Following our last article, we unveiled how Nulswap works and the mechanisms involved, in this article we will address the importance of $NSWAP and how both are interconnected.
What is $NSWAP?
We believe that all tokens must have involvement in the product they are associated with and that is why we’ve created mechanisms between the Nulswap Liquidity Pools and $NSWAP which will be detail in the following points.
NSWAP is the new NRC-20, a representative asset of Nulswap, a utility and governance token with deflationary mechanisms.
Representative Asset: All $NSWAP holders will receive a percentage of the fees (0.05%) of all transactions that take place in Liquidity Pools ( Swaps ).
Utility: To participate in the staking mechanisms, $Nswap will be the base token needed. e.g. Nswap earn Nswap; Nswap earn Token A; Nswap earn Token B etc.
An eternal and autonomous utility will be associated with Liquidity Pools in two ways:
- 0.05% of transaction fees in Liquidity Pools will buy back $NSWAP and distribute to $NSWAP Stakers through our automated mechanism (Interconnected with Representative Asset)
- With our innovative mechanism, ALP (Automated Liquidity Provider), when it reaches a considerable amount (e.g: 200k, 500K Nuls of Liquidity in pools), it will stop providing liquidity and instead buyback $NSWAP tokens to Burn or Share to the stake contract.
Governance: Our vision is focused on distribution and decentralization and as such we believe that the community should have the power to govern and vote on important decisions such as percentages of fees, burns or shares, projects to add to staking, and others. However, we believe that there must be a growth of the platform and an increase in $NSWAP holders for it to become a success. Between 6 months and 1 year, the governance system will be gradually implemented and this waiting period of six months is to ensure too that enough $NSWAP is distributed to the community.
It is important to note that $NSWAP has a 1% fee on all sells to encourage hold and fight inflation: 0.50% share to holders and 0.50% burn.
$NSWAP distribution and vesting periods
Nulswap is the first Permissionless and Decentralized Crosschain AMM (automated market maker) built on NULS. Bringing Next-Generation pool fee structure to solve impermanent loss and ensuring liquidity over time as well as allowing users to exchange any asset of most blockchains on Nulswap.