Token Economics

The DI token serves as the governance and utility token for the DI Network ecosystem, with carefully designed tokenomics to align incentives and ensure long-term sustainability.

Token Overview

Basic Information

• Token Name: DI Network Token

• Symbol: DI

• Total Supply: 1,000,000,000 DI (1 billion)

• Decimals: 18

• Token Standard: ERC-20

Token Utility

• Governance: Voting on protocol parameters and upgrades

• Fee Payments: Discounted fees when paying with DI tokens

• Staking Rewards: Earn protocol revenue through staking

• Liquidity Mining: Rewards for providing liquidity

• Cross-Chain Gas: Pay for cross-chain transaction fees

Token Distribution

Initial Allocation

Category	Allocation	Tokens	Vesting
Team & Advisors	20%	200M DI	4 years linear
Community Treasury	25%	250M DI	Governance controlled
Ecosystem Incentives	30%	300M DI	5 years emission
Private Sale	15%	150M DI	2 years linear
Public Sale	5%	50M DI	No vesting
Liquidity Bootstrap	5%	50M DI	Immediate

Emission Schedule

Year 1: 15% of total supply (150M DI)
Year 2: 12% of total supply (120M DI)
Year 3: 10% of total supply (100M DI)
Year 4: 8% of total supply (80M DI)
Year 5: 5% of total supply (50M DI)
Total 5-year emissions: 50% (500M DI)

Value Accrual Mechanisms

Fee Revenue Sharing

DI token holders receive revenue from:

• Trading Fees: 60% of DSwap and DPerp fees

• Bridge Fees: 40% of cross-chain bridge fees

• Liquidation Fees: 25% of liquidation penalties

• Interest Payments: 30% of DUSD borrowing interest

Token Burn Mechanisms

• Fee Burns: 10% of collected fees burned quarterly

• Buyback & Burn: Excess treasury funds used for buybacks

• Deflationary Pressure: Reduces circulating supply over time

Staking Rewards

Staking APY = (Protocol Revenue × 60%) / Total Staked DI

Governance Model

Voting Power

• 1 DI = 1 Vote (base voting power)

• Staking Multiplier: Up to 2.5x for long-term staking

• Delegation: Transfer voting power to trusted delegates

• Quorum: Minimum 10% of circulating supply must participate

Governance Scope

• Protocol parameter changes

• Fee structure adjustments

• Treasury fund allocation

• Smart contract upgrades

• New asset listings

Token Utility Expansion

Cross-Chain Utility

• Gas Credits: Purchase gas credits with DI tokens

• Bridge Discounts: Reduced fees for DI token payments

• Multi-Chain Governance: Vote on cross-chain proposals

DeFi Integration

• Collateral: Use DI as collateral for DUSD minting

• Liquidity Pairs: DI/ETH, DI/USDC trading pairs

• Yield Farming: Earn additional rewards in liquidity pools

Economic Incentives

Liquidity Mining

Pool	Allocation	Duration	APY Range
DI/ETH	40%	2 years	50-150%
DI/USDC	30%	2 years	40-120%
DI/DUSD	20%	2 years	30-100%
Other Pairs	10%	1 year	20-80%

Trading Incentives

• Volume Rewards: Earn DI based on trading volume

• Referral Program: 20% of referee's fee rewards

• Market Making: Additional rewards for providing liquidity

Token Metrics

Key Performance Indicators

• Circulating Supply: Tokens available for trading

• Staking Ratio: Percentage of supply staked

• Burn Rate: Tokens burned per quarter

• Velocity: Token turnover rate

• Market Cap: Total token value

Target Metrics

• Staking Ratio: 40-60% of circulating supply

• Burn Rate: 2-5% of supply annually

• Governance Participation: >15% voter turnout

• Cross-Chain Usage: 30% of transactions

Vesting Schedules

Team & Advisors (4-year linear)

Cliff: 12 months
Vesting: 36 months linear after cliff
Monthly Release: 1/36 of allocation

Private Sale (2-year linear)

Cliff: 6 months
Vesting: 18 months linear after cliff
Monthly Release: 1/18 of allocation

Ecosystem Incentives (5-year emission)

Year 1: 30% of allocation
Year 2: 25% of allocation
Year 3: 20% of allocation
Year 4: 15% of allocation
Year 5: 10% of allocation

Economic Security

Attack Resistance

• 51% Attack Cost: High due to staking requirements

• Governance Attacks: Time delays and emergency procedures

• Economic Attacks: Aligned incentives reduce attack profitability

Stability Mechanisms

• Treasury Reserves: Maintain 6-month operational runway

• Emergency Fund: 5% of supply for crisis management

• Insurance Pool: Community-funded protection

Future Developments

Token Evolution

• Deflationary Transition: Move to net deflationary model

• Cross-Chain Expansion: Native tokens on multiple chains

• Utility Expansion: New use cases and integrations

• Governance Enhancement: Improved voting mechanisms

Economic Upgrades

• Dynamic Fee Adjustment: Algorithmic fee optimization

• Yield Optimization: Enhanced reward distribution

• Burn Acceleration: Increased deflationary pressure

• Incentive Alignment: Better long-term holder rewards