Dexterity Docs
  • Dexterity
    • Summary
    • Introduction
    • Trading Pairs and Liquidity
    • Technical architecture
    • Token Economics
      • Revenue Model
      • Liquidity Provision
      • Platform Sustainability
      • Governance and Future Token Considerations
      • User Benefits
    • Governance
      • Initial Governance Structure
      • Transition to Decentralized Governance
      • Community Role in Governance
      • Governance Principles
    • Security Measures
    • Frequently Asked Questions (FAQ)
  • POLARITY NETWORK
    • Introduction
    • Polarity Network & Developer Kit
    • Architecture Overview
    • Technical Specification
    • Transaction Flow
    • Security
    • Scalability & Performance
    • Monitoring & Maintenance
    • Governance
    • PLR Token (Polarity)
    • Economic Model
    • Frequently Asked Questions (FAQ)
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  • Overview
  • Fee Structure
  • Revenue Distribution
  • Incentive Mechanisms
  • AMM Model
  • Future Economic Model
  • Risk Management
  1. POLARITY NETWORK

Economic Model

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Last updated 2 months ago

Overview

The economic model of our L3 blockchain is designed to ensure sustainable operation, fair revenue distribution, and proper incentives for all participants without initial reliance on a native token.

Fee Structure

Trading Fees

Standard Trading Fees
Special Operation Fees

Maker fee: TBD

Cross-chain transactions: TBD

Taker fee: TBD

Complex operations: Variable based on complexity

Based on trading volume

Priority transactions: Additional fee based on urgency

Competitive with market rates

Revenue Distribution

Current Model

  • 50% to Liquidity Providers

    • Encourages liquidity provision

    • Scales with trading volume

    • Based on contribution size

  • 30% to System Treasury

    • Funds development

    • Covers operational costs

    • Supports system improvements

  • 20% to Node Operators

    • Rewards infrastructure provision

    • Based on performance metrics

    • Incentivizes reliability

Incentive Mechanisms

For Liquidity Providers

  1. Fee Sharing

    • Proportional to liquidity provided

    • Volume-based rewards

    • Duration-based bonuses

  2. Requirements

    • Minimum liquidity thresholds

    • Minimum time commitments

    • Balanced asset ratios

For Node Operators

  1. Main Node

    • Base operational reward

    • Performance bonuses

    • Uptime requirements

  2. Sequencer Nodes

    • Transaction processing rewards

    • Batch optimization incentives

    • Quality of service bonuses

AMM Model

Liquidity Pools

  • Concentrated liquidity model

  • Multiple fee tiers

  • Dynamic range optimization

Price Discovery

  • Automated market making

  • Price impact considerations

  • Slippage protection

Future Economic Model

Token Integration (Future Plans)

  1. Governance Token

    • Voting rights

    • Fee discounts

    • Staking benefits

  2. Distribution Plan

    • Community allocation

    • Development fund

    • Ecosystem growth

DAO Transition

External Market Integration

  • Multiple DEX integration costs

  • Smart routing optimization

  • Price impact management

  • Reserve maintenance strategy

Risk Management

Economic Safeguards

  1. Market Protection

    • Price manipulation prevention

    • Volatility controls

    • Emergency circuit breakers

  2. Operational Security

    • Reserve requirements

    • Insurance funds

    • Emergency procedures

External Market Risk

  • Price deviation monitoring

  • Liquidity source diversification

  • Asset availability tracking

  • External market contingencies

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