Elixir Introduces Airdrop Eligibility Verification Tool and Reveals ELX Token Economics

A decentralized network focused on improving liquidity for order book platforms, Elixir has announced the launch of its homegrown ELX token along with a verification tool for the upcoming airdrop. This feature enables users, community members, and selected DeFi participants to check their allocated tokens.

The ELX token, built on the ERC-20 standard, is pivotal in the Elixir ecosystem as it facilitates governance and helps secure network consensus. Several traditional financial institutions managing vast sums in assets are already operating validators on this network, boosting its credibility.

A substantial 41% of the total ELX supply is set aside for the community, guaranteeing that those holding tokens have a say in the network's evolution and direction. The allocation plan includes an 8% chunk for an initial airdrop, 21% for subsequent airdrops and liquidity provider incentives, and 12% aimed at securing the network through rewards given to stakeholders who participate in staking and delegation. Tokens locked in the system won’t be eligible for staking.

Other distributions account for 22% reserved for the DAO Foundation, 3% for liquidity, 15% for investors, and 19% for essential contributors.

The unlocking schedule for tokens varies depending on their category: the first airdrop allocation becomes available when the Token Generation Event (TGE) occurs, with half of the future airdrop allocation released after six months and the rest after a year. Incentives for liquidity providers are unlocked gradually over four years, while rewards for validators will be released over two decades in a decreasing logarithmic manner. The DAO Foundation will see 25% of its allocation unlocked at TGE, followed by a year of inactivity and then a four-year linear release. Investors have a one-year lock followed by a linear vesting period of two years. The liquidity portion is fully accessible at TGE, while core contributors face a year-long lock and then three years of linear distribution.

The Initial ELX Airdrop

More than 40% of the ELX tokens are dedicated to the community, while 22% will support the DAO Foundation. A noteworthy fraction of the airdrop has been allocated to holders of Apothecary potions, with the initial structure defined by how many tokens were held. For example, Apothecary token holders received 7% of the total supply, with community contributors getting 0.40%, Elixir holders of Electric Bazaar non-fungible tokens (NFTs) were allocated 0.10%, and validators earned 0.25% for early participation in the testnet, while power users of DeFi stablecoins also got 0.25%.

The distribution model for Apothecary tokens primarily followed a linear pattern, though there were slight decreases in return rates as the allocated amounts increased. Specifically, S3 potion holders received 2.75%, S2 holders got 3.00%, and S1 holders were allocated 1.25%. The first 30,000 S3 potions were distributed in a linear manner, while any additional allocations adjusted with a diminished return rate of x^(1/1.4). The first 10,000 S2 potions were also shared linearly, but any further distributions changed at the x^(1/1.3) rate. The S1 potion allocations remained entirely linear.

Certain community groups, such as Dewhales and Turtle Club members, obtained additional allocation boosts, receiving a 20% increase rather than the standard 10% referral benefit. Furthermore, a Total Value Locked (TVL) snapshot taken on February 28th provided a 30% enhancement to users who had funds in the protocol as of that date, though only those with at least 37.5 ELX were eligible for this distribution.

Users can check their eligibility by linking their EVM address on the platform. Those who qualify can manage their ELX allocations during the token launch. All recipients of the airdrop will initially have their tokens delegated to the ‘ElixirFoundation’ validator, but they can alter their delegation anytime via the platform’s “Validators” page. Withdrawals can be made right away, and after a three-month period, users gain the option to delegate their tokens to a different validator, including their own. By maintaining this delegation throughout the three-month network decentralization phase, users could see their initial ELX airdrop allocation double.