Token Value Flow
Last updated
Last updated
The Nabla protocol has a token value flow that balances incentives between all major stakeholders and incorporates the learnings of the latest wave of token designs.
Nabla AMM generates fees based on trading activity, levying (on most pools) a 0,05% fee on every trade. These fees are initially split 80-20 between liquidity providers (LPs) and the protocol.
The protocol’s fee split will initially be used for the following: 1.) Deposit into the respective Backstop Pool as protocol-owned liquidity (20%)
2.) Increase the liquidity in the $NABLA-$ETH pool (60%). This will initially be done by pairing the earned fees with $NABLA from the treasury, later by buying back $NABLA from the market with half of the earnings and pairing them with the other half.
3.) Protocol development (20%) Changes about the fee split and fee allocation are for governance to decide. The buyback part ensures continuous buying pressure for $NABLA, and an ever-improving token liquidity. But at a later stage (once protocol revenues are significant, and $NABLA liquidity is healthy), governance might as well decide to replace the “buyback to increase liquidity” with a “buyback and distribute as staking rewards” mechanism.
