TL;DR:
Token Upgrade: We’re upgrading the $IDEX token, available in the future to existing token holders as a 1:1 swap with no time limit for migration. After six years in the space, this is our play to reward our loyal community and stay competitive in the marketplace as we near launch.
Points Program: We’re introducing a Points Program that rewards your trading activity, and unlocks new tokens to underwrite ecosystem incentives. The more active you are, the more $IDEX is unlocked.
Enhanced Staking: IDEX Staking is also getting an upgrade. We’ll convert 50% of trading fees from $USDC to $IDEX via the open market and distribute to stakers.
$IDEX Token Liquidity: Get ready for one-click swaps to $IDEX from multiple chains via our $IDEX/$USDC liquidity pool on our very own Layer-2, XCHAIN. You’ll simply hit “BUY $IDEX” and swap to $IDEX in one click.
Supply for Ecosystem Incentives: We’re bolstering the supply to support the new Points Program and create an incentives warchest to compete with other newer protocols in the space. This liquidity will be exclusively dedicated to ecosystem incentives like trading rewards that directly benefit the community.
Introduction
As we march toward our highly anticipated Testnet Beta launch, we’re excited to share that we’ve taken a significant step forward in that transformation with an upgrade to the IDEX Token 2.0, which is becoming the foundation for a whole new ecosystem. This initiative is a natural evolution of our commitment to innovation and ecosystem growth as well as all of you, dear degens — and we believe it will help reaffirm and secure our competitive position moving forward.
Wait, there’s a new IDEX token?
Yes, IDEX Token 2.0 is coming! We’ve reached a crossroads as we lay out our go-to-market strategy as the all-new IDEX, and the path forward calls for a pretty big pivot — one that we’re confident adds a giant stack of opportunity for the community. Let’s dig in and find out how it’s being rolled out and what’s in it for you.
How do I get the new token?
Existing token holders are invited to do a 1:1 swap in the future to upgrade to the new $IDEX. We’ll provide timelines and specific dates soon so stay tuned. And good news: there’s also no time limit for migrating your tokens. We strongly believe you shouldn’t lose your tokens because you were touching grass.
So why are you guys making changes?
Well to be honest, we’ve been around for over six years which has its benefits and challenges. On the one hand, we’re pretty damn proud to have evolved along with the DeFi landscape for this long. We’ve also done a great job of managing our treasury, and are happy to report that we still have approximately 17% remaining.
On the other hand, that’s quite a long time to be kicking around in crypto and we feel the need to take some bold steps to stay competitive. We considered several options — and some people even told us to rebrand altogether and launch a brand-new token. But we felt that idea didn’t have any merit for us – it just didn’t align with who we are. We want to take you guys with us, not leave you hanging. In the perps game, liquidity is king. And in order to win in this highly competitive market and secure a top spot in the space, we need to be more liquid than the next protocol to fund attractive ecosystem incentives. It’s the best for token holders and the protocol, so it’s a classic win-win.
Tell me more about attractive ecosystem incentives. I liked that part.
Okay, let’s get into that. We’re introducing a new Points Program to create a system to underwrite our incentives pool and also help dictate the size of that pool. As a trader on IDEX, you’ll be rewarded for the activity you contribute. When you trade more, you’ll not only be rewarded more – but it’ll also signal to us that you’re excited about IDEX and want to expand that incentives ecosystem. Additional details about the Points Program will be shared by the team soon so stay tuned.
Sweet. And what’s the deal with staking?
Staking is a critical component of the ecosystem and now will also have the bonus of moving $IDEX into the hands of long-term supporters. Here’s how it’ll work. All trading fees will be collected in $USDC, as they have been. But now, 50% of all trading fees will be converted to $IDEX via the open market. These tokens will then be distributed to stakers like you — essentially transferring tokens from short-term-focused to long-term-focused participants. They’re also a key component of building out the ecosystem — including XCHAIN, our very own Layer-2, which we’ve detailed in other announcements. In the coming weeks, we’ll have more to share about how XCHAIN will expand our on-chain capabilities.
Copy that. Anything else?
Yup, got some more upside. So in addition to putting more $IDEX in the hands of long-term holders, this upgrade also introduces an $IDEX / $USDC pool on our own XCHAIN. We’re massively excited about this, and think you will be too. So why is this cool: because you’ll be able to just hit “BUY $IDEX” in our user interface and swap whatever tokens you have from a plethora (yes, we said a plethora) of chains straight into $IDEX. Who doesn’t love an easy one-click solution!? Like we said, excited. And on our end, this pool provides on-chain access and necessary liquidity for $IDEX as well as arbitrage opportunities — so another win-win.
This is all awesome. But how are you funding this ecosystem again?
We’re upgrading the $IDEX token smart contract and bolstering the supply to generate new possibilities within the ecosystem and directly support our new Points Program. This move gives us an incentives warchest so that we’re able to compete with — and ideally outpace — other, newer protocols. We’re exclusively allocating all new tokens for ecosystem incentives, because a vibrant trading environment is absolutely critical to all of our success. You’ll see this in the form of Market Maker (MM) rewards, trading rewards and in the near future, trader-focused decentralized applications (dApps). We want to build a robust community where a rising tide lifts all boats, and when we win, you win.
I’m with ya, but like how many tokens are we talking?
Well, the exact number will be unlocked by you guys. You’ll essentially be voting with your trading activity on the platform via the Points Program, which will be tied to specific KPIs (Key Performance Indicators) that’ll unlock a new batch release of $IDEX tokens. As we mentioned, each and every new token unlocked will go directly toward product incentives — never development funds or the team personally. No matter what the demand for new tokens is as generated by you, we’ll cap the supply increase at 30%. Full stop.
Got it. What’s the timeline for those incentives?
Incentives will be released on a rolling timeline over the course of three years. This allows for growth over time vs. a one-time incentive increase.
Too long; did read. Wrap it up…
We’re really excited to be rolling out a new ecosystem that surges us forward on the functionality side and keeps us competitive, while also organically generating unprecedented IDEX rewards for our awesome community. The introduction of an IDEX Token 2.0 is more than a token upgrade — it represents our recommitment to our core values and to all of you. We believe that this strategic move will align us with a successful outcome as well as our long-term vision of product market fit and adoption. As we gear up for our launch and build on what we’ve already created together as a community, we’re excited about the opportunities that lie ahead and the many ways we can contribute to the evolution of perp dexes and DeFi in general. As always, thanks for betting on us, GOATs.
Questions? Comments? Hit us via our links below.
About IDEX
Established in 2017, IDEX has set the standard as the premier high-performance decentralized exchange. The platform combines the speed and efficiency of traditional trading systems with the transparency and security of blockchain technology to create an unparalleled trading experience. IDEX is built for all traders, providing instant execution, millisecond latency and gas-free settlement, while allowing users to maintain full control and custody of funds.
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