Tokenomics of Deflation
With the tokenomics of deflation, SAKE can entitle liquidity providers and traders to continue earning the benefit of the protocol development, and maintain the long-term value for SakeSwap adopters.
SAKE token has a limited total volume to avoid dilution and maintain project sustainability.
Sake Burn and Reward Distribution
SakeSwap charges a 0.3% fee on each transaction. 0.25% goes directly to the active liquidity providers, while the remaining 0.05% gets converted back to SAKE (obviously through SakeSwap). 90 % of the remaining 0.05 % will be burned and the rest 10% will be distributed to SakeBar participants who deposit their SAKE to SakeBar. (SakeBar will be replaced by LockBar. The LockBar will distribute every 12-month.)
ILO is a fundraising service for projects. There are two ILO Access types which are Public and SAKE Holder Exclusive. SAKE holders can access more ILO projects. After successful ILO, 3% of LP will be charged when liquidity providers withdraw their LP Token. The charged 3% LP Token will be used to buyback and burn SAKE.
The SAKE token has two functions, which are entitling SAKE holders to governance rights and a portion of the fees paid to the protocol. Eventually, SAKE holders will own the protocol. SAKE tokens can entitle liquidity providers and traders to continue earning the benefit of the protocol development, which means the early adopters will be significant stakeholders of SakeSwap. Meanwhile, SakeSwap involves tokenomics of deflation to support the token price from a structural perspective.