The Buridan’s ass and the token economics dilemmа

The medieval Arabic philosopher-theologian Al-Ghazali described a choice between two identical alternatives: Suppose two similar dates in front of a man who has a strong desire for them, but who is unable to take them both. Surely he will take one of them through a quality in him, the nature of which is to differentiate between two similar things. All the distinguishing qualities…like beauty or nearness or facility in taking, we can assume to be absent, but still the possibility of the taking remains.

We spend most of our time in research and development. Some thoughts are very obvious and lying on the surface, however, do not come before our eyes immediately.

We conceived our own token as a powerful main coin of the Gravis Finance project. We love and know how to crunch numbers, and the primary task was to ensure a harmonious issuing and normal distribution of coins in order to prevent a situation with a huge number of tokens in free circulation, which users received for an ultra-low price. This could lead to a strong dump of the token, but users and the team would remain in the red. And we reduced the distribution, reserves, liquidity, coin issuance and other indicators. However, we felt we had not worked out the economic and practical part well enough.

We put the computers aside, sat down at a large virtual table, took pencils and beer, and tried to imagine what the perfect project and its token should look like.

First, we took economic models from real life and superimposed them on practices from DeFi projects. As a result, we concluded that the main token of Gravis Finance will be with the ticker GRVS, its supply will be the final 150M tokens, and part of it will be ritually burned every year on its birthday. It will perform the functions of governance. But for the farming we conceived one token was not enough, and to support the project infrastructure we need a token for which supply will not be limited. So the GRVX token was born, it will be the blood of our ecosystem. No, we won’t sell it 😂 😂 😂 You can get it only as a result of farming or staking. Below we provide a list of features.

Buyback

50% of the exchange commission tokens (0.05% Vault Fee) will be used to buy back GRVS tokens on the Gswap open market, 50% of the purchased GRVS tokens will be burned quarterly, 50% will be used to encourage users to stake.

GRVX — a derivative token with unlimited supply

A derivative GRVX token with unlimited issue will be issued based on the GRVS token. The GRVX token will be used for staking in IDO for the purpose of obtaining allocation and some other purposes (see below).

GRVX token farming

The GRVX token can be obtained by staking GRVS tokens for a certain period of time. It is possible to freeze both the original GRVS token and the derived GRVX token after mining is completed. GRVX tokens can also be obtained by staking LP tokens of the Gswap platform.

Migration Reward

When using our migration functionality, the user has the option to send our LP tokens not to their wallet, but to a special contract. That contract locks this user’s LP tokens and will issue an NFT card. This card allows the user to participate in the GRVX token farming pool. To get LP tokens back the user needs to burn the NFT card, thereby stopping the farming. (optional) If the user wants to collect the reward or their LP tokens before a certain deadline, the amount of the reward can be reduced.

GRVX Reward for LPs

The GRVX token will be used to generate income from farming and reward large liquidity providers. At the start of the reward program the liquidity pools will be selected. Users will be awarded with GRVX tokens for providing liquidity as follows: the user stakes LP tokens of a certain pool for a certain period, and after this period the user receives back their LP tokens and a certain number of GRVX tokens.

Burning GRVS tokens to accelerate the farming of GRVX

The total number of GRVX farmed through LP token staking can be increased by burning the original GRVS tokens. Example: a user expects to receive a GRVX reward of the equivalent of $100 for staking LP tokens. We offer the user an option — they can burn GRVS tokens in the amount of $100 and in return get 3x (or more) GRVX tokens.

IDO Constructor

The GRVX tokens are used for IDOs. Project founders can go to a special section of our platform. They create a pool and specify the number of GRVX tokens they want to collect, and the deadline. There is a limit on the maximum number of GRVX tokens that a single user can supply to a pool (protection against “whales”). Also, the project founders put a certain number of their own tokens in the sales contract. After the collection period ends the sales contract rewards the participants with the project’s tokens. The amount of tokens is calculated as the proportion of the user’s shares to the total amount of GRVX in the IDO contract.

Governance

The GRVS tokens can participate in managing the Gravis Finance DAO through a public vote. A user can vote for:

• listing of projects for IDO
• listing of the token in the Gravis wallet (mobile application-will be developed later)
• projects getting into the top trending projects on our main page
• etc.

GRVS as a cross-chain pool token

The cross-chain swap functionality uses the GRVS token as a liquidity pool token. GRVS tokens pooled on different networks enable the cross-chain exchange.

Auto-farming

TBD

NFT auction via GRVS

Standard auction functionality, but with additional restrictions: a minimum asset price (for example, 0.5 GRVS) and the price increase step is equal to the minimum price. This makes it easy to compare the values of assets and exchange them.

NFT-GRVS Exchange

Users can change one NFT in network A for another NFT in network B through a certain rate in GRVS. GRVS is a cross-chain token and has a 1:1 rate between different networks. The main target assets are in — game items.

Discount on the platform fee for GRVS

For tokens that have a pair with GRVS it is possible to receive a discount on the platform’s commission (0.05%). The discount works as follows:

• a user (swapper) pours their GRVS tokens into a special pool
• when swapping a token that has a separate pair with GRVS, 50% of the commission amount (0.025% of the amount of the original token) is deducted from the pooled GRVS tokens of this user.

Mobile App

Main features are:

• wallet (similar to the Metamask or Trust wallet)
• interaction with DeFi products — the main focus is our own products, mainly Gswap and IDO
• trading terminals

Two tokens timeline

Of course, we can’t develop and implement all the features at the same time. Therefore, we have built up an additional time line to our roadmap, which reflects the appearance of these features in chronological order. We may change or exclude some of them because we cannot predict how the markets and blockchain will develop in the future. But as of May 2021, we see it this way:

Really hope that this article helped you to understand the Gravis Finance token structure and Philosophy. Anyway you can ask you questions in our official Telegram group and Twitter.

Official Site: Gravis.finance

Telegram Group (en): t.me/gravis_finance

Twitter: https://twitter.com/gravis_finance