Incentives

A fundamental aspect of the x(3,3) DEX model is the inclusion of voting incentives as a core feature. SHADOW implements two types of voting incentives within the system:

1. Vote Incentives: Users and protocols have the ability to offer incentives to voters, influencing them to vote to allocate emissions to specific token pairs. In exchange for their votes, the xSHADOW holder receives a proportionate distribution of the voting incentives provided to the relevant pair. This market based mechanism allows stakeholders to shape the allocation of emissions according to their preferences and strategic interests.

2. Gauge Incentives: In addition to emissions, tokens can be directly offered as incentives to liquidity providers (LP token stakers). This incentivizes the growth of liquidity in specific token pairs, primarily benefiting protocols seeking to bootstrap liquidity efficiently on SHADOW. By offering gauge incentives, new and existing protocols can attract liquidity and promote the development of robust trading pairs.

These incentive mechanisms empower users and protocols to actively participate in shaping the SHADOW and Fantom Sonic ecosystem, fostering liquidity provision, and driving value to specific token pairs and Fanton Sonic communities. This mechanism promotes an inclusive and dynamic environment where stakeholders can engage in strategic collaborations and mutually beneficial arrangements.