Tokens Structure

The tokenomics model is centered on the dynamic interplay between $NIT and Reward Tokens (xNIT, Nitro point), creating an infinite reward cycle that ensures $NIT’s value stability and supports long-term sustainability.

Tokens

$NIT:

$NIT serves as the native token of the protocol. At the DAO’s inception, $NIT holders will govern essential parameters, including:

• Deploying new trading pairs using the token reserve balance.

• Allocating DAO grants to support ecosystem expansion.

• Adjusting market parameters or disabling borrowing for specific pairs.

Reward Tokens

• Nitro Points are non-transferable reward tokens designed to incentivize platform engagement. They are earned through interactions such as liquidity provisioning, borrowing, and blacklisting of expired debts.

• xNIT are earned through the conversion Nitro Points, and they can be converted into $NIT via the rewards contract. For more details, [click here to learn more].

Fee Distribution

• Liquidity Providers (75%)

  • 75% of transaction fees are directed to liquidity providers, rewarding them for swaps, borrowing, and other interactions.

• Treasury Fee Reserve (25%)

  • 25% of transaction fees are reserved for:

    • Platform development and expansion.

    • $NIT buybacks, reducing token supply and enhancing scarcity.

    • Increasing xNIT backing in the reward contract to sustain long-term rewards.