WitSwap Tokenomics

Note: No decision has been made on whether or not the WitSwap platform will have a tradeable WitSwap token (WITS). This section represents a potential hypothesis on:

• The value that would accrue to a WITS token

• The distribution of the WITS token

should the team decide to a WITS token.

Value that would accrue to WitSwap (and hence, WITS)

In the initial phase, WitSwap's source of revenue is the 5% bridge fee on all transfers between the Witnet blockchain and Ethereum blockchain.

In subsequent phases, WitSwap may have other sources of revenue, including, but not limited to:

• Fee as a percentage of emissions from liquidity provision (i.e. staking fee)

• Fee as a percentage of interest income earned on digital assets deposited

• Fee as a percentage of interest payments made on digital assets borrowed

Furthermore, it is envisaged that holding the WITS token may accrue additional benefits to the token holders e.g. reduced bridge fee, reduced staking fee, or receipt of additional bonuses.

If a WITS token was issued, it is envisaged that 50% of all of these fees would be distributed to WITS token holders on a weekly basis. The other 50% of the fees would be retained by the platform.

Distribution of the WITS token

If a WITS token was issued, it is envisaged that the distribution would be in the following manner:

• 1,000,000 WITS token, issued as an [ ].

• 50% (500,000 WITS token) will be distributed to WitSwap shareholders, with a 1-year lockup.

• 25% (250,000 WITS token) will be retained by the platform, for distribution to other advisers and other parties.

• 25% (250,000 WITS token) will be distributed via private sales to strategic investors & partners.