Establish a $7m Liquidity Mining Program for Incentivizing TVL Across Key Applications and Protocols on SX Network

We're proposing the first SX Network SX-denominated liquidity mining (LM) campaign. This program will be used to incentivize total value locked (TVL) of the SX Network blockchain, with a particular focus on increasing SX token liquidity and use.

This liquidity mining campaign will incentivize TVL by incentivizing liquidity pools across several leading apps and protocols on SX Network. The proposal details below will serve as a baseline for potentially expanding the program should it prove effective after re-evaluating its results in 3 months. The goal is to deepen SX liquidity in strategically important pools and establish SX as the reserve currency of SX Network.

We expect this LM program to substantially increase the overall demand for SX, while firmly establishing SX Network as the premier Polygon Edge blockchain. We expect the liquidity for SX token to increase a minimum of 10x from $5m to +$50m. This program will also amplify SX exposure across many different large communities, creating valuable network effects for SX Network. This program will be implemented along with major marketing activities to further increase the SX Network community.

All SX incentives requested from this proposal will be matched by equal native asset incentives from the target apps and protocols, doubling the impact of this program. We have lined up approximately $8m of matching partner incentives at the moment. This means that if this proposal passes, SX Network will have a $15m liquidity mining program to power the SX Network launch. Liquidity mining is a tremendous tool for stimulating demand and liquidity. However, one of the major drawbacks of it is that liquidity can often be fleeting or short-term in nature.

To counter this, the SX Liquidity Mining campaign will commit to utilizing a minimum of 65% of the total SX for protocol-owned liquidity. This means that at least 13m of the 19m SX utilized in this program will never be sold; instead, it will be locked into permanent liquidity pools.

The remaining SX will be matched with partner incentives for dual mining rewards to increase TVL. This includes the $2.5m MATIC grant issued by the Polygon team, which will be used to further incentivize TVL on SX Network.

For these reasons, we believe the long-term benefits of this LM program vastly outweigh the increase in circulating SX supply. This program will kickstart the SX economy, permanently increase SX liquidity, and establish SX as the premier Polygon Edge blockchain. The official proposal is for $6.75M SX (19,000,000 SX) and $250k of stable coins (250,000 DAI).