In the rapidly evolving crypto landscape, establishing and maintaining token value is crucial for Web3 projects. ApeX Protocol has announced comprehensive measures aimed at ensuring sustainable unlocking, repurchase, and increased functionality of its token, $APEX. These initiatives not only seek to stabilize the token’s market value but also foster long-term growth for its community of investors.
Understanding the Need for Token Value Enhancement
Web3 projects often face challenges when large quantities of tokens unlock simultaneously, which can lead to sharp price declines. Consequently, projects need to implement strategies that safeguard the interests of both early investors and new participants. This is where ApeX Protocol’s innovative solutions come into play.
Introducing ApeX Protocol
ApeX Protocol is a decentralized, non-custodial derivatives trading protocol based on ZK (Zero-Knowledge) technology, developed by Davion Labs. The protocol ensures user asset security through a perpetual contract trading model and is backed by renowned investors such as Dragonfly, Mirana, and Tiger Global. ApeX is committed to enhancing the trading experience while safeguarding user privacy.
$APEX Token Overview
The $APEX token serves as the governance token for ApeX Protocol, with a total supply of 1 billion tokens. A significant portion—23%—is allocated to the core team and early investors, while 77% is dedicated to user rewards and incentives. As the protocol evolves, maintaining the token’s value remains a priority for the ApeX team.
New Mechanisms for Value Enhancement
esAPEX12: A Sustainable Token Unlocking Solution
To address the issues of token inflation and price volatility during unlocking periods, ApeX has introduced esAPEX12. This mechanism allows unlocked APEX tokens to be converted into esAPEX12 tokens, which are locked for 12 months.
- Key Features:
- Investors receive LP tokens proportional to their initial investment, enabling them to earn sales proceeds in USDT.
- New investors can purchase tokens at a 40% discount.
- The release mechanism ensures that $APEX tokens are distributed daily at a 1:1 ratio, promoting stable market flow.
This structure aims to mitigate negative impacts on the token price and promote a healthier market for all stakeholders.
Buyback and Sharing (BBS) Program
ApeX will also implement a Buyback and Sharing (BBS) program, which uses a portion of platform revenue to buy back $APEX tokens from the open market. This initiative will:
- Create continuous purchasing power in the secondary market.
- Allow long-term users to accumulate more tokens.
- Transition rewards from $APEX to stablecoins like USDC or USDT as goals are met.
Transition to Fee Token
In Q4 2024, $APEX will evolve into the fee token for the upgraded Omni trading system. Users opting to pay fees in $APEX will enjoy discounts, while tokens collected from fees will be burned. This deflationary approach is expected to further enhance token value over time.
Conclusion
ApeX Protocol’s comprehensive measures aim to reduce token circulation and bolster its value, benefiting early investors, core teams, and new participants. By introducing sustainable unlocking mechanisms and innovative buyback programs, ApeX is paving the way for long-term value growth and community engagement.
FAQs
What is the purpose of the $APEX token?
The $APEX token serves as the governance token for the ApeX Protocol, allowing holders to participate in decision-making and share in platform incentives.
How does the esAPEX12 mechanism work?
esAPEX12 converts unlocked APEX tokens into esAPEX12 tokens, which are locked for 12 months, helping stabilize the market by controlling token circulation.
What is the Buyback and Sharing (BBS) program?
The BBS program involves using platform revenue to repurchase $APEX tokens, rewarding long-term investors and increasing token demand in the market.
When will $APEX become the fee token?
$APEX is set to become the fee token in Q4 2024, offering users discounts on fees while reducing the circulating supply through token burns.
For more details, visit the ApeX blog.
Original source: ApeX Protocol
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