Kriptoks

Diffusion is a decentralized exchange (DEX) that operates as an Automated Market Maker (AMM) protocol and liquidity pool. The platform is designed to enable efficient trading between different crypto assets while capturing trading fees as revenue for liquidity providers, resulting in a decentralized market and trading experience.

Built on Evmos, an Ethereum Virtual Machine (EVM) on Cosmos, Diffusion leverages the Cosmos SDK to enable use cases around composability, interoperability, and fast-finality. Evmos unlocks the potential of combining smart-contract-based applications with the specific capabilities of other Cosmos chains, bringing a new set of applications and protocols to the Cosmos space.

Diffusion leverages decentralized liquidity pools instead of using a traditional limit order book to facilitate trades. The protocol's services are entirely open for public use, and the team has no ability to selectively restrict access. Anyone can swap, provide liquidity, or create new markets at will.

The $DIFF token is a crucial part of the Diffusion protocol, helping to coordinate and align incentives of all stakeholders. Ultimately, Diffusion is designed to become the main liquidity hub for Evmos, with DIFF as a token to maintain and govern the protocol by the community of its users and builders.

The supply of $DIFF will be 326,515,151 million tokens. Liquidity providers should have a strong voice in the governance of Diffusion to ensure that their interests are aligned with the tokenomics of the platform. This is why the incentives derived from the $DIFF token should be distributed over time to the right governance participants.

Staking $DIFF in the xDIFF pool provides stakers with rewards from protocol revenue. The protocol will initially release 50 million $DIFF at genesis, split evenly between airdrop recipients and a strategic reserve. Based on the "thirdening" schedule, new tokens will be released every day. The token issuance will be cut by a third every year, with a total of 250,000 daily tokens released.

The release of newly minted tokens will follow a specific distribution model. In the first year, starting from the token launch date, there will be a total of 91,259,000 tokens released. After 365 days, this will be cut by a third, resulting in a total of approximately 61 million tokens released in year 2, around 40 million in year 3, and so on.