Why are we launching a token?
Why are we launching a token?
Rumi Finance aims to create a sustainable, fully decentralized financial ecosystem that aligns incentives between the protocol and its users. The Rumi token is designed to play a pivotal role in the Rumi Finance ecosystem, driving user engagement and ensuring the long-term success of the protocol. By launching a token, we aim to achieve the following objectives
Fund the development of the protocol: The public token sale will generate funds to support Rumi Finance's ongoing development and growth.
Bootstrap the core functionalities of the protocol: The Rumi token will be used to incentivize users to participate in the lending module, yield strategies, and provide liquidity to the Rumi token pool 2. This ensures the smooth operation of the platform from the very beginning while we grow the platform. Done right, this system can help Rumi Finance scale to a point where protocol revenues beat emissions and become value accretive.
Reward long-term token holders: The tokenomics design will emphasize the benefits of holding the Rumi token long-term by capturing the value of the protocol and distributing revenue to token holders. We want to reward loyalty, not mercenaries
Governance: The Rumi token will be instrumental in achieving an orderly transition to a decentralized governance model for the protocol, allowing engaged users to have a say in the future direction of the platform.
Decentralization: By distributing control and decision-making power to the token holders, we can ensure that Rumi Finance remains resilient, adaptable, and responsive to the needs of its users.
To achieve these objectives, the Rumi token will be designed with the following key principles in mind:
Incentive Alignment: We want to make sure that the tokenomics structure encourages users to act in the best interests of the Rumi Finance ecosystem, promoting long-term growth and sustainability.
Token Utility: The Rumi token should have clear use cases and provide tangible benefits to its holders. This includes participation in protocol governance, revenue sharing, and boosting rewards in the lending module and yield strategies.
Avoiding Mercenary Capital: The design of Rumi's tokenomics should deter short-term profit-seekers who might harm the protocol's long-term prospects. This can be achieved by gradually distributing rewards, good airdrop design to incentivise loyal users, promoting long-term holding, and implementing mechanisms that encourage commitment to the protocol.
Token Liquidity: Ensuring the Rumi token has ample liquidity is crucial for enabling seamless transactions, reducing price volatility, and allowing users to efficiently interact with the protocol. This includes the ability to seamlessly access the Rumi token across all the blockchains we operate from.
Simplicity: The tokenomics design and user experience should be simple to understand and use, allowing users to easily navigate the platform and interact with the Rumi token.
Last updated