DeversiFi is evolving.

As DeversiFi evolves so must its community. In order to empower a vibrant community DeversiFi needs a governance token that is widely and fairly distributed, has a clear mission, and can be used to incentivise the users and supporters that will play an active role in the future of DeversiFi.

It is for this reason that we are introducing DVF, the DeversiFi governance token, which will be launching soon.

For an overview of DVF, read more here.

Distribution to NEC Holders

Although NEC was originally created for a different purpose, as reflected by its token distribution, NEC has been linked in several ways with DeversiFi since 2019.

A portion of the DVF token supply is therefore reserved for NEC holders in order to recognise the support that many of you have shown towards DeversiFi over the past several years. We hope that you will remain part of our community going forward and benefit from DeversiFi's growth.

The airdrop distribution will be based on a snapshot of NEC balances taken on 25th March at block number 12107360. Now that the snapshot has been taken the claimable amounts will be calculated shortly and then published.

High level process:

  • The airdrop will be claimable within DeversiFi (on L2, with no gas cost to claim!)
  • 2% of the DVF supply will be unconditionally claimable pro-rata by all NEC holders.
  • 5% of the DVF supply will be claimable by NEC holders based on a set of rules that are designed to favour those who have actively supported DeversiFi, engaged in NEC governance, and are more closely aligned with DeversiFi’s future vision.
  • A separate process will be available to allow those holding tokens on centralised exchanges to apply for the airdrop. The same overall methodology will apply.

Unconditional allocation of 2% of supply:

  • Pro-rata distribution to almost all NEC holders.
  • NEC tokens held by DeversiFi and DeversiFi founders will be excluded from the addresses eligible for the airdrop.
  • Holders of approximately 450M out of the total 618M NEC will therefore be eligible.
  • DVF will remain claimable for up to 2 years. Unclaimed amounts will then be added to the liquidity mining pool.

Conditional allocation of 5% of supply:

  • NEC tokens held by DeversiFi, DeversiFi founders and Bitfinex will be excluded from the addresses eligible for the airdrop.
  • Distributed based on a points system. This points system favour more active token holders, and those who purchased their tokens on the market, as opposed to those who received tokens at zero cost.
  • Claimable DVF amounts will reduce by 20% every 2 weeks if unclaimed, and the reclaimed tokens will go back into a pool.
  • After 3 months 50% of the reclaimed DVF will be distributed to any airdrop recipients who have not sold any of their claimed tokens.
  • After another 3 months the remainder of the reclaimed DVF tokens will be distributed to airdrop recipients who have not sold any of their claimed tokens.
  • The amount of redistributed DVF that can be received at each 3 month checkpoint by each address will be capped in proportion to the size of the original distribution received by that address.

Methodology For 5% Conditional Allocation

Not all NEC holders are eligible for the additional 5% allocation. The following methodology will be used, in combination with the NEC balances snapshot taken on 25th March.

Principles:

  • Rewarding those who are most in alignment with the vision of DEX trading and DeversiFi
  • Rewarding those who have been most active in governance and liquidity provision for DeversiFi
  • Dilution of those who received NEC for free in the Ethfinex airdrop in 2018

Rules:

Based on the above principles we have determined the following rules that will lead to greater weighting of new tokens for NEC holders meeting these criteria.

  1. NEC that was purchased after the 13th August 2019 will be weighted more highly. This was the date when it was first announced that DeversiFi would be created, and that NEC would become linked with DeversiFi and have its utility revamped.
  2. NEC that has been deposited into Balancer or Uniswap pools to provide liquidity, or earned as rewards for depositing into Balancer, will be weighted more highly.
  3. NEC that was purchased on DeversiFi will be weighted more highly.
  4. NEC that has been staked into the NEC DAO will be weighted more highly, in proportion to the number of months it has been staked.

Points:

A point system would be used to calculate the weightings, with a maximum weighting that can be earned being 2 points.

Rule Points
NEC purchased (as opposed to received in initial distribution) +0.5
NEC purchased after 13/08/2019 +0.5
NEC purchased on any DEX including DeversiFi +1
NEC provided as liquidity in Balancer or Uniswap pools +1
NEC staked in necDAO 0.2/month up to max of 0.75

For example, if NEC was purchased after 13/08/2019 on DeversiFi, this would lead to 0.5 + 1 = 1.5 points.

DeversiFi's Future Relationship with NEC

DeversiFi has collaborated in the past with NEC’s DAO (necDAO) and the NEC community. DeversiFi helped in 2019 to establish the necDAO and has been an active token holder of NEC since then. However NEC is not a governance token for DeversiFi, and has an independent mission, significant treasury (over 24M USD), and a token distribution that has existed since long before DeversiFi was created.

Going forward as a project we intend to step away from participation in NEC governance. We will be symbolically burning all of the NEC that Liquidity Labs (the company developing DeversiFi) currently holds, for a pro-rata share of the treasury, in order to focus fully on DVF.

We believe that NEC has lots of potential to continue to evolve in any direction that the DAO and community chooses and wish the best of luck!

The Future of NEC

As well as receiving DVF tokens, NEC holders will have several options available to them after this airdrop.

NEC has a sophisticated DAO that can vote on its future, and currently has treasury containing ETH worth over 24 million USD! This treasury could be spent in any way chosen by token holders.

If you do not wish to continue to be part of the NEC community you also have the ability to burn your NEC to receive a proportional share of the ETH in the treasury at any time. As of 25th March, burning NEC via this method would lead to an ability to claim ETH worth ~$0.04-0.05  per NEC.

NEC can be burned by connecting a wallet to Etherscan and using the following steps:

  1. Call approve for NEC allowing the Treasury contract to spend your NEC
  2. Call the burnTokensAndClaimeShareOfTreasury function on the treasury function to burn your NEC
Step 1: Approve 0xe851048c101abbdac26615c44dcec4c051864125
Step 2: Burn

*The amount of NEC must be multiplied by 10 to the power of 18.

A video guide is here:https://support.deversifi.com/en/article/burn-nec-to-claim-necdao-eth-guide-j4d9ct/

For any questions, queries or for clarification please reach out to us on our Discord linked below.


About DeversiFi

DeversiFi makes DeFi easy. Swap, Invest and Send without paying Ethereum network fees.

Website: www.deversifi.com

Twitter: https://twitter.com/deversifi

Discord: https://discord.gg/bfNDxZqPSvf