Comprehensive measures to enhance token value - ApeX announces new mechanism for sustainable token unlocking and repurchase

24-09-28 11:00

Read this article in 11 Minutes

AI summary

View the summary

Original source: ApeX Protocol

In the crypto industry, various decentralized protocols not only provide basic services in different business scenarios, but also realize their decentralized ecological construction and protocol governance through tokens. Users not only meet their needs through different business forms of various protocols, but also often obtain more benefits through token investment or incentives, or participate in the construction of different protocol ecological governance. Therefore, for various web3 projects, in addition to providing basic business services and functions, it is also particularly important to build and increase the value of tokens. Whenever the token unlocking period of the early institutional investors of the project expires, large-scale and sudden token unlocking often brings large negative fluctuations to the token price. How to solve this problem, bring long-term value gains to token holders, and give more secondary investors the opportunity to participate is a very important topic.

Recently, the decentralized trading protocol ApeX Protocol has proposed a series of solutions, released a sustainable token unlocking mechanism, a repurchase sharing plan, and token functionality enhancement measures, which effectively strengthened the market stability and value gain of the project tokens.

Introduction to ApeX Protocol

ApeX Protocol is a decentralized, non-custodial, permissionless derivatives trading protocol (DEX) based on ZK. It was incubated by Davion Labs, an incubator focusing on blockchain and cryptocurrency, and its investors include well-known institutions such as Dragonfly, Mirana, Tiger Global, Jump Trading, Kronos, CyberX, Cobo and M77 Ventures.

As a DeX, ApeX provides users with an efficient trading experience by providing a perpetual contract trading model with an order book model. The non-custodial asset approach achieves true user asset security. Traders’ assets are completely on-chain, and the private keys are controlled by the traders themselves. Relying on the ZK Rollup expansion and security solutions, ApeX ensures the consistency and complete verification of off-chain and on-chain data, ensuring the security and privacy protection of user transactions. It is a complete multi-chain application product in the ZK track. Since its launch, ApeX has been committed to polishing its products. According to the official roadmap, ApeX is about to launch spot trading products that aggregate full-chain liquidity and various new functions to achieve real social transactions.

$APEX Token

$APEX token is the governance token of ApeX protocol, with a total supply of 1 billion. 23% of the tokens are allocated to the core team and early investors, and the remaining 77% are used for participation rewards, ecosystem construction and liquidity incentives for platform construction. APEX holders have the right to participate in the governance of the platform and share the incentives of the protocol. As ApeX continues to update its products, it is also worth paying attention to what measures the team will take to ensure the stable and positive long-term development of its tokens.

According to the information released by ApeX today, a series of strategic token economic update plans will be launched to build and enhance the value of the token $APEX.

esAPEX12—Sustainable Token Unlocking Mechanism

Aiming to solve the problems associated with token inflation and price volatility during the unlocking phase, ApeX has launched a new token lock-up and sale product, esAPEX12, which is a sustainable unlocking solution for the core team and early investors. The ApeX team has established a token lock-up and sale pool ($esAPEX12 pool) on the Arbitrum network, which locks the unlocked APEX tokens for 12 months and converts them into esAPEX12 tokens, which third parties can invest in and purchase, thereby achieving orderly management of token circulation and long-term price stability.

When the unlocked tokens are deposited into the esAPEX12 pool, investors and the core team receive LP tokens proportional to their initial investment. These LP tokens grant them the right to receive sales revenue in the form of USDT.

To give new investors a better chance to hold tokens, buyers can enjoy a 40% discount. At the same time, its release mechanism is to distribute $APEX at a ratio of 1:1 every day, keeping $esAPEX12 flowing into the market steadily and predictably.

This mechanism mitigates the potential negative impact of token unlocking on the price of $APEX, balances the interests of the secondary market and project investors, and is conducive to the long-term vitality and construction of the project.

In addition, ApeX also announced its buyback and sharing plan, which strengthened the positive impact on token holders' incentives and token prices.

$APEX Token Buyback and Sharing (BBS) Plan

In addition to the sustainable unlocking mechanism, the buyback and destruction of ApeX tokens has also been ongoing. At present, the third destruction of ApeX tokens has been completed, and the total supply of tokens has dropped to 600 million. The strategic goal of reducing the supply of APEX tokens by 50% has been steadily advancing.

According to the official announcement of the upcoming buyback and share program, ApeX will use part of the platform revenue to buy back $APEX tokens from the open market, and then distribute them as rewards to participants who put their tokens into the buyback and share (BBS) pool.

This approach achieves two key goals: it creates continuous purchasing power in the secondary market and helps long-term users accumulate more tokens, thereby increasing their overall holdings. It can be seen that the buyback and share (BBS) model will become an important part of the strategy to enhance the value of $APEX tokens and ensure continued user growth.

According to the official plan, as ApeX reaches the goals of the token buyback and destruction mechanism, rewards will be transferred from $APEX tokens to stablecoins such as USDC/USDT. With this in mind, the BBS program provides an excellent opportunity to accumulate $APEX tokens at a favorable time, giving users the opportunity to obtain greater returns in the future.

$APEX will become a fee token

In addition, ApeX announced that in the fourth quarter of 2024, $APEX will become a fee token on the upgraded trading system Omni.

Users who choose to use $APEX to pay fees will enjoy fee discounts. In addition, $APEX tokens collected from fees will be destroyed. This deflationary mechanism reduces the circulating supply of $APEX and will better promote the appreciation of token value over time.

The series of measures announced by the official are all aimed at reducing token circulation and increasing token value. The sustainable unlocking mechanism of tokens combines the interests of early investors, core teams and a wider range of token holders, laying the foundation for its sustainable value development. It also provides users with more opportunities to hold tokens at low prices, which is conducive to greater returns for token holders in the future. The repurchase and sharing plan ensures the purchasing vitality of $APEX tokens in the secondary market and gives users more opportunities to accumulate total token holdings. At the same time, ApeX tokens will become the fee tokens of its platform, and the enhancement of functions and practicality also guarantees the future value of tokens. It can be seen that the value of ApeX native tokens will have a predictable long-term stable growth performance, which is worth keeping an eye on.

Source: https://www.apex.exchange/blog/detail/APEX-Tokenomics-Update-esAPEX12-Deployment-and-Launch-of-the-Buy-Back-and-Share-Program