INTRODUCTION

The token distribution under the liquidity mining and investor/fund manager incentive programs has resulted in very attractive yields for weeks and many community users have been rewarded with large $DEXTF airdrops. While this is a great return for farmers and investors, the generous airdrops are causing inflation and in the medium-long term this is not healthy for our tokens holders.

DIP-5 is the first proposal submitted to community vote in order to reduce inflation and selling pressure. Depending on the effect of this governance change, we will be submitting other proposals that might result in further reduction of the overall token supply.

REDUCTION OF DAILY AIRDROPS

This proposal is to request a reduction of the daily airdrop by a percentage across all programs to start reducing inflation immediately with effect 1st May 2021.

The current daily airdrops is as follows:

• 15k $DEXTF tokens are distributed to Investors proportionally to the investment/total AUM
• 4k $DEXTF tokens are distributed to Fund Managers proportionally to fund AUM/Total AUM
• 37k $DEXTF tokens are distributed to Liquidity Pools (30% to pool2 and 70% across all XTF pools)

For the avoidance of doubt, these are the proposed options:

• Option 1 - No change
• Option 2 - 20% reduction ($DEXTF 12k, 3.2k & 29.6k for Investor, Fund Manager and LP respectively)
• Option 3 - 40% reduction ($DEXTF 9k, 2.4k & 22.2k for Investor, Fund Manager and LP respectively)

In addition, the proposal is to extend the rewards streaming from 2 months to 3 months.

If the proposal for change passes, the new daily airdrop rule will apply effective 1st May 2021.

Any approved reduction will be reallocated to the Treasury and used for the protocol development.

CONCLUSION

We, therefore, ask the community to VOTE this proposal in order to reduce inflation:

• No reduction, 2 months streaming
• 20% reduction 3 months streaming
• 40% reduction 3 months streaming