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Tokenomics

GEM is pegged to USDC in Fantom, Avalanche and Binance Smart Chain!
*Note: Below tokenomics are the same across 3 chains.

GEM (Diamond Finance Token)

GEM token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain GEM's peg of 1 GEM = 1 USDC in the long run.

Distribution per Chain

Distribution of GEM during Epoch Expansion is as follows:
  1. 1.
    86% as Reward for Staking's SGEM Stakers
  2. 2.
    7% goes to Treasury
  3. 3.
    7% goes to core teams
Note: If there are bonds to be redeemed, 65% of minted GEM goes to Treasury until it's sufficiently full to meet bond redemption. If there is no debt (GBOND), it will follow maximum capped expansion %.

SGEM (Diamond Shares)

SGEM is one of the ways to measure the value of the Diamond Protocol and Shareholder Trust in its ability to maintain GEM close to peg (USDC). During epoch expansions the protocol mints GEM and distributes it proportionally to all SGEM stakers in the Staking page.
SGEM holders have voting rights (governance) on proposals to improve the protocol and future use cases within the GEM money ecosystem.

Distribution per Chain

SGEM has a maximum total supply of 100,001 tokens distributed as follows:
  1. 1.
    Rewards 86% : *86,000 SGEM are allocated for incentivizing Liquidity Providers in GEM-USDC LP & SGEM-USDC LP
  2. 2.
    Treasury Allocation 7% : 7,000 SGEM vested over a period of 90 days
  3. 3.
    Team Allocation 7% : 7,000 SGEM vested over a period of 90 days
  4. 4.
    Initial Mint: 1 SGEM minted upon contract creation for initial pool
*Shares Rewards are allocated equally:
  • GEM-USDC LP: 43,000 SGEMs
  • SGEM-USDC LP: 43,000 SGEMs

GBOND (GEMs Bond)

GEMs Bond... What a name!
GBOND's main job is to help incentivize the changes in GEM supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of GEM falls below 1, GBOND will be issued and can be bought with current price GEM price.
Purpose of buying GBOND (exchanging GEM for GBOND):
  1. 1.
    Burns GEM tokens
  2. 2.
    Takes GEM out of circulation (deflation)
  3. 3.
    Helps to get the GEM price back up to the peg.
These GBOND can be redeemed for GEM when the price is above peg in the future. Investors who are here for long-term and are bullish on GEM can choose to hold GBOND longer as the premium gets higher when GEM's TWAP increases over time.
Buying GBOND addresses GEM inflation issue and helps to push GEM back above the peg.
Note: Contrary to early algorithmic protocols, GBOND does not have expiration dates on redemption GEM.
All holders are able to redeem their GBOND for GEM as long as the Treasury has a positive GEM balance which typically happens when the protocol is in epoch expansion periods.