NAVX Tokenomics

$NAVX Token is a vital component of the NAVI Protocol ecosystem. This document outlines $NAVX token’s distribution, emission schedule, utilities, and governance role.

Token Overview

Utility & Governance

The $NAVX token has a wide range of use cases within NAVI Protocol. These use cases for $NAVX have been designed to promote growth and asset composability across the broader Sui DeFi ecosystem. They are part of the structured journey toward achieving decentralization, community governance, and vital protocol autonomy.

| Governance:

Token holders can participate in the governance of the NAVI Protocol by voting on proposals and updates.

This decentralized governance process ensures that the platform’s development and future direction are driven by its users. Governance proposals would include:

  • Money Markets

  • New Proposals for collateral & isolated market candidates.

  • Proposals for incentivized pools.

  • Major platform updates.

| Dynamic Liquidity (dLP) provision:

Users can provide liquidity to NAVX/SUI and NAVX/vSUI pairs in DEXes to get LP tokens. They can then lock their LP tokens for a period of time in proportion to their supply amount to activate eligibility to receive rewards within the money market.

dLP utilities include:

  • Boosted $NAVX Emission: Users can earn additional $NAVX rewards on top of their basic supply/borrow APY.

  • Revenue Sharing: NAVI Protocol generates fees from borrowing within the platform. A portion of these fees is allocated to dLP holders, while the remaining fees are distributed to the platform’s treasury and other purposes as defined by the platform’s design.

  • Voting: Users who hold dLP tokens have more leveraged voting power than regular $NAVX token holders.

  • Eligibility: To trigger $NAVX emissions on both deposits and borrows, you must lock at least 2.5% of your deposit’s USD value in dLP tokens.

Conclusively, $NAVX’s utility encourages users and token holders to actively participate in the protocol’s governance and liquidity activities in NAVI’s ecosystem.

Token distribution

The $NAVX token allocation is designed to support the growth, sustainability, and decentralization of the NAVI Protocol. Here’s how the tokens are distributed:

Each allocation has a specific use case:

  • Team: 20% — Allocated for team members to align with long-term project success.

  • Treasury: 10% — Reserved for daily operations and strategic initiatives.

  • Liquidity Provision: 4% — To support market makers and secure liquidity.

  • Public Sale (IDO): 1.2% — Allocated for the initial decentralized exchange offering.

  • Marketing: 3% — Used for promotional and outreach activities.

  • Ecosystem & Airdrop: 45.8% — Dedicated to incentivizing TVL growth, running campaigns and airdrops. Includes the initial early supporters incentive.

  • Investors / Advisors: 16% — Allocated for investors and advisors.

Token Emission

The $NAVX Tokenomics endeavors to foster a shared vision of harmonization among stakeholders operating within the NAVI ecosystem, protocol functionality, and the $NAVX token, which forms a vital pillar of security for the NAVI Protocol.

Below, you can find the vesting table and release schedule for $NAVX during, and post-IDO:

Conclusively, the NAVX token distribution perpetuates the community narrative, by reserving the largest allocation for ecosystem participants and community members. The main goal is to provide a sustainable and rewarding incentive model that drives growth and contributes to decentralization.

Last updated