DGN is Degen Protocol’s native token, which helped bring decentralized margin trading to crypto.
Today, we take a look into the details regarding the token itself, as we explore DGN tokenomics.
We will also take a brief look at what awaits the protocol in the near future, according to its roadmap.
DGN is a native token of Degen Protocol, which was built to enable decentralized margin trading, but today, we are taking a deeper look into the token itself.
Degen Protocol is one of three projects that make up the UniMex ecosystem, with the other two being farm.space (SPACE) and UniMex (UMX) itself. Degen is a product that focuses on decentralized margin trading, and that makes it a crucial part of the ecosystem.
Naturally, the token has its own whitepaper, its own unique mechanisms — that make it not only work, but even prosper — as well as its own tokenomics, and that is what we are focusing on today.
According to what is known about the project, DGN has a total token supply of 1 million units, which is very low for any cryptocurrency. Remember that even Bitcoin, which is praised for being capped and named very reliable and inflation-proof because of it, has 21 million coins. For a project to only have 1 million is very low, but, on the other hand, it will probably serve Degen’s price well in the future.
Moving on, half of the total supply, which is around 500,000 tokens, was offered in the Seed Offering and Initial Token Offering. This means that 50% of DGN was available for purchase right at the start, reachable by any investor or trader during those early days.
Another 20% or 200,000 was locked away for the next century during the Initial Uniswap Listing. These tokens will not become available for use for 100 years, which means that Degen’s already very low total supply is further reduced by 20%. Another 15%, or 150,000 DGN, are being used for trading and the referral rewards program.
This is not unusual to see, as many DeFi projects rely on referrals in order to spread. This makes sense, considering that DeFi is all about the community and the people who participate. The goal is to create a trustworthy environment, where friends would invite friends to join, and be rewarded for it. Then, there is another 10% (100,000 DGN) that is used for YIELDX swap, and finally, 2.5%, or 50,000 DGN, was put aside for airdrops to UMX stakers.
DGN can also be staked, of course, although, unlike UMX which is available on ETH and BSC networks, DGN is only on BSC.
Lastly, Degen is a very young protocol that only launched half a year ago, early in the first quarter of 2021. It was listed on PancakeSwap on BSC right after that, and by Q2, it launched v1 of its platform, as well as for instructions regarding token governance.
Now that Q2 is approaching its end, there are two more goals that the project plans to achieve in the rest of the year. At least, these are the two major ones, with other, smaller ones, potentially being achieved along the way. The two big goals include additional AMM integrations and the offering of synthetic derivatives. All in all, DGN is a very unique and very useful project, with a very low total supply, and a pretty decent plan, where every token has an important role to play.