DMX Token
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
Trading Fee Distribution: A portion of trading fees would be distributed to DMX stakers
Network Fees: Gas fees from network operations would contribute to staking rewards
Listing Fees: Revenue from permissionless perp market listings
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:
Enhanced Market Infrastructure
Professional market making programs
Deep cross-chain liquidity
Strategic CEX listings
Chain Security Improvements
Robust validator economics
Future-proof design for upgrades
Enhanced network security features
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 before Q3 2025. Specific dates 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 based on the points they have. Points earned until the snapshot date will be eligible for the airdrop. Airdrop allocation ratio will be announced closer to launch.
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: Where can I get more information?
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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