Alpha Tokenomics Makes Value Accrual Integral to the Usage of Core Protocols; 75% of Fees to Stakers
In the first six months, Alpha Finance accumulated $1.7 million in fees. Stakers will be paid in Alpha tokens, up 90% YTD, and get to “unlock” unique features.
A $533 million market cap cryptocurrency, Alpha has surged a massive 890% this year, so far, as it trades at $2.11.
The cryptocurrency market, however, is expecting more uptrend from the token as the DeFi lending protocol releases new ALPHA tokenomics and gears up for the launch of staking in the coming days.
Alpha token holders will be able to stake their tokens to earn fees from the whole Alpha ecosystem, including Alpha Homora (vEthereum), Alpha Homora (vBSC), Alpha Homora (v2), and AlphaX, announces the team.
Already, Alpha has over $250 million in TVL (total value locked) on Binance Smart Chain in just a matter of a week. $700 million are meanwhile the TVL on Ethereum, which hit $1.2 billion in mid-Feb.
A multi-chain future is what Alpha and other DeFi projects are aiming for.
Staking will allow the user to “unlock” unique features on the Alpha products “one of the very first times that tokenomics is directly integrated with the usage of the core underlying protocols.”
The more you stake, the higher Alpha tier traders will be, which further unlocks more features.
This makes value accrual not just limited to fees collection but integral to the usage of core Alpha protocols, which Delphi Ventures, long on ALPHA, called “interesting.”
“To date, token holders have been disconnected from the protocol itself, until now,” said Tom Shaughnessy of Delphi Digital. “AlphaX is set to launch composable, perpetual tokens that abstract away the concept of a funding rate. Perps are a huge potential fee market,” he added.
Launched in October 2020, in the first six months, the protocol accumulated $1.7 million fees — the accrued fees are collected by Alpha taking 10% of the borrowing interest rate on its protocols.
Today, the team shared that 75% of the total fees accrued will be distributed to all Alpha stakers in the form of Alpha tokens in proportion to the amount of ALPHA personally staked vs. total ALPHA staked. 5% of current fees is set aside for long-term developer grants, and 20% of fees accrued repay the outstanding debt owed to the Cream protocol as a result of an exploit in Feb.
“Staked ALPHA tokens will serve a critical role in helping to ensure the entire Alpha ecosystem in case additional insurance is needed.”