On September 30, 2020, Tokenlon announced that it would launch a new market maker program. The program is designed to offer Tokenlon’s users superior liquidity by attracting professional market makers to the platform.
The Tokenlon decentralized exchange is powered by the Ox protocol. It uses the Request for Quote (RFQ) architecture to bring liquidity to the masses. Incentive programs on most other decentralized exchanges only target liquidity providers. However, the new program will ensure all members are incentivized.
How the Program Will Work
Referrers, Traders, and Market Makers will all receive LON tokens when they contribute to the platform. In the future, the LON tokens will allow them to take part in community governance. The pilot community governance started on October 28, 2020, with a pair of proposals launched by the team.
The new market maker program is the second stage in the LON incentive plan. In the first phase, over 28,000 users began trading on Tokenlon. Today, only the Uniswap protocol has more traders. The cumulative volume on Tokenlon is over $2 billion. By trading volume over the past two weeks, Tokenlon is amongst the top three decentralized exchanges.
How LON Tokens Would Be Used As Governance Tokens
At its core, the governance token is like a loyalty program that also acts as company shares. Users are credited with the tokens for contributing to the platform. Besides that, they can vote on the direction the protocol takes. While the goal of governance tokens is to decentralize a DEX further, they often end up being used as speculative trading instruments. In some cases, their value has grown by over a thousand percent a few days after launch.
About The LON Tokens Second Phase Launch
The LON tokens are Tokenlon Network Tokens. There are 200 million LON tokens in total. Thus far, 4 million LON tokens have been allocated with around 65.73 LON tokens per address. Tokenlon plans to launch the second phase of the LON incentive plan on October 31, 2020, at 0:00 UTC, around 8 AM (Beijing time).
In the second phase launch, 10 million LON will be launched over 50 days. Users will be able to continue mining LON via trading and referrals. For providing liquidity, market makers will receive LON tokens in the second phase. The number of LON tokens received will depend on the particular trading pairs as well as the trading volumes.
An Overview Of The Current Market
The DEX space has been growing exponentially since June 2020. In September, trading volume on Uniswap grew dramatically to over $15.4 billion. Closely following is Tokenlon, which is a fast and secure DEX that is powered by the Ox protocol using the Request For Quote (RFQ) architecture. Trading volumes on Tokenlon recently surpassed $2 billion. That figure makes it amongst the top three DEXs.
What the Leadership Said
While commenting on the issues, Lucas Huang, the Head of Growth at Tokenlon said:
“Introducing better liquidity will allow Tokenlon to bring its secure and convenient decentralized exchange experience to more users around the world by providing them with the most competitive quotation and depth in the industry.”
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