Genuine scarcity and token utility is vital for a network to flourish. Polylastic believes there is massive growth potential for elastic finance or EFi. The world of synthetic assets is virtually unlimited and we’ve got our sites set on an enormous marketplace that, despite its size, tends to hide in plain view. Nonetheless, Polylastic believes our overall value proposition and token utility will help bring visibility and needed profile to this emergent sector of crypto.
POLX: A Double Deflationary Token
As an additional characteristic of the POLX token, we will be using a percentage of generated fees to burn POLX. The deflationary burn feature will be accelerated by our tiered network taxation.
Network transactions of any kind generate taxes, of which:
- 20% of these fees will be used to buy and burn POLX tokens (single deflationary)
Index Participants pay a management fee to participate in the index and a percentage of profits upon exiting:
- Polylastic will use a percentage of this revenue to burn additional POLX (double deflationary)
The remaining revenues from both tax and the TBD percentage of management fees and profits will be distributed to POLX holders that provide liquidity as well as those who stake the token.
As the network and index find their footing, this exciting and frankly, aggressive feature will do much to stimulate the ecosystem. Staked tokens will become scarce with each individual POLX carrying more weight and value as time passes. Naturally, the supply will diminish and perhaps swiftly. We believe this type of growth stimulation will be a value add that will augment the native utility.
The POLX token will not be represented in the Index as its utility is best served as a driver of the aggregator and as a reward generating asset. Below, we would like to offer a basic overview of the forthcoming product.
- Polylastic offers exposure to a nascent sector of crypto, EFi or Elastic Finance, via the POLX token.
- Polylastic’s exposure is realized via a weighted basket of EFi assets
- Typical indexes are weighted solely by market cap, therefore, the largest projects comprise the majority of the index
- Project weight in Polylastic is determined by market cap and through a proprietary direct staking.
- Direct staking is used to signal quantifiable support for a given project and a key determinant in weighting.
- The proprietary staking method aims to identify early opportunities for projects with genuine support in order to capture upside.
- Both a management fee and participation in the profits will be distributed to POLX holders, derived from the network tax.
As an aggregator that aims to represent the growing EFi market, Polylastic’s purposeful staking helps to identify early stage projects that have yet to realize their growth potential.
Tiered Network Taxation
- Designating LPs rewards
- Distributed as staking rewards
- Project supporters can be rewarded from pooled fees
- Provides sustainable overall benefit for tokenomics and utility
The network tax utilizes a simple formula (found in our WP) sufficient to stimulate growth and reward the ecosystem. In testing, this formula has demonstrated optimized scaling for fees on transfers both large and small.
Upon redemption, twenty percent of network fees will be used to burn POLX. This deflationary mechanism serves a purpose. The POLX token is a quantitive indicator of support and it is necessary to keep the POLX token dedicated to this purpose. With scarcity as a resource, the POLX supply will ultimately end up in the hands of those who wish to most interact with the network and provide value.
Utility & Conclusion
- Influential support for a given project can only be realized by the staking of the POLX token.
- Spamming and similar methods of support can not influence the index.
- The network’s taxation benefits the overall product and ecosystem.
- To ensure needed interaction, a percentage of the taxes generated will be used to burn POLX.
- The team at Polylastic will be using management fees and profit participation to burn POLX
- The remaining tax and fees will be distributed to POLX LP’s and stakers
Polylastic as an index, and projects like it, are an important component in the maturation of decentralized finance. Much like true cross-chain interoperability speaks to a cohesive and converged digital asset universe, the POLX token’s aim is multifold. Its primary purpose is its function as an aggregator of trending and staple EFi projects as well as a token that needs to confers benefits and rewards to those who hold it.