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    • Why Sonic?
    • Tokenomics & Emissions
    • Gamified Burning Mechanism (GBM)
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  • WigoSwap (Fantom Opera)
    • WIGO to FIVE Migration
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  1. Overview

Tokenomics & Emissions

PreviousWhy Sonic?NextGamified Burning Mechanism (GBM)

Last updated 1 month ago

FIVE is the native token of DeFive, designed to power the platform and reward its community. With an initial hard cap of 2 billion tokens, FIVE’s total supply is determined by the migration process. If all WIGO holders on Fantom migrate their tokens to Sonic, the hard cap will remain 2 billion. However, this will be updated at the end of the migration, reflecting any WIGO tokens that were not converted into FIVE.

Circulating Supply at Launch

Upon the launch of DeFive on Sonic, up to ~1.8 billion FIVE tokens may enter circulation, assuming all WIGO tokens are migrated. These tokens represent the migrated supply from Fantom. The remaining tokens, up to the hard cap, are reserved for emissions to sustain the platform over time.

Emissions and Minting

DeFive’s emissions are designed for sustainability and fairness:

  • Emission Rate: Up to 5 FIVE tokens per second, with the flexibility to adjust based on DAO decisions. The emission rate can vary between 0 and 5 FIVE/sec, ensuring adaptability to the platform’s needs.

  • Distribution of Emissions:

    • Up to 70% of minted FIVE goes to Liquidity Providers through yield farming rewards.

    • Up to 30% of minted FIVE is allocated to veFIVE holders, rewarding long-term commitment and governance participation.

Fair Distribution and Sustainability

  • No Team Allocations: The DeFive team does not receive any share of emissions, ensuring that all rewards go directly to the community.

  • DAO Control: The emission rate is governed by the DAO, allowing veFIVE holders to adjust minting speeds to align with the platform’s growth and sustainability.

Why These Tokenomics Matter

DeFive’s tokenomics are designed to promote fairness, sustainability, and community ownership. By eliminating team allocations and empowering the DAO to manage emissions, FIVE ensures that its value is aligned with the long-term interests of its users and the broader DeFive ecosystem.

This structure provides:

  • Incentives for Liquidity Providers to maintain deep pools and support the platform.

  • Rewards for veFIVE Holders who commit to the platform and drive governance decisions.

  • A Flexible Emission System that adapts to the platform’s evolving needs.

In summary, FIVE’s tokenomics reflect DeFive’s commitment to building a decentralized and community-first DeFi platform on Sonic seeking transactions volume increase.