Dolomite Economic Model: Value Accumulation of Multi-Token Mechanism
The multi-token economic model adopted by the Dolomite ecosystem showcases innovative ideas in DeFi economic design. KAVA, as the fundamental governance token, derives its value support from three core dimensions: network usage fees, staking rewards, and governance rights.
Currently, the annual inflation rate is controlled within a dynamic range of 3-7%, and the transaction fee burn mechanism effectively offsets inflationary pressures, creating a deflationary effect. The mechanism design of HARD tokens in the lending market is particularly exquisite, with 75% of the revenue distributed to participants, 5% allocated to HARD stakers, and 20% entering the risk reserve fund. This distribution ratio incentivizes participation while ensuring system security.
Currently, the total locked value in the lending market has surpassed 1.2 billion USD, with an average annual yield reaching 14.5%. The role of SWP tokens in the trading protocol is noteworthy, with 50% of the transaction fees distributed to liquidity providers, 30% used for SWP buybacks and burns, and 20% entering the governance pool. This mechanism creates continuous value accumulation, with the circulation of SWP having reduced by 15% and significant value enhancement observed. The synergy among tokens is remarkable; KAVA stakers can receive airdrop rewards of HARD and SWP, HARD stakers enjoy governance rights in the lending protocol, and SWP holders participate in the adjustment of trading parameters.
