The immense growth and success of the TrustSwap ecosystem has allowed the company to buy back a significant amount of $SWAP tokens in the process. Our aim is to decentralize the ownership of the $SWAP token while simultaneously helping the token economy in a positive direction. That’s why we are launching the Barter Contracts!
What are Barter Contracts?
Barter Contracts aim to achieve wide decentralization of the $SWAP token and provide more benefits to $SWAP stakers. Barter Contracts allow users to purchase $SWAP at a discount, where the larger the discount the longer a user has to wait to buy $SWAP.
Any participant performing KYC requirements from approved jurisdictions can purchase tokens at a discount in exchange for a brief holding period. Barter Contracts have been live on our dashboard since February 18th, 2022. They are available to buy via the Ethereum as well as the Polygon network in USDT.
KYC is mandatory for Barter Contracts. Some users may already be whitelisted for KYC if they participated in previous TrustSwap Launchpads. The USA and Canada are excluded from Barter Contracts. Canada is still eligible for Launchpads.
Users purchase Barter Contracts in USDT on Day 1. On the day the hold period ends users can claim their $SWAP from the dashboard.
| Hold Period | 14 Days | 30 Days | 60 Days | 120 Days |
| Discount | 4% | 6% | 8% | 10% |
We are continuously monitoring users’ engagement and may adjust discount rates and hold periods for the community. For example, if the 14-day period is the most favourable among users, we will lower the discount for that tier.
Step by step walkthrough of the process from a user’s standpoint:
1) User selects one of the various hold options.
2) User sends the desired amount of USDT into that particular contract.
3) A countdown timer begins on the user’s dashboard based on the period of the contract.
4) At the end of the timer, the user can claim his $SWAP.
What happens to the capital?
The flow of the funds a user spends to buy Barter Contracts, follows a specific flow to decentralize the $SWAP token, therefore creating additional benefits for stakers and holders.
- 33% of the Barter Contract payment remains in $SWAP treasury. These funds go towards the company’s business development activities including the addition of liquidity, acquisitions, marketing and more.
- 66% of the Barter Contract payment is used for $SWAP token buybacks. We buy back SWAP and therefore create a positive impact on the token’s price.
Of the 66% of $SWAP bought back:
- Half (33% of total) we put them back to the long term staking pool where users can obtain staking rewards.
- Half (33% of total) goes back into the Barter Contract. Users will ultimately buy these funds as $SWAP and then we take the same portions to buy back SWAP (⅔), allocate for biz dev activities (⅓)! This creates a sustainable flywheel effect for the community by following this recurring process.
When we buy back $SWAP through The Crypto App or Team.Finance services a big amount of funds go back to the barter contracts to serve our aim to decentralize the token to the community without creating sell pressure. Barter contracts instead create buy pressure and staking rewards.
Other projects tend to sell their company tokens, putting selling pressure on the market, and lowering their token price. Through these Barter Contracts, the $SWAP that is distributed to the community through purchases in USDT, places buying pressure on the SWAP token and also increases staking rewards dramatically.
Due to high staking rewards, once the purchasers of a Barter Contract have their tokens unlocked, we anticipate to see these tokens get staked to earn the rewards. This is a model similar to Olympus Dao.
The barter contracts are set to continue indefinitely, as a percentage of $SWAP buybacks from Team Finance, The Crypto App, Swappable + more continue to roll in, they will be added into the barter pool.
$SWAP Tokenomics
For a quick refresher on tokenomics, see below:
– Swappable: 20% of all trading fees go towards $SWAP token burns, 80% staking rewards
– Team Finance: 100% of revenue goes for buybacks, 80% for TS, 20% staking rewards
– The Crypto App: 100% of revenue goes for buybacks, 80% for TS, 20% staking rewards
With 80% available from both Team Finance and The Crypto App revenue, these barter contracts will be able to continue indefinitely with compounding positive momentum.
