Cellframe Tokenomics

4 min readMay 24, 2022

The updated tokenomics assumes revenue not only from the provision of services but also from liquidity. Additional rewards are also coming from the long-term LP-holding.

We have changed the reward ratios to bring more liquidity to the UniSwap and Pancake pools. To make sure it doesn’t affect the volume of rewards for master node holders, we’ve invented a mechanism to issue mCELL tokens so that master node holders can choose whether to stake a single CELL, or pair it with ETH, BNB or stablecoins — either way, they will get their mCELL to process transactions and provide services (and earn on it too).

✓ Emissions

Rewards

For structuring a reward system for stakers, the plan is to emit 3M tokens next year. Then there will be a vote on the issuance for 2024 and beyond. The basic scenario is to halve the emission to 1.5M for 2023, with a further halving each year. It can be revised depending on the success of the ecosystem development and the sentiments of the holders.

The distribution of the issue will be as follows:

1.3M for Uniswap pairs:

1M for CELL/ETH pair
0.3M for CELL/USDC, CELL/DAI, and CELL/USDT

0.7M for Pancakeswap pairs:

0.5 M — CELL/BNB pair
0.2 M — CELL/BUSD, CELL/DAI, CELL/USDT

1M for single-sided staking.

Reserves

To build a viable ecosystem in the long term, there will be an emission of reserves, 2 million $CELL. One million will be emitted in mid-2023, and one million will be emitted in mid-2024. These funds will be used to develop the project.

✓ Additional rewards and bonuses

When liquidity is provided under the staking program, points will be based on for the duration of locking of funds: 15% for every 3 months of locking. The maximum period of fund locking will be 2 years, so the maximum points that can be received is 120%, almost a quarter of the issue. The rewarded $CELL can be withdrawn immediately, or you can leave it in the same account to increase your stake even more and increase your income even more. You can also divide it into a convenient proportion, and decide which part will remain and which part will be available for withdrawal at once.

Bonuses for the duration of providing liquidity before staking program launch

In addition, more points will be awarded for holding an LP in a Uniswap or Pancakeswap pool before the Cellframe staking program is launched. Each day the LP token is held until it is locked in a stake or auction, an additional 0.16% points will be awarded. If the LP was created a month before the staking program launch, it would give an additional 5% points, and if it has been on the LP for ten months, it will give an additional 50% points. The 50% is the maximum, so if you have LP tokens cumulatively worth 1000 CELL before the launch of staking, the points for these tokens will be counted as 1500, and the reward for this stake will be the same as the award for the 1500 CELL placed in the pool at the start of the staking program.

✓ APY calculation examples

Reward for the duration of liquidity provision before it is used in the staking program.

Single-token

1 000 CELL locked for 1 year gives 1 000 + 1 000 * 60% = 1 600 points.
Let’s say the total points of other participants in single token staking equals 2M points, so this staker will have a reward of 1 000 000 / (2 000 000/1 600) = 1000000 / 1 250 = 800 CELL per year.
With an initial investment of 1 000 CELL, it gives 80% APY.

Pair

CELL/ETH pair for a similar amount that was staked for 3 month before staking program and then locked for 9 month, thats gives
1 000 + 1 000 * (15 * 3 + 3 * 5) % = 1 000 + 1 000 * 60% = 1 600 points.
Let’s say the total points of other participants in CELL/ETH equals 1.5M points, so this staker will have the following rewards:
1 000 000 / (1 500 000/1 600) = 1 000 000/ 937.5 = 1 066.66667 CELL per year.
With an initial investment of 1 000 CELL, it gives 106.666667% APY

✓ How to bring up a master node for staking participation?

The participants of the staking program and auctions will get additional rewards in the form of an airdrop of special mCELL tokens. The mCELL token will not be transferable, nor will it be tradeable, exchangeable, or withdrawable. Its only purpose is as a stake for master nodes. This means that there will be no need to choose between the staking program or the auctioning of the opportunity to raise a Master Node. Everyone who participates in the staking program will also be rewarded as a percentage of the value of the services provided and transactions processed by the Master Node. This award is an extra bonus and is not a substitute for the CELL awards but rather a supplement.

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