The SX Community Fund enables SX holders to benefit the underlying SX projects
The vast majority of treasuries associated with public blockchains are opaque and run by centralized entities such as corporations (BlockOne) or foundations (Ethereum Foundation). Token holders have no rights nor say in the direction of these treasuries, nor do they benefit directly from the profits of any investments.
SX Network is natively integrated with the SX on-chain treasury, giving SX holders complete control and transparency into its operations. The SX treasury is extremely well-funded, with 55% of all SX token supply vesting to the fund over the next four years, which is equal to approximately $175m USD given current market prices of April 17th, 2022 .
The Community Treasury will be used to fund initiatives such as:
To spur adoption of applications running on-top of SX Network. This is particularly beneficial for projects that don’t yet have a token live or have tokens with relatively low market caps. It will also help incentivize other projects with established user bases to deploy on SX Network.
Investment into projects that are deployed directly on-top of SX Network. This enables holders of the SX token to directly benefit from all of the activity happening on the SX Network blockchain while giving projects a new source of funding.
Programs to bring users from other communities to the SX Network community. Promotional campaigns can include airdrops, paid media, influencer marketing, etc. Can also include funding for technology development such as protocol parameter changes, blockchain research, or supporting application development.
One of the most exciting facets of a community-owned prediction market platform is the idea of a community-managed treasury. The community treasury is in charge of accelerating the SX ecosystem through incentives (e.g. liquidity mining), marketing initiatives (e.g. tournaments), and other strategic partnerships. SX token holders that stake their tokens have control over the Treasury.
The community treasury will initially be seeded with 53.0% [530,000,000 SX] of the overall 55.0% community allocation. SX token holders can choose to distribute these tokens on an ongoing basis through contributor grants, community initiatives, liquidity mining, among others. It is up to SX token holders to govern this community treasury sustainably to ensure the long-term survival of the protocol.
SX Community Treasury assets as of April 17th, 2022
The SX protocol currently charges a 4.00% fee (subject to change by governance) on the winnings of every bet. These fees are automatically pooled into the SX Community Treasury contract. The fees that flow into the fund are fully on-chain and auditable.