The tokenomics of gROOT

This post aims to explain the tokenomics of gROOT, where it accrues its value from and what can you do with it.

What is gROOT?

gROOT is a token on the Binance Smart Chain (BSC) which is directly linked to the performance of DeFi in BSC by building up a treasury that holds yield farming positions in different protocols such as Pancake Swap, Auto Farm and Venus.

  • Have exposure to multiple liquidity positions instead of a single one (the treasuries can hold tens or hundreds of different liquidity positions which reduces the risk of a single token crashing down.
  • Getting more incentives by providing liquidity to gROOT pairs on top of the tokens the treasury is farming (such as CAKE, AUTO and XVS).

What is the gROOT treasury?

The gROOT treasury is the core part of gROOT.
It focuses on diversyfing its holdings and compounding several times per day.
When the price of gROOT is high relative to the treasury networth the treasury will sell some gROOT to expand its size.
When the price of gROOT is low relative to the treasury networth the treasury will buyback some gROOT to reduce the supply.

How does liquidity mining with gROOT work?

There are a total of 8,000 gROOT reserved ecosystem incentives, which include incentivizing gROOT pools, the first liquidity mining pool available is BNB/gROOT, with 150 gROOT allocated to it per month.

  • The swap fees of the liquidity pair you are in
  • The incentives that the treasury is collecting from farming other liquidity pairs
  • The swap fees that the treasury is collecting from other liquidity pairs

gROOT Initial Supply Distribution

gROOT is fairly launched, there was no presale or token sale for it and it has a team allocation of 0%.

Leveraging the power of top DeFi protocols with gTokens.

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