Yanush Ali | June 2 2020
Yanush Ali | June 2 2020
At the core of Orion Protocol is the ORN token. Orion has ensured deep utility of its native token across the entire protocol, integrating it into all main transactions to take the form of an internal currency or utility token. No product or feature can work without it: ORN is required for payments, staking, participation, the unlocking of advantageous network access with discounts on trading, oracle usage, and Protocol access.
Orion is committed to ensuring the sustainability of the ORN token. It’s supply-capped, meaning new tokens are never minted beyond the Token Generation Event, while efforts are in place to strategically and frequently remove tokens from circulating supply. Orion has worked to ensure longevity of the supply-capped ORN token through a number of methods:
Orion Terminal: Orion Terminal users receive a fee discount when paying with ORN, and earn terminal transaction fees by staking ORN tokens.
Decentralized Brokerage: Brokers must stake ORN tokens to be chosen to execute trades, while non-brokers stake ORN tokens to vote for their broker of choice.
Orion Enterprise: The token utility of each DeFi solution lies in the integral role the ORN token plays in the decentralized brokerage, with every transaction within each solution acting as a trade being carried out by a broker. Profit share from each transaction will be shared back to the respective brokers in the form of ORN tokens. Meanwhile, 100% of licensing fees generated from Orion Enterprise solutions will be used to buy ORN tokens off the market and remove them from supply.
This first phase of solutions paves the way for ambitious new products that continue building on the liquidity aggregator protocol, including a price oracle, lending platform and a high-margin DEX. The future token utility of each new DeFi solution lies in the integral role of ORN in the decentralized brokerage at the core of the protocol on which they are built.
Due to the inherent inflationary nature of existing consensus mechanisms, miner/staker benefits are typically minted as new tokens - hurting the underlying asset over time. Built on a network of brokers and stakers, Delegated Proof of Broker (DPoB) is the latest staking model that underpins Orion's ecosystem. Unlike other traditionally inflationary mechanisms, Orion never mints tokens for rewards; DPoB stakers receive rewards generated via Orion’s various revenue streams, preserving the necessity of the underlying ORN token.
This internal staking program will be available upon Mainnet launch in Q4. In the meantime, we have a multi-exchange pre-staking initiative with a 39% APR to provide immediate staking incentives: 50% of circulating ORN has already been staked.
Orion is actively removing tokens from circulation through a number of methods:
Staking: DPoB encourages all parties to stake and remove their ORN tokens from the circulating supply in return for maximum results. Rewards generated are then compounded into their stake, further reducing circulating supply.
Licensing fees: 100% of licensing fees generated from our stack of DeFi solutions will be used to buy ORN tokens off the market and remove them from circulation.
Refunds: Every ORN token that is refunded (via the DYCO token sale) will be destroyed, removing up to 100% of circulating supply. Only purchased tokens will be in circulation until the 16th month.
Similar to tokens integrated with platforms like Binance, ORN will give holders a range of benefits, plus additional functionality that will add further value to users and incentivize them to hold. For example, Orion Terminal users can gain a fee discount when paying with the ORN token. Meanwhile, Brokers and Non-Broker Stakers are able to earn additional transaction fees by staking ORN - with chances increasing along with the size of their stake.
In the current standard of token sales, even if a team is creating a good product, they are not held accountable for creating a good token. By giving token sale participants the ability to refund their tokens, projects have no choice but to make a viable token. By letting people give back 100% of their tokens, which are subsequently burned, it becomes possible to push a project to complete irrelevance, if its team fails.
The refunds also create a price floor that provides organic liquidity and volume, creating a healthy secondary market. Buyers who come to doubt the long-term viability of a token and are unable to find a good price in the secondary market, can not only receive liquidity from the team itself through a refund, but their tokens are also burned. Eventually, good projects are left with a firm base of holders.
Orion will be the first token sale to implement a DYCO: a token sale that succeeds, or the token buyers get their money back. A DYCO is the first early stage token sale opportunity that creates a price floor in the secondary market, offering down-side protection to participants without limiting their upside. It also holds the token issuer liable: 80% of the funds raised in a DYCO are set aside to buy-back all holders’ tokens, if they are unhappy with their token purchase. Only purchased tokens will be in circulation until the 16th month, while every ORN token that is refunded will be destroyed - removing up to 100% of circulating supply.