Tokenomics Overview
Last updated
Last updated
Mesh Protocol's tokenomics are carefully crafted to create a robust and interconnected ecosystem that rewards participation, ensures sustainability, and fosters growth. With a strategic allocation of protocol revenue and innovative token utility, we've developed an economic model that aligns the interests of all participants—traders, liquidity providers (LPs), and token holders.
Our protocol will generate revenue through an ecosystem of features, such as DCA, Limit Orders, Liquidity Aggregation, and our proprietary DEX. This revenue is thoughtfully channeled back into the ecosystem:
50% flows into $MESH and $indexMesh Staking, offering native $SOL yield and rewarding our token holders for their commitment to the protocol with governance power.
30% is directed to the $MESH Index Fund, which provides a backstop for the $MESH token price and facilitates token swapping.
20% goes into the $indexMESH Index Fund, supporting the swapping of $indexMESH and further stabilizing the token's value.
These percentages can and will change over time via governance voting.
$oMesh acts as the primary incentivization token, distributed to LPs and traders engaging with our protocol, as well as through airdrop campaigns. This token can be converted into $MESH and $indexMESH using $SOL, allowing holders to buy into the ecosystem, participate actively in its governance, and earn revenue share by staking. The conversion process is supported by attractive discounts, enhancing the protocol's growth while safeguarding the value for $MESH holders.
Both $MESH and $indexMESH token holders can stake and earn governance power to play an integral role in Mesh's ecosystem. They have the power to influence protocol mechanisms, including the pivotal ratio changes between tokens revenue share, index fund shares, and $oMesh farming rewards. Staking either token grants holders a share in the protocol's revenue in $SOL, and the ability to swap tokens for underlying assets.
