What is DMX?

DMX is proposed as the new native governance token of Demex, designed to power the next generation of omnichain trading and DeFi.

As part of Demex's planned evolution into a unified and comprehensive cross-chain trading platform, DMX would represent a significant upgrade from the current SWTH token, introducing enhanced utility and a more sustainable tokenomics model.

Proposed Token Utility

Under the proposal, DMX would serve three core functions within the Demex ecosystem:

1. Economic Utility

  • Block rewards through staking and validation

  • Real yield opportunities from:

    • Permissionless oracle listing fees

    • Permissionless perp pool creation fees

    • Permissionless spot & perp market listing fees

    • Money market fees

    • Trading fees

    • Network fees

  • Protocol-driven token buybacks

  • Trading and liquidity provision incentives

2. Governance Rights

  • Voting on protocol parameter adjustments

  • Governance participation rewards

  • Treasury management decisions

  • Platform roadmap influence

3. Network Operations

  • Network security through Proof of Stake (PoS)

  • Validator incentives

  • Network gas fees

  • Rewards for hosting decentralized frontends via IPFS

Proposed Tokenomics

Planned Total Supply

The proposal suggests a total supply of 8.52 billion DMX tokens, with the following planned allocation:

  • 25% - Ecosystem Development

  • 25% - SWTH Token Upgrade

  • 20% - Strategic Fundraising

  • 10% - DMX Points Airdrop

  • 10% - Treasury

  • 10% - Team

Proposed Value Accrual Mechanisms

  1. Trading Fee Distribution: A portion of trading fees would be distributed to DMX stakers

  2. Network Fees: Gas fees from network operations would contribute to staking rewards

  3. Listing Fees: Revenue from permissionless perp market listings

  4. Protocol-Driven Buybacks: Systematic token buybacks to support token value

Proposed SWTH to DMX Upgrade

  • Proposed Conversion Ratio: 1 SWTH = 1 DMX

  • The upgrade process is intended to be automatic for most holders

  • No geographical restrictions are planned

Proposed Upgrade Process

Exchange Holdings

  • Centralized exchanges would be expected to handle the upgrade automatically

  • No action would be required from users

  • DMX would appear in exchange wallets after the upgrade

Network Holdings

  • Carbon Network: Automatic upgrade to DMX

  • Cosmos Ecosystem: Automatic upgrade to DMX once platforms update their frontend

  • Other Chains (Arbitrum, Ethereum, BSC, etc.): Automatic upgrade once platforms update their frontend

Staked Tokens

  • Staked SWTH would automatically convert to staked DMX

  • Staking rewards would continue uninterrupted

  • Existing staking positions would be preserved

Planned DMX Points Integration

Under the proposal, DMX Points holders would receive an airdrop based on their accumulated points. The snapshot date and distribution details would be announced through official channels if the proposal passes.

Future Development Plans

The introduction of DMX would enable several key developments for Demex:

  1. Enhanced Market Infrastructure

    • Professional market making programs

    • Deep cross-chain liquidity

    • Strategic CEX listings

  2. Chain Security Improvements

    • Robust validator economics

    • Future-proof design for upgrades

    • Enhanced network security features

  3. Ecosystem Expansion

    • Multi-chain deployment support

    • Cross-chain trading capabilities

    • Integrated DeFi features

Frequently Asked Questions

Q: Will the upgrade of my SWTH tokens to DMX tokens happen automatically? Yes, SWTH on Carbon network will automatically become DMX tokens. SWTH on other IBC networks or protocols will automatically become DMX tokens once they update the UI. No user actions are needed, it will be the same balance and denom.

Q: Why now and how does this upgrade benefit SWTH token holders? This upgrade aligns with our multichain expansion and will help with brand unification for better clarity, improved tokenomics for more sustainability, and strategic fundraising focused on marketing activities, ultimately helping Demex to gain more users and grow.

Q: I have my SWTH on an exchange (MEXC, Gate, etc), or on a non-IBC chain (i.e. Arbitrum, Ethereum, BSC), do I need to do anything? Yes, if your SWTH is on a non-IBC chain, you will have to deposit them into Demex so that they can become DMX.

Q: My SWTH is in rSWTH. Do I need to do anything? You can continue holding rSWTH. StafiHub will handle the upgrade to rDMX on their end. Any new tokens minted after unstaking will be DMX instead of SWTH after the upgrade date.

Q: What will happen to Carbon network once we upgrade the token? The underlying network and assets remain unchanged. Carbon network will continue to operate but will be upgraded as Demex Chain in all user interfaces and communication to reflect a cohesive brand experience.

Q: When does the upgrade take place? The upgrade is expected to occur in March 2025. Specific date will be announced closer to launch.

Q: What happens to my staked SWTH tokens? Your staked tokens will automatically become staked DMX. No action is required - this is handled at the protocol level.

Q: Will the total value of my holdings change? No. When SWTH becomes DMX, the value remains the same. While the total supply is increasing through new allocations, we've designed the tokenomics to enhance long-term value through improved utility, professional market making, and sustainable growth mechanisms.

Q: What about Demex Points? Demex point holders will receive DMX from the airdrop allocation proportional to the points they have. Points earned until the snapshot date will be eligible for the airdrop.

Q: Will the upgrade affect my trading activities? No, all trading activities will continue uninterrupted during the upgrade process.

Q: Will DMX be listed on major exchanges? We are working with professional market makers and exchanges to ensure strong liquidity and trading support for DMX. Specific listing details will be announced in due course.

Q: Are there any geographical restrictions? No. Since this is an automatic upgrade rather than a token swap or airdrop, there are no geographical restrictions.

Q: Why am I seeing Twitter posts promoting this upgrade? We will exclusively inform the community via our official X account and the official Telegram. Information and news via other accounts, links, posts or DMs are fake and are trying to scam you.

Q: Where can I get more information?

  • Join our Telegram for regular updates or ask specific questions

  • Follow our Twitter for announcements

Official Resources

⚠️ Important Notice: This documentation outlines a proposal that has not yet been implemented or approved. All details are subject to change. Official announcements about the proposal's status and final details will only come through Demex's verified channels. Never share your private keys or seed phrases.

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