Fuelling W-Swap Incentives
This page details the tokenomics of WAVE, the native reward and incentive token designed to drive liquidity, user engagement, and ecosystem growth for the W-Swap decentralized exchange (DEX) on the W-Chain blockchain
Token Overview
- Token Name: WAVE
- Token Symbol: $WAVE
- Blockchain: W Chain (Layer 1)
- Token Standard: WRC-20 (W Chain equivalent of ERC-20)
- Purpose: To incentivize liquidity provision on W-Swap, reward long-term commitment through staking, and serve as a future governance token, creating a robust tokenomic flywheel for the W Chain ecosystem.
Total Supply & Emission Structure
Annual Reward Budget
$400,000 equivalent in WAVE tokens per year (based on a target price of $0.10 per WAVE).
Base Annual Emission (for Stakers)
4,000,000 WAVE tokens per year, specifically
allocated to LP Stakers and WAVE/WCO Stakers.
Treasury Emission
An additional 10% of the base annual emission (i.e., 400,000 WAVE) is automatically minted directly to the protocol treasury on Pool Sync,
outside of the normal emission dedicated to stakers.
Total Annual WAVE Minted
4,000,000 WAVE (for stakers) + 400,000 WAVE (for treasury) =
4,400,000 WAVE per year
Supply Model
Continuously emitted, with the emission rate designed to align with the annual budget. The total circulating supply will grow over time, offset by potential burning mechanisms.
Emission Allocation Strategy (Per Block)
Based on a 2-second block time (15,768,000 blocks per year):
Total Base Emission (for LP and WAVE/WCO Stakers) per block: ≈ 0.254
WAVE/block (4,000,000 WAVE / 15,768,000 blocks)
| Category | % Allocation (of 4M base) | WAVE/Block Emissions | Annual WAVE Emissions (Approx.) |
|---|---|---|---|
| LP Stakers | 40% | ≈ 0.102 WAVE | 1,600,000 WAVE |
| WAVE/WCO Stakers | 60% | ≈ 0.152 WAVE | 2,400,000 WAVE |
| TOTAL MINTED per Block | 100% | ≈ 0.254 WAVE | 4,000,000 WAVE |
Utility of WAVE
WAVE tokens are designed with multi-faceted utility to drive engagement and value within the W-Swap and broader W-Chain ecosystem:
Liquidity Mining Rewards
WAVE is primarily earned by users who stake their WLP (WSWAP Liquidity Provider) tokens, incentivizing them to provide crucial liquidity to W-Swap trading pairs.
Staking Rewards
Users can stake their WAVE tokens in a single-asset staking pool to earn additional WAVE, promoting long-term holding and reducing selling pressure. This aims for an attractive APY (e.g., ~120% target, dynamic based on TVL).
Trading Pair
WAVE will be tradable against WCO (the native W-Chain token) and other assets on W-Swap, increasing trading volume and utility
Future Governance
As the ecosystem matures, WAVE holders will gain decentralized autonomous organization (DAO) governance rights, allowing them to vote on key protocol parameters, emission adjustments, treasury usage, and new feature implementations
Ecosystem Integration
Potential for WAVE to be used as collateral in future lending protocols (e.g., L-WAVE), or integrated into other dApps on W-Chain.
Value Accrual Mechanisms
The value of WAVE is designed to accrue through several interconnected mechanisms:
Demand from Liquidity Providers
LPs are incentivized to earn WAVE, creating constant demand.
Staking Demand
A high target APY for WAVE staking encourages users to hold and stake their tokens, reducing circulating supply.
Trading Volume
Increased trading activity on W-Swap, particularly in WAVE pairs, contributes to its perceived value and liquidity.
Treasury Accumulation
The protocol treasury accumulates 10% of all WAVE emissions, which can be used to lock WCO liquidity or for strategic investments, strengthening the ecosystem's backbone.
Governance Influence
The power to shape the future of W-Swap and the broader W-Chain ecosystem provides intrinsic value to WAVE
Ecosystem Growth
As W-Chain and W-Swap grow in adoption and TVL, the utility and demand for WAVE are expected to rise.
Emission Schedule & Inflation
Continuous Emission
WAVE tokens are continuously minted per block. The base
emission for stakers is approximately 0.254 WAVE/block.
Targeted Annual Emission
The emission schedule is designed to distribute
4,000,000 WAVE per year to stakers, plus 400,000 WAVE per year to the treasury, totaling 4,400,000 WAVE minted annually
Adjustable Emissions
In the future, the emission rate can be adjusted through DAO governance to respond to market conditions, TVL targets, and ecosystem needs,allowing for a more dynamic and sustainable tokenomics model
Deflationary Mechanisms (Future Possibilities)
To counter potential inflation from continuous emissions and create long-term scarcity,
future deflationary mechanisms could be introduced via DAO governance:
Buyback and Burn
A portion of W-Swap trading fees or protocol revenue could be used to buy back WAVE tokens from the market and permanently remove them from circulation.
Fee Burns
A small percentage of transaction fees (e.g., from swaps or bridge transfers involving WAVE) could be directly burned
Exclusive Access Burns
Requiring a small amount of WAVE to be burned for access to premium features or exclusive NFTs.
Strategic Importance for W Chain and WCO
The WAVE tokenomics model is strategically designed to:
Deepen WCO Liquidity
By incentivizing WAVE/WCO liquidity pools and through treasury operations locking WCO, WAVE directly supports the W Chain native token.
Drive On-Chain Activity
Staking, rebalancing, and swapping of WAVE generate continuous transactions on W Chain.
Foster Community Loyalty
The gamified yield model and transparent governance build a strong, committed user base for the W Chain ecosystem