| Token Economics
Last updated
Last updated
The token economy is a central component of a DEX and a key factor in its long-term success or failure. $METRO is the native Reward and Governance Token of Metropolis which can be earned through farming, via the initial $METRO Fairlaunch or by purchase. The central use case for $METRO is to stake it for real yield from protocol fees and to vote on 30% of total $METRO emissions on the DEX.
Liquidity Providers (LPs) earn fees directly from all trading activity on Metropolis as well as $METRO tokens through Simple AMM farms and Liquidity Book DLMM farms.
70% of $METRO token emissions will be distributed to major pools managed by the protocol.
30% of $METRO token emissions are controlled by $METRO stakers. Projects can permissionless bribe $METRO stakers to vote for a $METRO farm.
$METRO can be staked for real yield (payed in $USDC) from fees earned by the protocol through all trading activity on the DEX. Through a locking mechanism in the staking contract a multiplier is applied to the earned fees. The longer the locking period, the higher the multiplier to the staking rewards (max. 365 days = 3x multiplier).
$METRO stakers need to lock their $METRO token for a minimum of 90 days in order to be eligible to vote in 2 weeks long epochs. $METRO voters can vote on Simple AMM pools as well as on Liquidity Book DLMM pools. If a minimum voting threshold is reached for a pool, it receives a farm with $METRO emissions.
With each epoch, the allocation of the 30% $METRO emissions is reset and gets voted on again. Projects or individuals can bribe locked $METRO stakers to vote for a specific pool. The earlier the vote is casted to a pool with allocated bribes, the more the voter will earn from the bribes.
