Ref Finance Tokenomics Overview
With over $1 million in TVL for the Skyward + NEAR liquidity pair, Ref Finance has had a highly successful launch with its fair token auction on Skyward Finance. In order to continue this growth, the DAO managing all of the community assets has put forth a proposal on the tokenomics for $REF!
The $REF Token
Since the DAO has recently voted to create a $REF token, we’ve outlined the breakdown and use cases below. Users can find details from that vote on gov.ref.finance. In total, there will be 100,000,000 $REF tokens in total supply.
Airdrops
Being a community governed project, our airdrops are vital to incentivize new users entering our community, as well as rewarding older ones who’ve been with us from Day 1! Out of the 5% of total supply, 3% will go to early users with 50% being locked for 3 months, and the remaining 50% being locked for a total of 6 months. An additional 2% will be reserved for strategic airdrops down the road!
Fee Management
Ref takes a fee of 0.05% per swap. Out of that, 0.04% gets allocated to the liquidity providers, with an additional 0.01% used to reward referrals. Being built on NEAR, Ref users will enjoy lightning fast transaction speeds with negligible fees for all Ethereum assets through our Rainbow Bridge!
Liquidity Incentives
With our farming features soon to be deployed, we are allocating a total of 60,000,000 $REF for liquidity incentives. The $REF token will be the primary reward for users who deposit liquidity and utilize their LP tokens in our farms. Initial pairs will be decided by the Ref Team, with the DAO being in charge shortly after of voting on which new pairs should be added to be eligible for incentives. The structure will be broken down over 4 years to ensure a smooth and gradual release of $REF while rewarding initial users:
Year 1: 25%
Year 2: 18.3%
Year 3: 11.67%
Year 4: 5%
Treasury
Another 35,000,000 $REF will be allocated to the treasury, which will be managed by the Ref Finance team. The treasury is further divided into a development fund (10%) for upcoming projects who will develop natively on NEAR and launch through Ref. An additional 25% will be allocated towards future community related activities, events and partnerships.
Governance
Currently, the Ref DAO is made up of a council plus a community board. One of the first proposals post the airdrop and Skyward sale will be to add token holders as a third role for governance.
These $REF holders will be able to stake their $REF to vote on proposals, similar to the council and community board. Proposals can be submitted on gov.ref.finance and voters will oversee decisions including treasury management, liquidity incentives, and (eventually) even protocol upgrades.
Summary:
Total Supply: 100,000,000 REF
Airdrops: 5,000,000 $REF
Liquidity Incentives: 60,000,000 $REF
Treasury: 35,000,000 $REF
In conclusion, it is important to note that Ref Finance is a community-led project. This means that $REF from the treasury will be used to incentivize our community to contribute in helping out with events, design, content, community building and much more! We look forward to growing not just Ref Finance, but the entire NEAR ecosystem with the support from all of you!
