SWTH

The Switcheo Token (SWTH)

The Switcheo Token (SWTH) is the native cryptocurrency and governance token of Switcheo TradeHub.

SWTH follows an inflationary token model that decreases in rate over time, and is issued as block rewards over 5 years. After the 5th year (31 March 2025), no new tokens will be issued.

Emission Rate

For the first 4 years after Switcheo TradeHub's launch (31 March 2020), emission of SWTH as block rewards will occur on a weekly basis. In Week 1, the emission of SWTH began at a rate of 1.92%, decaying by 1.65% week-on-week. At the final Year 5, tokens will be issues at a constant rate (no decay).

SWTH inflation APY and reward model
SWTH supply curve over 5 years

The maximum token supply is estimated at 2.16B SWTH tokens. View the current circulating supply of SWTH on Tradescan.

Transaction fees

All transactions on Switcheo TradeHub incur a fee of 1 SWTH with the exception of the following transactions:

  • Committing liquidity pool tokens on Demex - 30 SWTH

  • Claiming liquidity rewards on Demex - 30 SWTH per pool

  • Unlocking liquidity tokens on Demex - 30 SWTH

  • Creating a pool on Demex - 100 SWTH

  • Claiming staking rewards - 1 SWTH per validator

Staking

Switcheo TradeHub adopts the dPOS staking mechanism where SWTH is staked to a network of validators who secure the protocol. Staked tokens receive rewards from trading fees, transactions fees and block rewards as consideration for their bond. All rewards are distributed proportionately to the amount of SWTH staked, while unstaked tokens do not attract any rewards at all.

Block rewards are distributed as follows:

  • 90% of block rewards are distributed to stakers

  • 10% goes to the Switcheo Development Fund for protocol development and ecosystem growth

View staking reward APR on Tradescan.

Staking rewards may be affected by implementation of liquidity pool rewards. Read more here.

Governance

All SWTH stakers are eligible to vote on governance proposals and an individual's voting power is determined by the amount of SWTH staked. If a staker chooses not to exercise their vote, validators are able to submit a proxy vote on the staker's behalf. Thus, all stakers are encouraged to participate in the governance process and exercise their votes on proposals.

Liquidity pool rewards

Liquidity pool rewards were first introduced to bootstrap initial liquidity on Switcheo TradeHub's native liquidity pools.

30% of block rewards are issued as liquidity rewards over a period of 6 months (27 weeks), ending on 16 September 2021. Rewards decrease linearly each week to 20% on the final week.

Distribution of liquidity rewards over time

Learn more: