What is the tokenomics of Osmosis?
The tokenomics of Osmosis is based on the Osmosis Network Token (OST).
OST is an ERC-20 token that serves as the primary utility token for the Osmosis Network. It is used to incentivize users to participate in the network, reward users for providing liquidity, and pay transaction fees. OST has a total supply of 1 billion tokens, with 80% of these tokens allocated to the public sale and 20% allocated to the team and early investors.
The public sale was conducted in two phases: a private sale and a public sale. The private sale was conducted in December 2020 and raised $3 million USD from strategic investors. The public sale was conducted in March 2021 and raised an additional $7 million USD from retail investors.
The OST token has several use cases within the Osmosis Network. It can be used to pay transaction fees, incentivize users to provide liquidity, reward users for staking their tokens, and provide access to premium features on the platform. Additionally, it can be used as collateral for margin trading on decentralized exchanges (DEXs).
In addition to its utility within the network, OST also serves as a governance token that allows holders to vote on protocol upgrades and changes. This helps ensure that the network remains decentralized and secure over time.