By
Kseniia Klichova
September 29th, 2021
The DIVER token comes with three major features of governance, incentivization, and staking. The token sale will kickstart on September 20.
On Wednesday, September 9, decentralized protocol Divergence announced the upcoming public sale of its native token DIVER on MISO launchpad.
Over the last three months, Divergence has recorded massive growth in its community. Divergence has gained market popularity as a platform for options and volatility derivatives. This open, permissionless, derivatives exchange is completely decentralized and owned by its users.
Through its token sale, Divergence also plans to distribute 2% of the total DIVER token supply via a Dutch auction on MISO launchpad. The token sale will happen on Monday, September 20. Furthermore, the details of the token sale are as below:
- Date: 27 September, 13:00 UTC.
- Auction Model: Dutch Auction
- Supply: 20M DIVER (2% of total supply)
- Starting Bid: $0.1/DIVER ($2M raise)
- Minimum Bid: $0.05/DIVER ($1M raise)
- Max, Initial Market Cap: $7.75M ($0.10 x 77.5M DIVER)
- Min. Initial Market Cap: $3.87M ($0.05 x 77.5M DIVER)
Understanding the Divergence (DIVER) Token Tokenomics
The DIVER token serves as the governance token of the Divergence protocol. Thus, it allows the community members to vote and decide on future developments. These are the three key uses of the DIVER token:
- Governance: Divergence will be soon releasing its on-chain governance portal. furthermore, DIVER Token holders can vote and propose on the governance proposals on the platform. Also, through voting, they can decide on protocol parameters like trading fees, and the introduction of new products and features.
- Incentivization: The community members contributing to the growth of the Divergence ecosystem will receive rewards in DIVER tokens. Also, another way to gain ownership of DIVER tokens is providing liquidity to options market on Divergence. The platform is also planning for more community programs to help users earn DIVER tokens.
- Staking: The Divergence platform will be soon releasing its staking contracts. Thus, users will be able to stake their DIVER tokens and earn yield over the long term. Various types of token rewards will be periodically shared amongst the stakers of DIVER.
The Dutch Auction Mechanism
The Divergence platform is facilitating Dutch Auction offering fair and transparent price discovery to participants. In this auction type, the token price opens at a high and descends over time. The final offer price is offered once all tokens are sold. As Divergence explains:
“During the auction process, participants bid with the amount of capital they’d like to commit, and have the option to hold out until the price of the token decreases to a level they are comfortable with. In doing so, however, they face an increased risk of the token selling out before they commit to the purchase.”
Thus, the auction participants get the flexibility to decide what price to pay and when to pay. The Dutch auction system is permissionless as well as scalable.
