I have three proposals to encourage users to use Denaria and increase the token’s value.
This comes from the thought: “Why should I buy the Denaria token? With current rules, I could use the app without ever buying the token, which gives no value to Denaria.”
Proposal 1: Fee Incentive for Trading with Denaria Token
Users who trade with Denaria token pay 50% of the fees.
This encourages users to buy the token and adds upward pressure to its price.
Proposal 2: Pre-Launch Points Campaign and Monthly Trading Competition
Denaria Points (DXP) Campaign
Users accumulate points before launch.
At launch, points reset and an airdrop of 5% of total supply is distributed to those who earned points.
The airdrop unlocks over 20 months (5% per month).
Monthly Trading Competition
1% of platform fees is awarded each month (or 2% every April if the launch is in April).
Prize distribution per month:
1st place: 20%
2nd place: 14%
3rd place: 10%
4th place: 8%
5th place: 7%
6th place: 6%
7th place: 5%
8th place: 4%
9th place: 3%
10th place: 2%
100th place: 1%
200th place: 1%
300th place: 1%
400th place: 1%
500th place: 1%
1000th place: 1%
Best trade of the month: 10%
Remaining 5%: distributed to anyone with at least X points
Leaderboards and best trade are visible in real-time in the Denaria app.
Remaining 99% of platform fees:
50% to liquidity providers
30% to buyback + burn
4% to flexible buyback (no burn) → for insurance refill below 80%, future DAO-approved incentives, additional DAO-approved burns, or holding in treasury for unforeseen events
15% to insurance fund (if full, allocation goes to flexible buyback)
Automatic actions:
Insurance fund refill below 80% via flexible buyback
Buyback + burn executed in real-time
Benefits:
LP Security: minimum insurance fund guaranteed
Token Value Growth: buyback + burn and flexible buyback tied to protocol success
Operational Flexibility: handle extraordinary events without compromising stability
Transparency: significant actions approved by token staker votes
Engagement: monthly competitions and annual reward increase participation and trading
Proposal 3: Special Reward for Vegeta3
Award a 5% airdrop of total supply to Vegeta3 for creating these two excellent proposals.
Proposal 1: Fee Incentives for Trading with the Denaria Token
This could be a good way to drive token demand from active traders. However, I think we need to make a broader decision first.
We should define how protocol revenue will be linked to token holders. There are two main approaches: buybacks or lock & earn.
Once this is clear, we can design additional mechanisms to drive token demand in a way that aligns with the core value accrual model.
Proposal 2: Pre-Launch Points Campaign and Monthly Trading Competition
We’ll see whether DXP holders will be eligible for an airdrop. I believe that would be the right choice.
Trading competitions are definitely a good way to enhance community engagement and gamification. I would incentivize them not only with a share of fees, but also with the Denaria token and potentially other assets.
Proposal 3: Special Reward for Vegeta3
Nice try
I do think that high-quality contributions on the governance forum should be incentivized, so keep it up. There could also be room for retroactive rewards in the future.
1 I don’t understand the correlation between the 2 things. they are 2 different things.
Right now, I can use Denaria without buying the token, and that’s not good. We want everyone to buy the token.
2 Maybe my proposal is too aggressive, but if we analyze the market, most successful projects are aggressively managing the fees they generate.
If we don’t incentivize users, no one will want to buy the token.
So, how would you like to incentivize with the Denaria token? Tell me about the numbers and let’s try to come up with a plan.
In my opinion, the most important proposition is number 1, because if you implement proposition number 2, users are incentivized to use the denaria protocol, but with proposition 1, users are incentivized to buy the token. And the most important thing, in my opinion, is to have strong demand for the token.
Using the product does not need to be gated by token holding, product usage is our core goal. Once we achieve strong product usage, we can incentivize token holding through some form of revenue-sharing model.
Without product usage, the token itself has little meaning. There are already many Perp DEXs that do not require token holding to access the product, so I would not make that a condition.
By analyzing the market, we can see that with sufficient protocol fees and a well-designed revenue-sharing model, the token could achieve sustainable positive growth.
The “Fee Incentive for Trading with Denaria Token” is harder to implement at the moment, mainly because part of the fees goes directly to LPs. Redirecting that flow could slow down liquidity deployment into the protocol, which would negatively impact pricing efficiency and TVL growth.
This is a great question because it gives me the opportunity to explain my view on the topic.
I believe Denaria should position itself primarily as a mobile-first Perpetual trading platform.
Today, I see a clear market opportunity. According to several reports I’ve read, the adoption of mobile finance and trading applications continues to grow rapidly.
Shift Markets, Why Modern Trading Platforms Have Gone Mobile First
Storyblok, Mobile App Trends 2024 (based on Future Market Insights)
At the same time, most major Perpetual trading platforms offer mobile apps that are essentially adapted desktop experiences. They often present too much information and complexity, which can be overwhelming for entry-level users.
This creates an opportunity for Denaria to target:
Users who have never traded Perpetuals before
Existing traders who primarily want to monitor and manage positions from mobile
Traders who find current Perp apps cluttered and difficult to use
So my answer to the question is simple:
You should trade on Denaria because it offers a mobile-optimized, intuitive, self-custodial trading experience.
Over the past few months, feedback from our users has consistently validated the value of this approach.
Once we validate this positioning, there are additional reasons to trade on Denaria that may be less immediately visible but are equally important:
What I’ve seen over many years in crypto is that 90% of users are only interested in token prices… and that’s perfectly normal. So my view is that, if in the long run Denaria fails to increase its average price, users will move to other protocols, perhaps less user-friendly than Denaria, but with the visual appeal of seeing a chart that has been trending upward over the years.
That’s why I’m saying that we should find a way to keep these users on Denaria instead of having them move elsewhere.
