# MOD Token - Metrics, Incentives & Revenue

By [Modular](https://paragraph.com/@modular) · 2023-02-16

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**Overall Token Metrics**

The **MOD** token distribution and allocation will focus on accruing value. Hence, it’s utility will be mainly based on rewarding our users, incentivize developers and fee-redistribution. It’s main purpose is to create a long-term incentive for ecosystem participants and maintain a suite of products around the app.

*   **Supply:** 96,000,000 (MOD)
    
*   **Contract Address:** 0x244Ae62439C1Ef3187f244d8604ac2c391eF2b53
    
*   **MOD/USDC LP:** 0x74656Efe9B164D82D0bc32B6Cf6888F3F22F871F
    

![MOD Token Distribution](https://storage.googleapis.com/papyrus_images/b99d943ed24866b45e390bc18c2cbf27c8a7302b93c43272dc45441ad835c330.png)

MOD Token Distribution

The initial circulating supply is approximately 10% of the total supply, and it will be distributed as follows:

*   5% for Private Sales and Advisors (Vested tokens)
    
*   5% incentives for module developments
    
*   3% for Growth, Infra and Team (Partially vested)
    
*   2% for Market Making
    

**Modules - Incentives & Revenue**

![Circular Tokenomics](https://storage.googleapis.com/papyrus_images/9c7bf50f97c09bea09e9c864e1a6914de055bf73eaba96aaa8109c5dfd8724d5.png)

Circular Tokenomics

As per stated above, the **MOD** token will be used to maintain and boost a suite of products and features around the app. Most of them contribute to deepen **MOD/USDC LP** and buying pressure:

*   **Swaps** using the ModularRouter
    
    One of the key features of Modular Wallet is it’s one-tap swap. For every Arbitrum token pair (and other EVM-compatible chains soon as well) you’ll be able to exchange them using the best possible route and fee. We’re currently using **CamelotDEX**, **1inch** and **0xprotocol** on the backend to assure the best rate possible. Moreover, you’ll receive **MOD** token cashback for every single swap.
    
    In that sense, whenever a swap is being made, the ModularRouter automatically allocates trading fees to buy **MOD** from the **MOD/USDC LP**: Half of these fees go directly to the user, and the other half to the Modular Treasury. This mechanism allows constant buying pressure on the **MOD** token whilst giving actual usability to the app.
    
*   **Perpetual/Margin Trading Module (Live before ETH Denver)**
    
    It’s not news that derivatives protocols own a huge percentage of the TVL on the Arbitrum blockchain. Both **GMX** and **GNS** have been growing non-stop for the last few months, and both have shown that their revenue model is one of the strongest in DeFi. Regardless, both protocols are still desktop-based and have a bunch of onboarding barriers for new users.
    
    Hence, our first and most important native integration will be **GMX** native module. Users will be able to interact with **GMX** using Modular Wallet directly from their phones. All the functionalities will be available and can be used both desktop and mobile simultaneously. (That’s the beauty of self-custody)
    
    On the other hand, users will receive a **10% discount** on trading fees using Modular and, moreover, a fixed-amount of fees generated on our app will be used to market buy **MOD** on a weekly basis.
    
*   **Lendor Contract**
    
    One of the key features being developed at the moment is the **Lendor Staking Contract**. This module will allow the user to stake and earn **MOD** if they contribute and provide **USDC** to the **LP**. The smart contract will automatically lend the **MOD** needed in order to stake on a fixed period of time. Whenever the user wants to withdrawal the **USDC** provided, the smart contract will close the position, return the **USDC** plus the **MOD** rewards earned on that period. The borrowed **MOD** tokens will be burned.
    
    This mechanism will provide more liquidity to the **MOD** token and it will deepen trading operations for buyers/sellers.
    

**Further Developments and Roadmap**

![Developments](https://storage.googleapis.com/papyrus_images/eb2f66ec8e701fe1ce8530f12eba083498b605f1079dbaf4a04583f626174b47.png)

Developments

Our next main step after releasing **GMX** **Perpetual/Margin Trading** module will be the **LendorContract.** In that sense, after it’s accomplished, the **MOD** token circular tokenomics will be almost ready, and the **Modular Framework** will start open-sourcing to new developers. We cannot wait to sum new modules and proposals. Be ready to propose new modules by staking **MOD.**

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*Originally published on [Modular](https://paragraph.com/@modular/mod-token-metrics-incentives-revenue)*