Discover the Exciting New Addition to Dubble — Introducing Sustainment Treasury!
Greetings from Dubble DEX!
Our team has been developing an innovative concept that supports $DUB holders and the Dubble token, which in turn benefits the entire Dubble DEX ecosystem. This feature aims to drive the long-term success of both products, making them attractive holds for investors.
It is worth mentioning that the Dubble token is the only Solidity-style governance token with a capped supply. Unlike other forks, its emissions schedule is designed to run for approximately 10 years. To maintain the strength of Dubble’s price, which increases liquidity pool APRs on the DEX, we have implemented mechanisms that encourage greater locking of $veDUBBL and incentivize $DUB auto-bribes. As a result, the TVL and volume of the DEX increase, bringing in more $DUB to the pools, further strengthening Dubble’s price, and thus completing the flywheel effect.
Interestingly, the demand for Dubble has been phenomenal!
The “Sustainment Treasury” will operate as follows: We will begin with $300k and invest in secure, proven, blue-chip investments (specific strategies to be determined, but they will be completely unrelated to Dubble or $DUB).
- 20% of the earnings from these investments will automatically compound back into the treasury, while 5% of all $DUB rebases from $DUB in liquidity pools will be directed towards the treasury. This should ensure that the treasury grows at a consistent pace, in addition to the natural growth of blue-chip assets over the long run.
- The remaining 80% of Sustainment Treasury earnings will be used to purchase Dubble and $DUB tokens off the market, pair them and add them to the $DUBBL/$DUB liquidity pool. We will not lock the tokens into $veDUBBL to avoid depriving other holders of their rewards, nor will we opt for $DUB rebases so that all of Dubble’s $DUB tokens can be utilized for farming by everyone else. Here is a visual representation:
The benefits of this approach are significant:
- It reduces the availability of Dubble on the open market, further increasing the scarcity of a governance token that already has a maximum supply.
- It establishes a protocol-controlled “liquidity factory,” enabling Dubble DEX to enhance liquidity while safeguarding the rewards of its loyal $veDUBBL holders.
- It boosts the capital reserves and yields of all $DUB token holders as more capital is invested in farming the same number of $DUB tokens in circulation. This is in addition to other mechanisms that contribute to increasing $DUB’s capital reserves and relative yields.
If we had implemented a mechanism based on Dubble DEX’s trading volume or some other internal factor, a slowdown in the ecosystem would have also slowed down the buybacks. Therefore, we are investing in unrelated assets to populate the Sustainment Treasury. In the event of a significant drop in the Dubble price (which could prompt TVL and volume to exit the ecosystem) unrelated to broader market conditions, the treasury’s yields would purchase more Dubble.
The beauty of this treasury is that its momentum will increase over time. As emission decay sets in and weekly token emissions taper down (as is typical with all veDEXs), the treasury’s returns will most likely remove more Dubble from the market. This would help maintain a healthy price and high DEX APRs.
This approach becomes even more impactful since there are only a finite number of Dubble tokens available. In contrast to other veDEXs with infinite supplies, the Sustainment Treasury would not be constantly trying to “stem the tide” of an unending supply of new tokens hitting the market, which would be a largely futile task. With a maximum supply, each token becomes more valuable, and every buyback increases the value of the remaining tokens in the market.
Buy Back and Build
The Sustainment Treasury can also serve as a long-term strategy for the Buy Back and Build approach. As we approach the end of Dubble DEX’s emissions schedule in 10+ years, the treasury would have grown significantly, and $DUB would be yielding unbelievable APYs through its innovative mechanisms. These factors can be utilized to encourage liquidity on the DEX, even after the end of emissions, while still maintaining the voting power of $veDUBBL. Think of it as a Dubble retirement account. Just imagine the potential worth of a Dubble token at that time!
