To the Niubiswap Community,
As always, we at Niubiswap are always looking for cutting-edge ideas and innovation to further our platform. We have seen the effects the tokenomics of NIU have had on its price and the sustainability of the Yield Farming Platform we provide. We’ve already voted to change the NIUPOT system, along with burning tokens to reduce the dilution of the total token supply, but we’re looking to go a step further and adopt a more effective way to sustain yield farming while providing value to the network.
With plenty of options to consider, we ran across a concept that could drastically effect the Niubiswap platform in a positive way. This concept is based on the fact that many DeFi YF platforms are negatively affected by bots, front runners, and idle holders who aren’t contributing to the network. The way in which NIU can get a hold on its supply being too hyperinflated is by changing the tokenomics slightly while adding incentives to participate in staking and governance voting.
We will be implementing a 4% deposit fee to the buy back program that is currently being run at NIU on all non NIU pairs. The fees calculated by the platform will be used to buy back tokens and burn them. This will also decrease the tokens supply while also putting even more back into the communities pockets.
The innovation doesn’t stop there. We want to introduce our NIU Vault as we know many of our users are currently staking tokens like DOT, BTCB, BNB and ETH in our LPs or Hongbao Zone. We want to utilize these idle tokens in our pools to find higher rewards to bring extra gains to our holders. When you choose to get the added yield incentive we will lock the NIU in our NIU Vault. When staking in our NIU vault, users can choose the duration of the commitment ranging from 3 day, 7 day, 30 day, or 60 day period, the longer the holding period the higher the rewards/yields obtained from holders! The result of this is users start gaining NIU from staking in NIU in addition to the extra rewards obtained in the NIU vault. This in turn will help users lock in NIU for longer periods of time, which will reduce selling pressure while providing high % yield.
This is what we believe will be a large draw for new community members and those interested in the project, as they will be able to stake X amount of tokens and receive extra yield on their inactive crypto. It pays to be a hodler!
Our ultimate goal is to generate more rewards for our holders in our NIU Vault that are staking and participating in the platform. With the communities help, we can generate an ecosystem with valuable passive yield that our holders can receive directly. The fees calculated by the platform will be used to buy back tokens and burn them. This will also decrease the tokens supply while also putting even more back into the communities pockets.
These new initiatives will not only increase NIU farming rewards, but also other altcoins rewards that aren’t found elsewhere. Implementing this new economic change to the Niubiswap platform will still need fine tuning and community support.
Please VOTE on your thoughts of Niubiswap implementing NIU Vault into our core features.
https://snapshot.org/#/niubiswap.eth/proposal/QmbNvpB6CYCsEYGcJy5UDuDN2PbGdxwvYtUgtyEiGzKnEk
