Peanut Tokenomics (Will be updated)
Peanut. tradeKnow more about $NUX utility, upcoming public sale, buybacks, and listing on Uniswap.
Sound token economics is one of the most important conditions for the long-term success of the whole product. In this article, we reveal the details of NUX, the ERC20 token that powers Peanut protocol.
NUX utility function
In order to perform balancing of token rates on CEX and DEX platforms, it is not enough to have only a working algorithm. This is only a tool. It won’t work properly without a significant amount of crypto assets. Peanut will provide a portion of such assets from its own reserve. But the majority of such assets will be provided by third parties who will earn passive income from lending their own resources. Anyone can become such a liquidity provider (LP), from individuals to investment funds.
In order to add liquidity to the Peanut pool, users will need to deposit NUX tokens. Otherwise, Peanut’s algorithms won’t be able to conduct balancing operations with the user’s liquidity.
The NUX token enables our algorithms to work with your assets. Liquidity providers (or regular users) should have enough NUX for the Peanut balancing mechanism to start operating their liquidity. Once profit is earned, fees will be taken from the NUX tokens at an amount of 10%.
The balance of NUX on account should be the following:
Where BNUX is a balance of NUX in a user’s wallet in USD equivalent, and Basset are balances of different assets in USD value in the user’s wallet, which are provided to Peanut protocol. XNUX is an additional amount of NUX tokens for commissions. The exact amount of XNUX is at the discretion of the liquidity provider.
NUX token distribution
NUX is an ERC20 utility token (contract 0x89bd2e7e388fab44ae88bef4e1ad12b4f1e0911c), so it can be stored in any wallet that supports ERC20 tokens. According to Peanut’s token model, 40M NUX will be minted at the genesis and will have the following distribution:
- 6M NUX as an airdrop for REM token holders and Guardians of REMchain — initially locked 100%
- 10M NUX for pre-sale and public sale — initially locked 100%
- 10M NUX for community/partnerships/incentivizing — initially locked 70%
- 10M NUX for further development of the project — initially locked 50%
- 4M NUX for the team — initially locked 100%
In addition, there will be an additional emission of 10M NUX, which will be shared among all LPs as liquidity mining.
Presale results
In December, we successfully finished the presale event. A total of 4M NUX tokens were distributed among 145 participants. The price of 1 NUX was $0.25 and all tokens have already been deposited into the accounts of presale participants.
Initially, all the tokens are locked. There is an unlocking schedule of 4% each month over 25 months (after the public sale; we will share the exact date of the unlock later).
Public sale details
During the public sale on 23d February, there was 4M NUX tokens offered according to the Dutch auction model. This means that the exact price of 1 NUX could not be predicted beforehand. But the range was the following: from $2.5 (starting price) to $0.35 (last price).
The price of the token has been decreased gradually in equal periods of time.
Participants who made their bids at the starting price simply got more NUX with each step, as their bids were re-evaluated according to each new price. The final bid was 0,73$.
The NUX allocated for public sale is also locked, as well as presale tokens. But the process of releasing tokens will be slightly reduced. Instead of 750 days, tokens will be totally unlocked in 705 days. This depends on the final price of NUX:
Moreover, right after the listing on Uniswap, 3.53% of NUX tokens, which were sold in the public sale, were unlocked. This also depended on the final price of NUX in the public sale:
So, everything is simple: higher price — more benefits. But this is applicable only for public sale tokens; conditions for presale participants won’t change, despite the final price reached in the public sale.
Buyback
Buyback: the last but not least component of NUX tokenomics. We are planning to spend up to 10% of Peanut’s monthly revenue for buying back tokens from the market. This will have a positive effect on the token price. The buyback will be made on a monthly basis. Purchased NUX won’t be burned, as this is the fault strategy as stated in this article. These tokens will be sent to a reserve fund, and they will be used for further development of the project, if necessary.
We have already proceeded with the first buyback right after the public sale.
Listing on Uniswap
Obviously, the NUX token will be listed on trading platforms. The size of liquidity for the pool will be 20% of funds raised. And the first listing is on Uniswap. A NUX/ETH trading pair was added there two weeks from the date of the public sale. The listing price of NUX was double the price of the public sale - 0,73$.
If you’re interested in finding out more about the drawbacks to current CEX and DEX platforms, as well as far from perfect AMM mechanics, check out our blog post.
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