Revenue Model
Viability From The Start
The City of Gold Awaits
The El Dorado Team believes that the 2019-2021 crypto bull market saw a complexity bubble. Vast overcomplication of revenue and token models meant to grab in a short-sighted, often ponzi-like fashion.
By contrast, the El Dorado model will start maximally simple, consisting of two primary revenue streams:
1) DEX Transaction Fees
2) Security Node Revenue
While we intend to create secondary revenue streams from venture investments and promotional work down the line, we are first and foremost the first Native Maya DEX, and as a DEX we will run a simple fee model. In addition, we are already set up to run one of the first Maya Nodes (currently funded and ready to churn in).
As we are the first Native Maya DEX, and Maya is a fork of THORChain, the best comparable's for our model are the four THORChain frontend DEXs — THORSwap, THORWalletDEX, DefiSpot, Rango:
THORSwap | THORWalletDEX | DefiSpot | Rango |
|---|---|---|---|
0.3% Fee *( .3% - 0%) | 1% — Basic
0.3% — Affiliate
0.1% — Community | 0% Fee
(0.03% planned) | 0.1% Fee (All Tx) |
We benefit greatly from the precedents set by THORChain DEXs.
You can see their revenues below:
El Dorado's revenues will depend entirely on the TVL and volume we can drive to Maya Protocol from our frontend.
We will start with a feeless ramp up period (live as of our platform launch on April 27th, 2023) — During this Product Development phase our primary goal will be user attraction, community growth, and product feedback.
Due to some economic drivers we need to keep the fees at .75% temporarily, we will be looking to revisit the fees as laid out as well as for nft communities**
El Dorado Fees — Post Ramp Up Period |
|---|
0.1% — Public
0.03% — Milady/Remilio/Schizoposters NFT Holders |
We will keep our fees lower than both THORSwap and THORWalletDEX for 6 months of community building and product feedback gathering.
Separate from DEX fees, The El Dorado team has a Maya Security Node set up and funded as of May, 2023.
Presently, the node is owned 100% by the team.
Our plan is to permit the community to contribute funds to buy percentages of the node to share in the revenues.
In effect, this node will start 100% team-owned, transitioning over time to fractional ownership by the El Dorado community. All ownership details will be on-chain and transparent. Node Revenues will be distributed daily.
THORChain nodes currently net node operators ~$17,000/Month. Considering the Maya Protocol starting TVL is 25M, 20% of THORChain's 125M TVL, a napkin math estimated starting point for El Dorado's Node Revenue would be ~3-5k/month, a number that will grow as Maya liquidity and utilization increase.