Read below to understand more about our rationale and methodology.
Why DVF no longer serves our Community and our Product
DVF was initially launched as the governance token for DeversiFi, which began as an orderbook DEX in June 2020. Designed to support governance and community incentives around this revenue model, DVF has become less relevant as the DeFi world evolved. Over the past four years, DeversiFi pivoted to become rhino.fi, focusing on lightning-fast cross-chain bridging and deprioritizing the DEX. With most of rhino.fi’s operations now off-chain, the original governance mechanism has become outdated. The current DVF holder base has little overlap with our present users, and the governance model, although promising in 2021, has proven ineffective across almost all governance tokens.
This misalignment is evident in the market’s lack of response to DVF, despite rhino.fi’s tremendous growth in the last year. Combined with the current sluggish DeFi market conditions and lack of investor confidence in new token launches, it became evident that repurposing the DVF token would not be the most effective path forward.
Given these considerations, rhino.fi has decided to offer holders the ability to exchange DVF for USDT. We believe that offering this token exchange for USDT, 50% above the current market value, is the best way to reward the loyalty of our long-term token holders while allowing future flexibility to develop our growth strategy for rhino.fi.
Current State of DVF
At the time of this announcement (3pm UTC+1 7th August, 2024), the DVF distribution was as follows:
60% held undistributed by DVF DAO27% held by rhino.fi Labs13% in public hands
One small airdrop was deployed in 2021 to users of DeversiFi, which increased the circulating supply and is included in the 13% of tokens currently circulating.
All of the circulating supply of DVF will be exchanged or burned during the claim window.
Methodology for Token Exchange
To ensure fairness and prevent arbitrage trading or front-running on this announcement, the rhino.fi team has taken the following steps:
Initial Snapshot: All holders as of 9am UTC+1 7th August 2024 are eligible.
Announcement: Communication shared to our entire community across all channels.
Liquidity Removal: All liquidity across DVF markets removed in line with the announcement (including Bitfinex, rhino.fi, Uniswap, Syncswap). This is to ensure no arbitrage traders could benefit at the expense of our community.
Governance Proposal: In line with the announcement, a proposal was submitted to the DVF DAO. The proposal can be read in full here. In summary, it suggests we:
Burn all DVF held by the DAO.
Convert ETH holdings to USDT, and transfer all USDT to the exchange contract, which will buy DVF at $0.70 and then burn all DVF that it buys.
As the proposal will take 7 days to complete governance through the DAO, rhino.fi Labs has already funded the claim contract in anticipation of initial claims.
Claim Site Live: Claims will be live at 3pm UTC+1 on 9th August 2024 and remain open until 9th October 2024.
Commitment to the Future
We are excited about the future and look forward to growing rhino.fi together with our users and community. The USDT exchange is a testament to our commitment to our original token holders, ensuring their loyalty is rewarded. The rhino.fi team is dedicated to creating a product that delivers real value for our community today and in the future.
For any questions or support, please reach out to our team.
Check back on the 9th of August to claim your USDT.
Conclusion
In conclusion, the decision to repurpose the DVF token reflects our commitment to adapting to the changing landscape of the DeFi industry. By offering holders the opportunity to exchange DVF for USDT, we aim to both honor the loyalty of our long-term supporters and pave the way for the future growth and development of rhino.fi. We urge our community to participate in the token exchange process and look forward to a brighter future together.
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