Token Phases

Future of Swych token!

Swych token aims to evolve its tokenomics after the initial distribution phase. This distribution phase will first reach Phase Two once all elements needed are met.

Phase 1: Distribution Phase (Completed)

The first phase is distributing and getting the token in the holder's hands. This phase will have an inflationary element, with staking focusing on Swych token growth. This is the time to accumulate Swych tokens, as within the second phase of Swych, there will not be any minting or inflationary elements. Acquiring or building up tokens within the distribution phase will give you a headstart compared to new investors entering phase two.

Phase one will be the only time investors can mint new tokens using the staking element. There are also mechanics to help control large sales and inflation issues, such as a limitation to sales and consistent Buy-Back Burns.

Inflationary token

Swych will initially be an inflationary token, meaning more tokens will be minted during the distribution phase compared to the growing phase. This is to get more tokens in circulation and in the hands of investors to be used throughout the ecosystem.

Taxes and fees

During the Swych token's distribution phase, taxes will be put on sales and transfers. This is to gather funds for the continued development of Swych, marketing, Buy Back Burns, and staff payments and to create a self-sustainable protocol-owned asset. These fees will be sent to the Treasury.

Limited sell pressure

To ensure that the distribution phase leads to accumulation and prevents large negative sell pressure, we have implemented the ATB. Doing so allows investors to sell up to 20% of their tokens every 10 days. This allows us to reduce the taxes on the token while also ensuring there are anti-dump measures initially.

No max supply

Since the token will be inflationary to distribute more tokens among the ecosystem and investors, there will initially be no set max supply. Doing so allows investors to get more tokens before a cap is in place and have tokens spread throughout the ecosystem.

500% fixed APY on staking rewards paid in Swych tokens

Investors can stake their Swych tokens for a fixed APY of 500%. The rewards will be in Swych tokens and auto-compound within the distribution phase. Staked tokens can be withdrawn at any time for a small exit fee.

Phase 1.5: Transition Phase (Current)

Added in Feb 2024

ATB Removal

ATB has been removed, and users can freely sell any tokens. There are no longer any transfer fees, sell limitations or locking periods.

100% fixed APY on staking rewards paid in Swych tokens

Investors can stake their Swych tokens for a fixed APY of 100%. The rewards will be in Swych tokens and auto-compound within the distribution phase. Staked tokens can be withdrawn at any time for a small exit fee.

Similar Mechanics as Phase 1

The mechanics of Phase 1.5 are similar to those of Phase 1.0. This phase is meant to be a transition phase until the growing phase can be reached. There is still inflation, no max supply, and sell tax on the token.

Phase 2: Growing phase (Future)

Phase two will focus on deflation, growth, and bringing real yield to the ecosystem. With phase two, the goal is to create a token that is easily accessible and understandable. This means removing sales taxes, transfer fees, and withdrawal limitations. Doing these things allows us to approach centralized exchanges, build exciting new partnerships, and create new utilities that hugely benefit any holders. Additionally, phase two will bring more value to the token due to a set max supply and burns to reduce that supply further. Without the pressure of inflation elements and the introduction of scarcity mechanics, your tokens will begin to accumulate more value naturally. This means that the Swych token increases value for holders and allows us to create exciting new advancements within the ecosystem. With the benefits of going to a token that removes limitations, taxes, and inflation, we can offer multiple sources of revenue and growth opportunities.

Deflationary token

Swych will transition to a deflationary method, with burns done to reduce the overall supply and create more value for each token. Features and utilities within the ecosystem will also fund Buy Back Burns to create positive price potential further.

No taxes

Once in the growing phase, there will no longer be any taxes on sales or transfers. Once transitioning to this phase, development, marketing, and staff payments will be sufficed from fees and yield generated within the ecosystem.

No limitation on sales

With the start of phase two, the Available Trading Balance (ATB) system will be retired, and users can freely sell or transfer coins without limitations. Since the token will no longer be inflationary, the worry about large sales becomes less critical.

Fixed supply

After the distribution phase and seeing how many tokens are in circulation, a fixed supply will be calculated and set for the token. This will ensure scarcity and allow us to bring more value to Swych.

Staking Real Yield

Staking will evolve to a "Real Yield" method, meaning rewards will be paid in tokens such as BUSD/ETH/BTC/etc. These rewards will come from the Swych ecosystem and depend on market conditions, trading volume, and other factors. A locking period and a small exit fee may apply.

Cross-chain opportunity

With limitations on sales and taxes removed, we can look towards opening the Swych token to different chains. Along with this, we can also venture into the DEX going cross-chain (no eta).

Potential CEX listing

Since there will be no sales tax or sale/transfer limitations, the Swych token can be listed on centralized exchanges such as Binance, Crypto.com, or Coinbase. The goal is to make the Swych token easily available to many users worldwide.

Phase plans are subject to change depending on current or foreseeable market conditions. Ensure you are within social channels or check the whitepaper for the most up-to-date info.