Holding mining

In order to enhance the value consensus of DIODE tokens, Diode Mixer has set up the DIODE pstaking pool, which functions as a “revenue aggregator” on the Diode Mixer protocol. Users can continuously receive dividends from the staking pool as long as they deposit their DIODE tokens into the pool, i.e. “holding mining”.

The funding source in the DIODE staking pool consists of two parts:

(1) Mining rewards: anonymous transaction mining and liquidity mining.

(2) External investment: users participating in crowdfunding or purchase DIODE third-party DEXs.

The staking pool’s revenue comes from the “exit penalty mechanism”, which regulates that users are charged a 10% fee for each DIODE withdrawn from the staking pool. The penalty fee charged will be used in the following three ways:

(1) benefits for token holders

(2) adding liquidity

(3) burning for deflation

40% of the fees will be used to reward loyal token holders. In this sense, holding DIODE in the staking pool is a form of mining. The larger the share of DIODE held and the longer users held it, the more dividends. By combining the holding rewards incentive and exit penalties mechanism, Diode Mixer can motivate users to hold DIODE for the long term, which enhances the value consensus of DIODE.

The rest 20% tokens will be burned in the Eater Address. The burning mechanism contributes to token deflation and, in essence, motivates all DIODE holders who are guaranteed that DIODE value remains. This is conducive to building a more loyal DIODE community ecology and is significant to achieve community governance and long-term project development.