Balanced
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Balance Token economics
Balance Tokens represent ownership in the Balanced DAO. They're entitled to governance and network fees, and are mined by providing liquidity on the Balanced exchange and/or having an open position on Balanced with at least a 285% collateral ratio.
There will be no pre-mine of Balance Tokens, and there is no maximum supply. 100,000 tokens will be mined per day for the first 60 days of operation. On the 61st day, the amount mined per day will begin to decrease by .50% each day until reaching 1,250 tokens per day to perpetuity. This results in a sub 2% inflation rate and continued incentivization to use Balanced.

Distribution of Balance Tokens

    47.5% to liquidity providers
      0.5% to the IUSDC/bnUSD pool
      5% to the BALN/sICX pool
      7% to the ICX/sICX pool
      17.5% to the sICX/bnUSD pool
      17.5% to the BALN/bnUSD pool
    10% to borrowers
    20% to Balanced worker tokens
    20% to the DAO fund
    2.5% to the emergency reserve fund
Balanced worker tokens (BALW) provide continued incentives to develop the platform and are explained in more detail in the Governance section. The DAO fund will hold BALN tokens, which BALN holders can vote on how to spend (i.e. promotions, airdrops, bug bounties, security audits, fundraising, etc.).

Mining Balance Tokens by borrowing

To mine BALN through borrowing, you must meet the following qualifications:
    Deposit collateral into Balanced
    Borrow pegged assets from Balanced
    Be at or above the minimum collateralization ratio of 285%
After meeting the above qualifications, the formula to calculate an individual’s mining rewards on any given day is a function of the amount of debt they have in Balanced relative to the total debt. Here is the precise formula:
Mining rewards = (your debt / total debt on Balanced) x BALN allocation to borrowers

Liquidity mining on the decentralized exchange

The Balanced DEX is an automated market maker, a style of decentralized exchange made popular by Uniswap. To qualify for liquidity mining rewards, users must provide liquidity into the incentivized liquidity pools on the Balanced exchange, as detailed in the Distribution of Balance Tokens section. The liquidity provided by users is utilized to have an offer price available on both sides of the trading pair.
For example, liquidity provided to the sICX/bnUSD pair is used to buy and sell both sICX and bnUSD as trades are executed against the pool. The price offered by the pool is based on the ratio of assets within the pool. This is different from traditional order books, where traders place a specific limit order at a specific price.
To calculate the amount of mining rewards earned by a liquidity provider:
Liquidity rewards = (your liquidity / total liquidity) x BALN allocation for that pool

Entitlements of Balance Tokens

In order to receive any of the entitlements associated with holding Balance Tokens, one must first stake BALN or deposit them into a liquidity pool. With this policy in place, only users of Balanced will be entitled to the benefits associated with Balance Tokens.

Network fees

These are the fees associated with Balanced. All fees are adjustable via a vote by BALN holders:
    0.30% decentralized exchange fee. Charged to users when trading on the Balanced decentralized exchange.
    1.15% origination fee. Charged each time a borrower mints new pegged assets.
Network fee distribution can be activated by BALN holders after launch. At launch, fees will be collected in a contract awaiting instructions from BALN holders. As an example, here's what the future distribution of fees could look like:
    60% to qualified Balance Token holders
    40% to the DAO fund, managed by Balance Token holders

Governance

The governance powers of Balance Token holders include, but are not limited to:
    Adjusting fees
    Adjusting fee distributions
    Adjusting inflation allocations
    Adjusting the unstaking period of Balance Tokens
    Adjusting Loan to Value (collateral ratio) requirements
    Adjusting the Balanced governance process
    Transferring Balanced worker tokens (BALW)
    Spending assets held in the DAO fund
    Adding new pegged assets
    Delegation of the sICX held in Balanced
View the Governance section for more details.
Last modified 1mo ago