Dystopia is an application with a different view of Decentralized Exchanges. To gain greater insight into how the Dystopian future will look, here are some breakdowns of the governance, locking, token distribution, and bribe mechanisms.
Governance
Dystopia realized that one of the most important challenges for DeFi protocols is a coherent and efficient governance model.
Dystopia decided to solve this problem through the veModel, popularized by Curve. Moreover, DYST tokens are the liquid and tradable version, while veDYST are the locked tokens participating in the governance process. Important to note, veDYST balance decreases linearly over time.
veDYST holders receive trading fees from the gauges they have voted for, in addition to voting power for allocating DYST emissions.
Lockers’ DYST holdings will increase proportionally to the weekly emissions, creating a reduced-dilution effect for early lockers.
This reduced-dilution approach initially ensures that for every 1 DYST minted as emissions for liquidity providers, approximately 0.1 DYST goes to veDYST holders. The veDYST emissions rewards relative to liquidity providers emissions rewards begin at approximately 10% but decrease at a small rate determined by the amount of circulating tokens and amount of tokens locked. A higher lock percentage will keep the ratio of rewards closer to the initial 10% ratio. Less locking will lead to a lower ratio of DYST rewards for veDYST holders relative to liquidity providers.
Weekly Emissions
Weekly emissions are dependent upon the ratio of veDYST to total DYST circulating supply:
veDYST.totalSupply() / DYST.totalSupply()
The result is that the more users that lock in, the smaller the rewards distributed to Liquidity Providers.
Token Distribution:
Dystopia aims to have a fair launch, so that all users can feel confident in the protocol. 10 million DYST will be given to Polygon Ecosystem DAO as a locked NFT. While another 10 million will be split amongst Frax, QiDao, Terra and 26 other Polygon native protocols. Based on simulations, we expect the total supply to converge near 100 million DYST, meaning that this will be around 20% of the future supply, but this is all dependent on the amount of DYST locked.
