Weekly Token Spotlight: INDY

The world of decentralized finance (DeFi) on the Cardano blockchain witnessed a significant milestone on November 14th when the $Indy token was introduced through a Minswap Liquidity Bootstrapping Event (LBE). This event, which concluded on November 20th, marked the beginning of a new era for the Cardano ecosystem. $INDY is the governance token at the heart of the Indigo Protocol, making it the pioneer synthetics protocol on Cardano. In this article, we delve into the fundamental aspects of $INDY, from its tokenomics to its multifaceted utility.

Exploring $INDY Tokenomics and Distribution

At the core of the Indigo Protocol lies the $INDY token, serving as the governing force of the Indigo DAO. With a total supply of 35 million tokens, it’s important to note that only 6.96 million $INDY tokens are currently in circulation, accounting for approximately 19.9% of the total token supply.

Indy Distribution Pro page on TapTools

The token has garnered significant attention, boasting a Market Cap of
$9,784,402, and a Diluted Market Cap of $49,185,596, placing it at #13 in the top 50 tokens on Cardano. There are currently 6.42 thousand wallets holding $INDY, a 6.77% increase in the past 30 days. The median holder balance stands at 5.00 $INDY, and the average holder age is 205.46 days, highlighting the commitment of early adopters who have been part of the journey since the protocol’s inception.

Indy Staking Pro Page on TapTools

One of the most remarkable statistics is the significant increase in staked $INDY. Presently, there are 2,593 addresses staking 4.44 million $INDY, representing a remarkable 63.79% of the circulating supply. This is a substantial leap from just 27,997 $INDY tokens staked ten months ago, reflecting a staggering 15,858,742.01% increase.

Indy Staking Pro Page on TapTools

The top five stakers collectively hold 2,371,392 $INDY tokens staked, accounting for slightly over 53% of all $INDY in governance staking.

Utility

One of the primary functions of $INDY is enabling on-chain voting. Users who stake their $INDY tokens in Indigo’s governance become DAO Members, granting them the authority to participate in the decision-making process and profit-sharing model. Stakers also receive governance staking rewards, creating an additional incentive to actively engage in the governance system. Users must have voted on a proposal within the last 90 days in order to receive INDY rewards, encouraging continued participation in protocol governance.

Indigo’s innovative approach to rewarding users sets it apart. Staking $INDY allows users to claim a share of all collected protocol fees, directly proportional to their stake’s size relative to the total $INDY staked across the platform. Notably, this includes rewards in ADA, further enhancing the attractiveness of governance staking.

Another essential utility of the $INDY token is the ability to propose changes and updates within the Indigo Protocol. This privilege comes with a 100 $INDY deposit requirement, intended to deter low-quality or malicious proposals. This deposit requirement applies to various proposal types, including iAsset whitelisting, iAsset updates, text proposals, protocol updates, and protocol parameter upgrades. All proposals must undergo two initial phases defined in the DAO Constitution and DAO Voting Procedures. If a proposal fails to garner support during these phases, the proposer forfeits their deposit, which then contributes to the DAO Treasury.

Conclusion

In conclusion, $INDY plays a central role as the governance and utility token within the Indigo Protocol, pioneering the way as the first decentralized synthetics protocol on Cardano. This innovative platform enables users to access on-chain exposure to real-world assets. As the driving force behind Indigo’s ecosystem, $INDY empowers users with governance rights while facilitating a diverse range of utilities, positioning itself as a key element in Cardano’s evolving decentralized finance landscape.

You can find out more about Indigo at the following link:https://docs.indigoprotocol.io/