Total Supply: 100 000 000 Ethix
Could not load image
We leverage on crypto economics to create this Incentive Loop.
For every lending project, there is a buyback of 4% in Ethix from the market which is used in order to further capitalize the compensation system. Each new Loan Originator has to have Ethix collateral before accessing liquidity.
- Each loan has a fee to be covered by the compensation system. This fee is used to buy back Ethix from the market creating a sustainable demand. Bought Ethix are sent to the Compensation Reserve. The starting point is 4% fee.
- Ethix holders buying Ethix to stake on behalf of Loan Originators (Specific staking pools with initial high APY to incentivize backing of new Originators). Their rewards can be collected daily but staked Ethix can be retrieved from the pool only when the project is fully paid back.
- Ethix holders buying Ethix to stake on the general staking pool get daily rewards (APY) that can be retrieved daily; their original stake can be retrieved after a ten day cooldown period.
- Loan Originators need to buy Ethix to deposit them as collateral in their own staking pools (these tokens are not rewarded with daily APY).
- Auditors need to buy Ethix to stake them on behalf of their referred Originators. (these tokens are not rewarded with daily APY). Auditors benefit from a success fee when its referred Originator pays back its loan.
The main selling pressure in the long term will be the Ethix sold to cover for defaults and/or extraordinary low return on DeFi investments. While the fee in each loan is higher than default, Ethix are effectively taken out of the market. The global benchmark of default for this profile of farmers is 3%. Since EthicHub launched its crowd-lending platform back in June 2018 it has registered less than 1% default.
In the short term there will be high inflation from the initial token distribution.
Compensation System: not vested but staked (to cover for potential default)
Incentives: gradually released during 16 years (startin on 22nd December 2020).
Team: 4 years vesting schedule (starting on 22 December 2020).
Company Tokens: unvested but used to stake as first Auditor of projects. If the company sells tokens the conditions will include vesting and Ethix Holders will know in advance if any potential selling pressure could arise in this regard.
Ethix Sold during presale: 3 months vesting (fully unvested on 22nd march 2021). Presale Price: 1 ETH = 5000 Ethix.