Sometimes in life you are given the opportunity to be part of history in the making. The decisions you make at these moments can determine your future, shape the trajectory of an industry, and influence the world itself. The DEXTools movement, and what it is growing to become, is one such opportunity.
DEXTools has provided crypto traders with unparalleled insights, tools and data analytics for trading on decentralized exchanges. The DEXTools Standard is now one of the central pillars of DeFi. DEXTools is the gateway to DeFi for many traders and is the Hub of DeFi for many more. With our announcement today, however, DEXTools will become even greater.
Today, we are officially launching DEXTShare, your stake in DEXTools’ subscription revenue, and by proxy, your stake in DEX trading and the DeFi industry itself. With DEXTShare, DEXTools is now transitioning to a revenue share model with premium holders. Premium holders have undeniably contributed to the tokenomic stability and success of our project since May 2020 when we launched our beta. Now that DEXTools is moving to a freemium model, we will be giving 90% of all subscription revenue to the steadfast premium holders as a sign of our gratitude and recognition of your importance. We will continue to burn 10% of all subscriptions in perpetuity to ensure that DEXT will always be a deflationary token.[1]
To supplement subscription revenues in 2020 and 2021, we will subsidize this revenue with 1M each month from November 2020 to October 2021. In other words, the DEXTools team will distribute 1M DEXT of their own holdings to premium holders each month for one full year, totaling 12M DEXT by October 2021. The team will not be minting tokens (and in fact the DEXT contract does not allow for minting). This initiative is to show our complete commitment to DEXTShare and to maximizing the value of the DEXTools ecosystem. The DEXTools team’s expansion and development will continue to be funded from advertising and sponsorship revenues.
The DEXT token will now be a unique and valuable combination of utility token and economic token. In making this change, we are giving you the opportunity to participate in DEXTools’ revenue. As DEXTools continues to grow into being the hub of DeFi, this revenue will outpace the already tremendous growth of the crypto and DeFi industries. By securing your eligibility for DEXTShare today, you are securing your stake in the future of DeFi.
How DEXTShare will work in practice
All holders who maintain at least 100,000 DEXT in their wallet over a calendar month will be eligible for DEXTShare. Snapshots will take place on the first day of each calendar month. To qualify, you must maintain at least 100,000 DEXT in the full period between each snapshot.
For November 2020, the starting snapshot is 15 November, ending on 1 December. This means the first round of revenue sharing has already begun and premium members who have held 100,000 DEXT since UTC 18:00 on 15 November will be receiving their DEXTShare at the beginning of December. Subsequent snapshots will take place at UTC 00:00 on the first day of each calendar month.
Your share of subscription revenue will be proportionate to the total eligible holdings of all wallets who are entitled to a share of revenue. Your share is calculated from the lowest amount maintained in your wallet over that period. Team wallets are not eligible for DEXTShare, meaning that DEXTools will distribute all subscription revenue that is not burnt to holders.
To make it easy to participate in DEXTShare, premium holders will not need to stake or lock their DEXT using a smart contract. Instead, we will be airdropping DEXT (consisting of both the monthly revenue and subsidy) to each qualifying wallet.
Initial APY projections
We have run extensive modelling of the projected benefits of DEXTShare and we are overwhelmingly excited about the expected value that this will bring to premium holders and the DEXTools ecosystem. By subsidizing 1M DEXT each month for the first 12 months of DEXTShare, we are guaranteeing roughly a 24% APY, in DEXT terms, relative to your investment (based on projected premium holdings).
We have also modelled conservative, expected, and bullish APY projections, in USD terms, based on multiple revenue estimates for the first year. The conservative modelling produces an expected APY of 77%, the expected scenario APY projection is 172% and the bullish scenario results in an APY of 306% over this initial year. All three scenarios assume a conversion rate of 1% to 2% of our total unique users to paid subscription models (with 50% of these users assumed to be holders of 5000 DEXT and hence receiving a discounted rate). We believe this to be a safe assumption as freemium models often see a 3% to 5% conversion rate.
This modelling shows that, even with a conservative projection, DEXTShare will provide incredibly attractive rewards for our premium holders that are unparalleled in any project of this caliber. Meanwhile, our continued commitment to deflationary tokenomics delivers on our promise of burning tokens in perpetuity, and will benefit all DEXT holders. We encourage you to take advantage of this remarkable trading opportunity and to secure your stake in the future of DeFi today.
Other housekeeping matters
With the launch of DEXTShare, we will be implementing two further changes to improve the clarity over our product tiers.
First, as detailed in our earlier Medium post today, we will remove any trading app functionality differences between the Standard and Premium tiers. All previously-planned Premium tier functionalities will be available in the Standard tier. This will ensure that the Standard tier is compelling and also ensure that all trading app features are accessible to users who prefer to pay a subscription rather than to hold 100,000 DEXT.
Second, we will be removing the sponsor token airdrop system for premium holders. We agreed with the community feedback that current sponsorship revenues do not provide sufficient incentives for premium holders. This was especially so considering the wastage of gas fees arising from airdropping multiple sponsor tokens each week to each premium holder. Our initiative to improve the economic incentives for premium holders led us to devising DEXTShare as a superior replacement. Meanwhile, DEXTools development will be funded by sponsorship and advertising revenues.
Conclusion
We hope that you take up this opportunity to be part of history in the making. Come join the DEXTools movement and help us spread the word of what DEXTools has to offer for users, subscribers, and premium holders alike. Our Telegram community is open to all.
Expect to see an updated roadmap, contest announcements, and more content and updates very soon. Take care and safe trading!
[1] For November and December 2020, will burn 50% of subscription fees and distribute the other 50%, to meet our earlier commitment to the community of burning 50% of subscription revenues. From January 2021, 90% of all subscription fees will be distributed to premium holders in perpetuity, while the remaining 10% is burnt.
