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

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

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

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.

In resemblance with medieval society, we are at a key inflection point of modern economy. A Dragon King event it’s closer than we think. For all of you that are not familiar with the term: A 'Dragon King' event is a catastrophic occurrence that falls far outside a normal expected probability. The name comes from looking at the wealth distribution in a medieval society. Similar to recent cryptocurrency events, we’re getting closer to this.

One of the fundamental pillars of cryptocurrency is decentralization. Wallets have and always will be the first adoption building block between the blockchain and potential crypto users. As it should always have been, self-custodianship is key. The hybrid crypto-wallet model has shown weakness and is falling to pieces. We are committed to build the next-generation tools for mass adoption.

Hence, Modular Wallet. Within the features already mentioned, you’ll be able to:

(1) Send and receive payments to anyone, anywhere.

(2) Cross-chain swaps: enables trading tokens across different blockchains without using an intermediary party.

(3) Open-source modular framework: each user or developer could make a custom setup for their wallet, choosing alongside different modules provided from the Modular Team, or building their own.

(4) Custom RPC: Using Helios, a fully trustless access to Ethereum is possible. Choose your own node. More resilient, more anonymous.

(5) Modular Token: The main objective of the MOD token is to reward our users by using the different features available within the app. In the particular case of swaps, for instance, the fees will be automatically used to provide liquidity to the MOD/wETH LP on UNI-V3. On the other hand, for future block builders, rewards and grants will be allocated in a fixed-MOD amount per module.

Overall, the Modular Wallet concept will be a continuous transition to a Smart Contract Wallet (SCW) approach. SCWs enable streamlined access to decentralized protocols and apps, thereby helping to onboard a new generation of global DeFi users. Bundled transactions, private-key-less auth, and many other features are already being developed by our team. Smart wallets help simplify DeFi.

Probably many of you are wondering… Wen token launch? Stay tuned on the 15th of December… And for tokenomics and details you’ll just have to wait for Part 2 of this amazing journey.

Yours truly,

Modular Team

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