EGG Token Utility
The EGG token is used to govern the Nest Egg Network by determining the use of network parameters and helping to determine the direction in which the network moves. Voting power is determined by a combination of the number of EGG tokens and the duration for which they are locked. A minimum voting power is required to make a governance proposal.
Following the first two years of inflation, locking up your EGG tokens will be yield-generative, as it entitles you to a share of EGG redistribution rewards.
Examples of proposals that could be determined by a EGG holder vote include:
Incentivize managers
Performance Mining: the purpose of the performance mining program is to attract users during the critical start-up phase of the project and serve as an important tool to align stakeholder incentives. It is designed to help attract and retain users while promoting long-term growth by supporting the efficient allocation of investor capital. For example, asset managers holding EGG in their fund will receive additional performance mining rewards based on their share of EGG relative to total assets.
Performance Fees: Nest Egg fund managers may earn a performance fee based on their trading performance. The performance fee is distributed in fund tokens, which means that successful managers will increase the share of their own pool over time.
Incentivize investors
Staking Rewards: In the initial phase, EGG staking rewards will be provided from the ecosystem's token reserve and will serve a number of purposes (e.g.: Rewarding users, Encouraging users to participate in network governance, Aligning incentives for stakers, users and developers).
Discounts on Network Fees: Investors who stake EGG will receive discounts on network fees on a tiered basis.
Facilitate decentralised governance:
Voting on improvement proposals: After the launch of the mainnet, the future development of the network will be driven by proposals voted on by the community.
Voting on changes to the ranking algorithm: The ranking algorithm determines how performance mining rewards are distributed. This algorithm is used to determine which funds (or groups of funds) receive the issuance of new performance mining rewards.
Determining the Staking Reward Ratio: the network buys and distributes a certain minimum number of EGG tokens to EGG Stakers, which is determined by the Staking Reward Ratio. Initially this is set at 20%, but can be changed by voting. See "Staking Reward Ratio" in "EGG staking".
New assets added to the network: The Nest Egg Network will launch with an initial core group of investable assets on TraderJoe and other Avalanche-friendly DEX (ex: Pangolin, EDMX, etc.). This group will be selected based on liquidity, availability and validity period. Future additional assets may be proposed and voted on by EGG token holders.
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