The Roles, Utilities, and Tokenomics of Comdex’s Native Token, $CMDX.

Samson Anthony
4 min readFeb 28, 2023

Comdex has a string of DeFi products that offer different services and they share the following in common:

● They are built by Comdex,

● They are created for the Cosmos ecosystem, and

● $CMDX is the governance token used to make decisions on these products.

$CMDX is the native token of the Comdex network and plays a significant role in the fulfillment of the Network’s vision of the democratization of finance.

Let’s take a look at the roles $CMDX plays in the Comdex ecosystem.

What are the Roles of $CMDX?

1. Securing the Comdex Network.

$CMDX is the power engine of the network. $CMDX is used to pay transaction fees and to stake.

AS a PoS network, validators stake $CMDX to be able to run nodes and secure the network, which keeps it running.

2. Collateralization and Asset Trading.

On cSwap, $CMDX can be swapped for other IBC tokens and can be traded.

On Commodo Finance, $CMDX can be lent, borrowed, and used as collateral.

On Harbor Protocol, $CMDX can be deposited to mint $CMST stablecoin.

3. Issuance of Rewards.

$CMDX tokens are used as rewards for every participant who engages in reward-bearing activities in the Comdex ecosystem such as providing liquidity, lending, depositing to mint $CMST, etc.

4. Governance

Holders of $CMDX can exercise power in making some crucial decisions across all dApps in the Comdex ecosystem. Decisions like synthetics whitelisting, and collaterals that can be used on the network can be voted on by every $CMDX holder.

Now we know what roles $CMDX plays in the Comdex ecosystem, let’s look deeply into its utilities and how they are implemented on the system.

CMDX Utilities

1. Liquidity Pools

CMDX tokens can be used to create liquidity on DEXes and generate rewards, which is useful to the growing Comdex network.

By providing liquidity, the decentralized exchange where the Liquidity Pools is can fulfill its users’ swap requests of $CMDX smoothly and quickly and with very minimal slippage.

Note: The pool rewards are generated from swap fees and inflation put together and are paid daily in the native token of the DEX.

$CMDX tokens are launched for liquidity provision on cSwap DEX and Osmosis DEX.

2. Staking

Staking is somewhat similar to Liquidity Pools. However, what differs is that in this utility, $CMDX holders delegate their tokens to validators that secure a PoS network and in the period, rewards are accrued.

Note: Rewards are generated through inflation and as Comdex’s user base grows, they will be funded by the platform’s fees.

Users can stake their $CMDX tokens on any of these validators and they include.

• Cosmostation; https://www.cosmostation.io/

• Omniflix; https://www.omniflix.network/

• Unagii; https://www.unagii.com/

3. On-Platform Utility/Governance

Every holder of $CMDX tokens has the right to contribute to the community by sharing their views and voting for certain decisions that should be made on the ecosystem.

$CMDX Token Distribution

The Comdex team built the CMDX token as an inflationary token.

The maximum supply of the tokens has been capped at 200,000,000 CMDX. In the first year, the inflationary rate is set at 30%. Then in subsequent years, a reduction of 25% will be made on each inflation rate.

For a start, only 100,000,000 CMDX was minted and in the next 48 months, fractions of the supply will be released into circulation via the following distribution:

1. Airdrops

This is 12.5% of the initial minted tokens which is 12,500,000 CMDX and it has been fully distributed.

The airdrops were used to increase awareness around the globe and in different communities and to encourage the adoption of the network.

2,500,000 CMDX was distributed as airdrop on the initial listing and after every next 3 months, 2,500,000 CMDX was distributed till the initially allocated cap was reached in September.

2. Rewards

25% of the initial maximum cap (25,000,000 CMDX).

This part of the distribution is allocated to every user who engaged in Comdex’s ecosystem for rewards, such as performing crucial functions, engaging in liquidity pools, and staking.

At listing, 5,000,000 CMDX of the allocated supply will be unlocked. Subsequently, the unlocks will be done as follows:

• 3,000,000 CMDX for the next 2 quarters.

• 2,000,000 CMDX, the next 4 quarters.

• And lastly, 1,000,000 CMDX for the next 6 quarters.

3. Community Development Fund

Another 12.5% of the initial maximum cap (12,500,000 CMDX).

This part will be used to fund the development of new dApps in Comdex’s ecosystem and to incentivize every expert involved in the development.

After 5% of the sum is unlocked on listing, 5% will be released after every quarter till it reaches the allocated initial cap.

4. Treasury

25% of the initial maximum cap (25,000,000 CMDX).

This part will be used to fund and maintain the daily operations of the Comdex protocol.

After listing, 5,000,000 CMDX will be released and subsequently, 1,250,000 CMDX will be unlocked after every quarter until the 48th month.

5. Team and Advisors

25% of the initial maximum cap (25,000,000 CMDX).

This part of the distribution is allocated to the team members and advisors of the Comdex network.

It will be released over 3 years, with a 12-month cliff from Token Generation Event (TGE), and unlocked monthly for the next 24 months.

You can read the full details of the $CMDX tokenomics here

Track CMDX’s information (market cap, volume, and minute-by-minute market data) on CoinMarketCap and CoinGecko.

About Comdex

Comdex is a DeFi protocol built on the Cosmos blockchain network. This protocol focuses on bridging the gap between centralized finance and decentralized finance in a bid to democratize world finance and enable seamless and endless capital flow from CeFi to DeFi.

Comdex develops possible solutions for the decentralization of finance (DeFi) to unlock access liquidity to major commodity debt and derivative assets and other IBC assets.

For more insights, follow the Comdex network via the following links.

Website: https://comdex.one/home

Twitter: https://twitter.com/ComdexOfficial

Medium: https://blog.comdex.one

Discord: https://bit.ly/ComdexOfficialDiscord

Telegram: https://t.me/ComdexChat

Reddit: https://reddit.com/r/ComdexOne/

Newsletter: www.comdexnewsletter.com/subscribe

Academy: https://academy.comdex.one/

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