Token
DRV: The Foundation of Derive
Derive is a composable ecosystem of derivatives powered by the DRV token. This blog explains the governance mechanisms, staking incentives, and utility features designed to foster sustainable growth and engagement.
Token Overview
- Ticker: DRV
- Total Supply: 1,000,000,000
- Migration Ratio: 1:1 for LYRA/stkLYRA holders
- Chain: Ethereum Mainnet and Derive L2
No new tokens will be minted.
Utility
1. Staking for Governance (stDRV
- Stake DRV into stDRV to participate in governance
- Staking Features:
- 28-day unlock period or instant unlock with a 20% penalty.
- Non-transferrable to secure governance integrity.
- Voting power can be delegated.
Staking Rewards:
- Earn weekly rewards funded by DAO emissions.
- 6 months post-TGE, emissions decrease and transition to buyback-funded rewards.
2. Governance Framework
Governance will operate entirely on Derive L2, offering:
- Proposal Creation Wizard: Streamlined tools for drafting proposals.
- Delegation Flexibility: Re-delegation and partial delegation for institutional participants.
- Low-Cost Voting: Leveraging Derive L2 for minimal fees.
3. Protocol Usage Incentives
DRV incentivizes trading, liquidity provision, and ecosystem engagement:
- Weekly Emission Pool: Up to 2,500,000 DRV allocated for trading and liquidity programs.
- Unused Rewards: Returned to the DAO treasury.
4. Sustainable Buybacks
- 25% of protocol revenue funds weekly DRV buybacks.
- Ensures long-term demand and treasury growth.
Emissions Schedule
- Initial Weekly Rewards: Up to 1,150,000 DRV for staking.
- Post-6 Months: Drops to a maximum of 600,000 DRV and transitions to buyback funding.
At a Glance
Feature | Details |
---|---|
Total Supply | 1,000,000,000 (fixed) |
Migration Ratio | 1:1 from LYRA/stkLYRA |
Staking Token | stDRV (non-transferrable, 28-day unlock, or 20% instant unlock penalty) |
Governance | Delegated voting, proposal wizard, low-cost transactions on Derive L2 |
Staking Rewards | Weekly emissions transitioning to buyback funding after 6 months |
Protocol Incentives | Up to 2,500,000 DRV weekly for trading and liquidity programs |
Revenue Buybacks | 25% of protocol revenue allocated for DRV buybacks |
Pre-Stake Bonus | 2.5% boost for users committing DRV during the pre-launch window |
DRV combines robust governance, staking incentives, and sustainable emissions to fuel growth. This tokenomics framework prioritizes decentralization, security, and long-term alignment for tokenholders and ecosystem participants.
Summary of Derive Token
Core Components
- Derive Chain: An Ethereum rollup leveraging the OP Stack for high performance and security.
- Derive Protocol: A generalised risk engine supporting advanced portfolio margining.
- Derive Exchange: A self-custodial, high-performance exchange built for both GUI and API users.
Governance Evolution
- Fully autonomous governance where staked tokenholders manage the DAO and protocol parameters.
- Enables direct token holder control, ensuring decentralization and transparency.
Sustainability Model
- DAO earns revenue through protocol fees, rollup fees, and liquidation fees.
- Fees support the ecosystem and provide funding for staking rewards and buybacks.
Adoption Strategy
- Incentive structures attract traders, liquidity providers, and integrators to the platform.
- Flexible rewards and growth experiments align stakeholder interests with long-term protocol success.
Stay tuned for further updates from Derive in 2025.
Updated 4 days ago