INTRODUCTION

Since the launch of the V1 Dapp, dozens of funds have been created and rewards evenly distributed proportionally to the fund AUM. With the DEXTF Dapp v2 rollout, there is an opportunity to concentrate rewards towards flagship funds.

$DEXTF token holders can influence the decision based on their votes and promote funds of their choice. Initially the team will select a number of funds to be voted and later community members can propose new funds too.

CHANGE OF DAILY DISTRIBUTION

This proposal is to request a change in the allocation of the daily distribution based on a voting mechanism to boost the rewards of selected funds that received the most votes by $DEXTF token holders.

The current daily distribution is as follows:

• 12k $DEXTF tokens are distributed to Investors proportionally to the investment/total AUM ratio
• 3.2k $DEXTF tokens are distributed to Fund Managers proportionally to fund AUM/Total AUM ratio
• 29.6k $DEXTF tokens are distributed to Liquidity Pools (30% to pool2 and 70% across all XTF pools)

THE PROPOSAL

The daily token allocation is divided into 2 buckets:

• a) 50% of rewards distributed proportionally to the size of the fund, basically the same mechanism used today (fund AUM/Total AUM).
• b) 50% of rewards distributed to funds based on the following voting mechanism:
  • twice a month (1st and 15th of each month), a selected number of funds compete for the reward boost through $DEXTF token holders’ vote. The more votes a fund receives, the higher is the boost (with a cap of x1.5) allocated to it.
• c) the rewards for the DEXTF/ETH pool remains unchanged to 30% of the daily allocation.

For example:

Total number of tokens in circulation eligible for voting 10m and 4 funds are selected for a boost in the next fortnight cycle and the daily drop is 40k.

Fund	AUM	% AUM	VOTES	% VOTES	Rewards (a)	Rewards (b)	Total a+b	Boost
XTF2XXXXTF	265,000	26.5%	3.5m	40.0%	5,300*	7,950**	13,250	150%
XTF2YYYBOX	140,000	14.0%	1.24m	14.2%	2,800	2,838	5,638	101%
XTF2XXXSAD	395,000	39.5%	4m	45.8%	7,900	9,153	17,053	116%
XTF2000EXC	200,000	20.0%	0	0	4,000	0	4,000	0
TOTAL	1,000,000	100%	8.74m	100%	20,000	19,941***	39,941

*5,300 = 40,000x50%x26.5%

**7,950 = min between 1.5 x 5,300 and 5,300x(40%/26.5%)

***note that not all 20k tokens have been allocated because XTF2XXXXTF reached a cap of x1.5. Undistributed tokens will be allocated in following months and have a deflationary effect.

If approved, the change will apply effective 1st Aug 2021.

CONCLUSION

We, therefore, ask the community to VOTE this proposal: