Value Protection Program (VPP)


The gDEX managing team will ensure that $GDEX token value is not only subjected to accrual, but also to a wider ‘Value Protection Program’

In order to minimize the negative impact related to typical ongoing P2E reward distributions (inflationary forces), and bear market and price volatility, gDEX team (and in future - gDAO) will be able to trigger the “Overburn Mechanics” lever and adjust the default 1:1 ratio of mint & burn equilibrium, and increase proportion of tokens burnt vs tokens minted.

This will be done by connecting standard value accrual approach with a consolidation policy and proactive treasury management done by the gDEX managing team (early stage) and eventually managed through the gDAO structure at a later development stage.

Such an approach is aimed at securing and facilitating the gDEX economy with long-term sustainability and positive market price growth of the $GDEX token. 

The value accrual model of $GDEX will be secured by: 

Overburn mechanics - overburn can be activated or deactivated directly on a smart contract level. If activated, it will force an equilibrium via a mint & burn function to burn more tokens than minted per every mint & burn operation. The overburn strength is set up centrally by the gDEX managing team (and later by the gDAO) depending on the current market situation and the quantity of tokens accumulated on reserves. By default, the overburn strength is set to 0% so as not to disrupt the equilibrium. 

These solutions ensure that being bullish on $GDEX and holding it long term will always result in benefiting from positive price impact obtained true value accrual and dynamic mint & burn.