If you’re familiar with the crypto world, there’s no chance you haven’t heard about utility tokens.
The Merriam Webster dictionary defines a utility token as
“a digital token of cryptocurrency that is issued in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency”.
Utility tokens are defined by their functionality, and they deliver value to investors in a number of ways depending on their role, features, and purpose. From funding projects and start-ups to facilitating transactions on the blockchain and more, utility tokens are all the rage now.
Today, let’s explore DETO - the utility token of Delta Exchange, the world’s leading exchange for crypto derivatives.
DETO is Delta Exchange's utility token, and it is the backbone of the Delta ecosystem. An ERC-20 type token, DETO is also a rewards token. In fact, the rewards program on Delta is specifically centered around DETO and designed in such a way that will incentivize traders to participate in trading and other aspects of Delta Exchange. DETO-based incentives will also aid Delta in attracting new traders and boosting trading volumes.
Token type - ERC-20
Token Category - Exchange Token
Token Supply - 500 million
Initial Circulating Supply - 16.74 million
Supply hard cap (after 4+ years) - 750 million
At Token Generation event
Treasury - 16.7%
Reward pool - 20%
Equity holders - 35%
Private sale - 20.8%
Employees and advisors - 7.5%
When supply = hard cap
Treasury - 27.8%
Reward pool - 30%
Equity holders - 23.3%
Private sale - 13.8%
Employees and advisors - 5%
The various functionalities of DETO, which have been carefully designed to increase the demand of DETO and reduce its circulating supply, are as follows.
Trading fee payments
Customers can use DETO to pay up to 25% of their trading fees. Delta Exchange will accept this DETO at the higher of the current market price of DETO and the Minimum Support Price (MSP).
To use this feature, users should enable the 'Use DETO to pay trading fees' option in their account preferences.
By allowing DETO to be used as margin for trading on Delta Exchange, traders will be able to margin positions in DETO, even though the settlement will happen in BTC or USDT
As trading activity and open interest on the exchange increases, using DETO to collateralize open positions will inevitably boost the demand for DETO. This will also aid in margined DETO being effectively locked up, thus reducing the circulating supply.
DETO margined & settled financial products
When Delta Exchange launches their structured products such as exotic options or incomes-generating products, these can be margined and settled exclusively in DETO.
DETO denominated insurance fund
Currently, Delta Exchange has an insurance fund that is composed of BTC and USDT denominated pools. Delta aims to introduce a DETO-denominated pool to supplement these insurance funds, allowing DETO holders to stake their tokens in the pool and earn returns.
DETO is much more than a utility token, as we've seen, and its primary purpose is to incentivise users through DETO rewards. DETO will be awarded to all active participants in the Delta Ecosystem. In fact, Delta has committed 100 million DETO to the rewards pool, accounting for around 20% of the token supply. The following are the various elements of the DETO rewards programme:
Liquidity Mining (Robo-trading & AMM Pools)
Users typically invest in a wide range of algorithmic trading strategies, such as AMMs ( automated market makers) and trend-following algos, on Delta Exchange's robo-trading marketplace. By participating in the robo-trading marketplace and AMM pools, customers stand the chance to earn DETO from the daily liquidity mining rewards pool, in proportion to their share of capital deployed.
Traders on Delta can also earn DETO from the daily trade farming rewards pool. Users don’t have to spend any extra effort on mining DETO. All active traders on Delta Exchange will automatically be eligible for trade farming rewards. The more a user trades, the more DETO they will earn. A trader's daily DETO reward is computed by dividing the fee paid by the trader on any given day by the total fee paid on the platform on that day, and multiplying the result by the total reward pool for that day.
DETO can also be earned by customers or professional affiliates on the trading activity of their referred users. The daily DETO referral mining incentive pool will be dispersed among all referrers in accordance to their referred users' trading volumes.
The staking programme will be used to build a DETO-denominated insurance pool. Delta will also introduce (risk-free) deposit schemes aimed at lowering DETO's circulation supply. This will increase the number of holders as well as provide margins for trades.
There’s no doubt that Delta Exchange is well on its way to become the number one crypto derivatives exchange, and DETO will play a central role in this growth. If you’re looking to earn some great rewards while trading crypto, head to Delta Exchange now.
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