What is Farming Rewards?
Understanding Distrix's Farming Pool rewards and how they work within the ecosystem.
Farming Rewards Overview
How Distrix incentivizes farming providers
Distrix allocates 20% of all block rewards to the Farming Pool, ensuring there's always incentive for users to provide liquidity to the ecosystem. This is a critical component of the Distrix tokenomics model, as it helps maintain healthy markets and trading activity.
Block Reward Allocation
From each block mined on the Distrix blockchain, 0.20 DSTX (20% of the total 1.00 DSTX block reward) is allocated to the Farming Pool.
How Farming Rewards Work
The mechanics behind the Farming Pool
Providing Farming
Users provide liquidity to designated pools by depositing DSTX paired with other cryptocurrencies. This creates trading pairs that allow for smooth exchange operations.
Reward Distribution
Farming providers earn a share of the 0.20 DSTX per block allocated to the Farming Pool. These rewards are distributed proportionally based on each provider's share of the total farming contribution.
Sustainable Model
Like all block rewards in Distrix, farming rewards follow the Diminishing-Yearly Model, decreasing by 12.5% each year to ensure long-term sustainability.
Benefits of Farming Rewards
Why the Farming Pool matters
Market Depth
Incentivized liquidity ensures deeper markets and more efficient price discovery for DSTX tokens.
Price Stability
Increased liquidity helps reduce price volatility and slippage when trading DSTX.
Additional Income
DSTX holders can earn passive income by providing liquidity, beyond just holding the token.
Ecosystem Growth
A healthy liquidity ecosystem attracts more users, developers, and projects to build on Distrix.