Utrin is the utility token that drives the entire Universal Trade Interface system. It functions as an inbuilt mechanism for users to pay platform fees as well as being a vehicle to distribute dividend rewards among Utrin holders.
Tokenomics Overview
Utrin is bringing a unique paid service model to the crypto market. Each month users pay a platform fee of $20 in Utrin. The fee paid unlocks DeFi trading features on the platform allowing users to trade on every major decentralised exchange across multiple chains. This revenue generating mechanism ensures that there is inherent value to the Utrin Token derived from its utility on the chain. As usage of the Utrin platform increases so does the value of the entire chain and each Utrin Token on it.
As you can see the Utrin Token does not only function to facilitate payment of platform fees. It is also integral to the rewards mechanism built into the Utrin chain:
- Users pay a $20 fee (in Utrin) to unlock the platforms features.
- These fees are held in a dividend pool until the end of each month.
- At the end of the month all fees in the dividend pool are split 60% to 40%.
- The 40% is immediately and irrecoverably burned.
- The remaining 60% of fees in the dividend pool are then further split to be distributed between the holders of Utrin and the development team.
- This 60% split between the holders and the team is 10% to 90%.
- The 10% is a dividend shared between all wallet addresses containing at least 200 Utrin. This does not include team or burn addresses.
- 90% goes to the team to finance further development.
The built in dividend means that it pays to hold Utrin. As well as benefiting from token value increases, investors also directly benefit from the platform’s success through this reward mechanism.
Benefits of the monthly burn
Every month 40% of the fees held in the dividend pool are burned. This creates some very positive effects for Utrin holders. The burn causes upward price pressure because a lower supply combined with a steady or increasing demand will result in a higher token value. Each Utrin you hold will increase in value with each burn. This is illustrated in the below example:
- Let’s say there was a total supply of 1,000,000 Utrin Tokens with 1 Utrin Token being worth $1, this means the total supply would be worth $1,000,000.
- In one month 50,000 of those tokens are used to pay platform fees.
- At the end of the month there would be 50,000 Utrin in the dividend pool as all fees go into the pool.
- 40% of this 50,000 would be burned. This equates to a burn of 20,000 Utrin.
- We started with 1,000,000 Utrin Tokens at a total value of $1,000,000 or $1 each. After the 20,000 Utrin burn there is still $1,000,000 of value but only 980,000 Utrin in the total supply.
- With a $1,000,000 total value but 980,000 tokens the price per token has increased 2% to $1.02 in only 1 month.
- Even with no change in demand this decrease in supply will cause the price of each Utrin Token to increase every month.
If you combine this supply pressure with demand pressure (more users on the platform) Utrin’s tokenomics come together to create massive upward price movement:
- More users equals more demand for Utrin to pay fees.
- Increased demand increases the value of the Utrin Token.
- More fees paid as demand increases equals more Utrin burned each month.
- This burn causes a supply decrease which further increases the value of the Utrin Token.
Utrin’s tokenomics are set up so that more demand also decreases the total supply. This creates a combined effect of both demand and supply functioning to increase the price of the Utrin token. This compounding upwards price pressure is just one more reason why it pays to hold Utrin.
Final Thoughts
Utrin has an extremely innovative tokenomics model that serves to reward it’s users with great trading functionality, its investors with value increases and its development team with the financial security to keep advancing the platform.
It is the only tokenomics model of its kind and it is one of the few projects that’s value is not speculative but rather derived entirely from revenue generated by it’s chain.
