Tokenomics

Dual Token Model in Sypher Finance

Sypher Finance employs a dual-token system to separate governance and utility functions, fostering a balanced ecosystem that aligns user incentives efficiently. The two tokens, SYP and xSYP, serve distinct roles within the platform.

SYP: The Utility Token

SYP is the native utility token within Sypher Finance, providing several key functionalities:

• Fee Reduction: Users can burn SYP to unlock premium account status, which reduces fees for perpetual trading, swaps, and other transactions. Premium accounts will also receive early access to new features, participate in exclusive events, and enjoy promotional perks, including bonus multipliers on liquidity provider (LP) rewards.

• Incentives: SYP is used to incentivize liquidity providers and participants in the ecosystem. It serves as a reward for staking, trading, and participating in governance initiatives.

• Conversion into Governance: Users can convert SYP into xSYP, the governance token, to gain decision-making power in Sypher DAO.

xSYP: The Governance Token

xSYP is the native governance token of Sypher Finance, empowering holders with the ability to influence the protocol’s key decisions:

• Voting Rights: xSYP holders participate in the governance of the platform through Sypher DAO, voting on essential protocol changes like adjusting fee structures, asset listings, and treasury management.

• DAO Engagement: By staking SYP to earn xSYP, users can expand their governance share in the DAO, further contributing to the direction and success of the protocol.

Fair Distribution of xSYP

In line with the ethos of fairness and decentralization, no xSYP tokens were pre-allocated to the team, community members, or early users. This ensures an equitable distribution of governance power.

SYP Allocation

Here’s the breakdown of SYP token allocation:

Allocation Category	Amount (SYP)	Percentage
DAO/Strategic Reserves	750,000,000	75%
Team /Advisors	125,000,000	12.5%
CEX Launchpool (Binance/OKX/Bitget)	75,000,000	7.5%
Airdrop	50,000,000	5%
Total Supply	1,000,000,000	100%

Through this SYP/xSYP dual-token model, Sypher Finance ensures that governance and utility are balanced, providing a fair and transparent system for all stakeholders.