Dopex uses two tokens model: DPX and rDPX.
DPX is the governance token for the Dopex protocol and is used for voting on protocol and app-level proposals. It also earns fees and revenue from pools, vaults built on the Dopex protocol. The total supply of DPX is 500,000. To earn fees, you need to lock your DPX tokens for a certain period of time. The longer you lock your DPX, the more rewards and governance power you will have. This is called the "Vetoken model." - the most successful and well-established tokenomics model in the market currently.
For example, if you lock 10 DPX tokens for 1 year, you will receive 10 VeDPX, which will give you the power of 10 DPX. However, if you lock 10 DPX tokens for 2 years, you will receive 20 VeDPX, which will give you the power of 20 DPX.
This model stabilizes token prices and provides more benefits for long-term participants.
rDPX is a token minted and distributed for any losses incurred by option writers in the pools. The amount of tokens minted depends on the net value of the losses. A percentage of the losses, as determined by governance, is minted for all option writers. Initially, rDPX will not have a set emission curve, but the emission mechanism could be changed in the future via governance votes.
For example, if you provide liquidity to option buyers with 1 ETH at a price of $1500 and the price drops to $1300 on the designated payment date for the option you will need to pay the option buyers $200 in ETH, which will result in a loss of $200 in ETH for you. In this case, the Dopex protocol will give you rDPX tokens equivalent to $200 , your risks will be covered.
The team is currently working on the V2 rDPX tokenomics model, which will give the token more utility. More information about this can be found at the following link: https://docs.google.com/document/d/1005YPC8-tUJhuhzTZK__3KZss0o_-ix4/edit. Show Less