Aligned Tokenholder Incentives

Splitting governance from utility tokens better aligns holder incentives and reduces governance-related security risks.

Initially, the direction of the Ambidex project will be determined largely by the core team (whilst taking the voice of the community into serious consideration). When the project is more developed and ready to embark on its path to full decentralization, we will gradually introduce means of on-chain governance and decentralized protocol ownership. We will be releasing the $ADX token which, although it will not initially provide governance rights over protocol development, will provide full governance rights over the AmbiDAO and treasury.

$AMBI is our utility token. This token has no max supply, and is awarded to users for providing liquidity, and using the platform. At launch, users can stake $AMBI to earn additional farm rewards. As we build the rest of the Ambidex product line, burning or locking up $AMBI will be required to access certain features and privileges on the platform (i.e. to participate in early and limited access products).

Most DeFi applications incentivize users by paying them in governance tokens. This creates immense sell-pressure on the governance token, which hurts long term investors of the platform. By divorcing governance from the incentives token, the Ambidex project aims to better align token holder incentives.

This system is however, not without its potential issues. One of the main problems we’ll face is sustaining the price of $AMBI. We intend to maintain demand for $AMBI by allowing users to burn $AMBI to access certain privileges on the platform. Think of $AMBI as your credit card points or airline miles. These tokens are highly speculative, and are intended to be accumulated and spent or burnt in order to unlock certain benefits on the platform.