Articles, Product

Understanding the ALGM Token: Backbone of the Algem Ecosystem

Introduction

The ALGM token is the reward for participating in our Liquid Crowdloan. Therefore, it is crucial to demonstrate to our community how the tokenomics of ALGM are structured and how it operates across all our products. This article will provide an overview of the ALGM token, its distribution, its role in our products and the results of our tokenomics audit.

Distribution

The distribution of ALGM tokens is designed to support the long-term growth and sustainability of the ecosystem with a total supply of: 100,000,000 ALGM

A more detailed allocation will be revealed later.

How ALGM is integrated into our products

We firmly believe that a token should play a vital role within an application; otherwise, it risks becoming a useless token for occasional voting. That’s why we’ve meticulously designed the mechanics of using ALGM. This way, the token is integrated into all our products since it plays a crucial role of cash flowing within our system.

1. Liquid Farming:

  • ALGM usage: ALGM tokens are distributed as additional farming rewards, which should then be re-staked in the ALGM staking pool to continue earning farming rewards. If not re-staked, the user will gradually lose a portion plus eventually all of their future farming rewards.

2. ALGM Staking:

  • ALGM usage: Users stake and lock ALGM tokens to receive a share of the platform’s revenue, which includes ASTR and partner dApp governance tokens. Stakers earn veALGM tokens, allowing them to participate in governance voting and influence key decisions within the ecosystem.

3. Liquid Staking V2:

  • ALGM usage: Users can vote on which dApps their staked ASTR should support using veALGM tokens, obtained through ALGM staking.

Check our whitepaper for more detailed  information about the ALGM token usage.

Tokenomics Audit

To ensure the stability and sustainability of the ALGM token, we conducted a comprehensive tokenomics audit. Key findings from the audit include:

  • Robust Structure: The audit confirmed that Algem’s tokenomics are robust, with no Ponzi-like elements or self-feeding loops that could cause instability. There are no problems with the internal design of the system, or the token allocation and distribution strategy
  • Strong Utilities: there are several mechanics, such as Liquid Farming, the ALGM staking pool and ALGM’s stake for revenue, which generate constant demand for ALGM tokens.
  • Balanced Distribution: The distribution strategy is well-balanced, ensuring that incentives, community rewards, and allocations for the team and investors are aligned for long-term growth.
  • Risk Mitigation: Strategies are implemented to mitigate risks, particularly those related to external market conditions and the dependency on Astar’s ecosystem.

For more detailed information, please refer to our tokenomics audit.

Conclusion

The ALGM token is a strong asset with a well-designed tokenomics structure that provides significant benefits to its holders. By participating in the Liquid Crowdloan and utilizing ALGM across our products, users can maximize their returns and contribute to the growth and success of the Algem ecosystem.

Join the Whitelist Now!

By joining the whitelist for the Liquid Crowdloan, you can secure early access and exclusive benefits, positioning yourself as a foundational member of the Algem community. Don’t miss out on this opportunity to be a part of our growing ecosystem.

Apply for the whitelist → forms.gle/m1K9LK2LwCMCFstb8 

Stay tuned for more updates and make sure to secure your spot on the whitelist to take full advantage of these exciting opportunities!


About Algem

Algem is a decentralized application built on the Astar Network and offers two main features: liquid staking and liquid farming. As their names suggest, these two options let ASTR holders keep their assets liquid while putting them to work. Also, the liquid staking and farming solutions let users use Algem’s liquid nASTR tokens across Astar’s Defi ecosystem to earn staking rewards and make more money. In doing so, Algem supports other Defi protocols by providing liquidity and creating a sustainable and cooperative ecosystem on the Astar Network and Polkadot.

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