Monthly Fees (Green) vs. Monthly Revenue Since Launch (Purple)

DeFi

Lido is a liquid stake solution that started with Ethereum and now supports four more proof-of-stake networks. Lido helps users stake their proof-of-stake coins and receive staked tokens (stToken) to use across various DeFi platforms.

There is a maximum supply of 1 billion LDO tokens as the native token of Lido DAO. With LDO, users can participate in governance, which allows users to gain control over the protocol parameters and treasury.

Lido Finance

After the genesis supply in June 2021, instead of issuing tokens every block like other Cosmos chains, Osmosis issues tokens at the end of each epoch (one day). Similar to Bitcoin’s halving method, Osmosis’ token issuance follows a ‘thirdening’ schedule. This means that the issuance level is cut by one-third every year. In other words, during the first 365 epochs (year one), the issuance of OSMO tokens was 300 million. During year two, starting on the 20th of June 2022, Osmosis will issue 200 million tokens. In year three, the amount decreases to 133 million tokens. With this method, the circulating supply will reach 90% of the total supply by the end of year 6. Nonetheless, this process will continue until the circulating supply reaches the maximum supply of 1 Billion OSMO.

This means that OSMO will be highly inflationary in the beginning but, over time, the issuance tapers off and becomes a lesser percentage of the circulating supply.

After the genesis supply, the issuance of the rest of the supply gets distributed on the following basis:

The current state of supply of the OSMO token is shown in the picture below gathered from 

. As we can see, around 47% of the total supply has already been minted and only about 23% of the circulating supply is liquid because tokens are locked in delegations, in liquidity pools, or belong to the community pool.

Diagram

Tokenomics 101 Article

Walkthrough Video

Osmosis is an app-centric chain and DEX build in the Cosmos ecosystem. The protocol is a trading platform and automated market maker (AMM) protocol that allows developers to build customized AMMs with sovereign liquidity pools. 

Osmosis DEX

Initial supply of 72m was split up as follows: 60m ETH publicly sold to investors 12m ETH allocated to foundation and early contributors: 

https://messari.io/asset/ethereum/profile/launch-and-initial-token-distribution

The issuance is dynamic and predicted between 0.3m and 0.6m Eth per year, but there is also a burn of tokens for every transaction. 

Layer1

Ethereum still is the largest smart contract chain, with lots of innovation and on chain activity

Other scenarios such as Gaming, NFT, Identity and DAOs are emerging aside from DeFi

The recent tokenomics changes (EIP-1559 & Merge) are yet to be digested and their impact needs to be further observed

Ethereum is working on performance improvements which could reduce gas fees. The impact of this on demand for gas is uncertain.

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Tokenomics Evaluation

A Proof of Stake Network which allows transacting and execution of smart contracts against payment of gas in the native token $ETH.

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Ethereum

A Proof of Stake Network which allows transacting and execution of smart contracts against payment of gas in the native token $ETH.

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