grants access to:
- Fee distribution. A portion of protocol revenue is distributed to CXD lockers.
- Governance. Vote to update, change, and revise protocol system parameters.
- Boosted Index returns. Holding CXD + any CortexDAO Index = increased Index APR!
We designed the CortexDAO tokenomics to foster DAO growth and reward CXD lockers, those most committed to the long-term vision of the protocol. We set four goals to maximize value for CXD lockers:
- 1.Encourage and reward DAO participation.
- 2.Encourage CXD buy pressure.
- 4.Decrease sell pressure.
A user who purchases and locks CXD can earn idxCVX. Similarly, a user who purchases and stakes idxCVX can earn CXD. This creates tokenomics that are sustainable and deflationary.
Locked CXD earns idxCVX from fee distributions. Staked idxCVX earns CXD rewards.
- 1.Users buy CXD.
- 2.Users lock CXD to earn vlCXD. This reduces the circulating supply.
- 3.Users earn idxCVX from fee distribution.
- 4.Users stake idxCVX to earn CXD.
- 5.Users lock their newly earned CXD to repeat the cycle.
- 2.A portion of revenue is used to cover protocol expenses such as deployment, staking, harvesting, and claiming.
- 3.All profits are then distributed to vlCXD holders as 3CRV.*
*Once the Convex Index token (idxCVX) is launched, profits will be distributed in idxCVX.
Once idxCVX is released, vlCXD will boost idxCVX staking rewards.
- 1.Users buy idxCVX to gain exposure to the Convex Index.
- 2.Users buy and lock CXD to earn vlCXD.
- 3.Users earn CXD from boosted idxCVX staking rewards.
vlCXD will be used to create and vote on DAO proposals. A soon-to-be-released DAO constitution will define the proposal process.