Decentralization: Token + L3

$EDGE Token

Alongside our strong product value proposition, we will further catalyze growth by leveraging our token. We will model this token after learnings from successful token projects like $BNB, $JUP ($13B FDV), and $AEVO ($3B FDV). We think the token is a great tool to onboard users onto the platform and build a moat.

What are the details of the Definitive token?

Token Ticker	EDGE
Description	The native cryptographically-secure fungible protocol token of Definitive.

How the token will be used?

Area	Description
Pre-Launch Initiatives	We will use the token to create incentives for users to onboard, trade, and yield on the platform.

This includes programs to incentivize referral and trading volume, reward weekly contests & leaderboards, and a host of other product marketing and growth initiatives | | Token Utility | Token utility will be tied to the growth of the platform.

Tokens can be staked with lockup for platform benefits and scheduled remissions.

Staking tiers unlock premium features such as dedicated vaults, sniper bots, reserved allocation in advanced strategies, earliest access to new features and more.

We will keep a close eye on the changing regulatory landscape to further refine utility. | | Governance | Definitive will adopt a hybrid governance model focused on formulating and voting on Definitive Governance Proposals (DGP) via Snapshot. | | Security | $EDGE token will be used to secure the Definitive L3 and benefit from sequencer fees. | | Ecosystem Grants | Definitive succeeds if we integrate more protocols, and in-turn, wallets/aggregators integrate Definitive API for their customers.

We will use the token to

Incentivize wallets/aggregators to integrate the Definitive API.
Incentivize protocol developers to integrate protocols into Definitive’s Infrastructure, thus scaling the protocol and chain addition process. | | Launch Timeline | Q3 24’ |

How will $EDGE accrue value?

EDGE Buybacks - Revenue earned will be deployed to buyback EDGE tokens for redistribution to EDGE stakers. Revenue is not limited to trading fees but also rake on yield earned for resting assets in the trading vaults as well as our yield products.
EDGE Staking - Multiple simultaneous benefits for staking.
- Rev Share - Users can stake EDGE for revenue-scale rewards week-to-week. Minimum period for staking is 7d. An unlock period of 7d will also be implemented. Users can also stake EDGE for longer durations for boosted governance power.
- Fee Reduction - Users who stake EDGE week-to-week trade with reduced fees up to a a computed trading volume based on staked proportion. (Exact dynamic/math TBD)
- Governance - Stakers of EDGE get weighted votes based on stake duration similar to veAERO and veCRV. Note that only governance voting power is duration-weighted and rev share is not. Governance will determine ecosystem expansion and integration priorities.
- L3 Sequencer Fees - Staked EDGE token will receive a share of the L3 sequencer fees as more products spin up natively on Definitive L3.
Downstream, Definitive anticipates introducing our own liquidity and exchange primitives (see HIP-2 from Hyperliquid for early inspiration). We really like the veAERO bribing and liquidity incentivization mechanics to help build participation in these primitives. In short, Definitive will have its own set of market making algos directing passive liquidity. Protocols who want deeper liquidity for their tokens will need EDGE governance power to direct incentives in the flywheel.

Definitive L3

Once the token is live, we will then shift gears to further decentralizing Definitive and launching an execution-focused L3 that is Base-aligned. The Edge L3 will be a high-performance decentralized execution platform, focused on spot, yield, and perpetual contracts. The execution engine will run on a custom EVM roll-up that settles to Base.

In short, this means users get to access the full gamut of multi-chain trading/yield all from one platform with Edge L3 as the entry-point.

Base Alignment Strategic Advantages