T2T2 product analysis: How to create a Token flywheel through decentralized copy trading?

On November 7, the T2T2 decentralized copy trading product officially started internal testing, and a group of top traders have begun to settle in, including institutional traders,BinancecontractTop of the single win rate list, telegram bot team, etc.

Judging from the traders who have settled in so far, T2T2’s order-following room is strongly tied to Twitter, so before users choose whether to pay to follow orders, they can check their trading level on Twitter or other public channels.

We can understand the social logic behind it from the formula in the v1 white paper released by T2T2:

T2T2 v1 Whitepaper

in:

• S represents the number of KEYs, which is derived from the social model of Friend Tech. The more people participate, the more the host willmake money, those who participate earlier also make more money.

• ROIIt is the net value of the fund with single currency speculation, in Tugou,Blue ChipAt this time of rapid development, it is normal for Crypto to have extremely high ROI.

• Fee means handling fee, which is the profit given to the homeowner.

• The constant term of 0.01 is to preventbot

Crypto users have simple needs, they need simplicity and get to the essence. When the market takes off, everyone is just thinking about 0 wool, rushing to the local dog/ambushing blue chips/openingcontractTo get rich quickly, or to play pvp games with other players, rather than chatting for social purposes.

On-chain ROI ranking on T2T2

T2T2 has started a new exploration in social models, giving up satisfying users’ so-called upward social needs and turning to more fundamental asset-based ones:Helping users to follow orders in transactions, starting from DEX, and expanding to contract DEX in the future, everything is on the chain.Regardless of whether Friend.tech launches itsToken, will not affect the T2T2 model and user network.

At the same time, T2T2 also released the Tokenomic model, which introduced a new token flywheel based on the latest copy trading model. Its core is: In addition to following orders, ordinary users can alsoarbitrageSubsidize and share the inflation gains across the system.Xiaobai Navigation

As you can see, on the left is the logic of the user's normal order with the homeowner. The homeowner can configure an index fund, or partially or fully configure $T2.

Then the operating logic of this flywheel is very clear:

• When the price of T2 rises, the ROI of following orders will be very high, which will further attract users to follow orders and contribute to TVL transaction volume, and then the transaction fees will be returned to the host and the platform. This constitutes the first flywheel, through price increases, the income of the host and the platform will increase, thus providing value support for the increase in T2.

• When the platform fees and host income increase, the host will allocate more T2 positions, because this can help increase the ROI and TVL of his room. Moreover, the larger the allocation ratio, the faster the T2 price will rise, and the higher the inflation incentive shared by the participating copycat users, so this constitutes the second flywheel.

Stimulated by these two flywheels, the KEY held by early users can also gain rapid growth, and users who discover high-quality traders early on can also earn KEY gains from subsequent single users.

Regarding the second flywheel, the inflation incentives and examples in the white paper are clearer:

This part of the content can be translated as follows: inflation incentives are linked to the system's handling fee (TVL). The higher the system's handling fee, the more inflation incentives will be divided. More importantly, it is strongly related to the proportion of T2 holdings in the room. The more T2 holdings, the longer the room follows orders (the more accumulated block rewards), and the greater the inflation incentives obtained. More extreme, when the room coefficient is 100%, all inflation incentives are evenly distributed to T2 holding rooms. That is, based on this redistribution mechanism, the income of the entire system is transferred to the T2 room, and the inflation incentive is 0 for rooms without T2 configuration.

In the fifth chapter of the white paper, the platform calculated inflation incentives, which are unlocked linearly over 365 days. So from the perspective of the inflation model, in the first 3-6 months, it is basically at a deflationary level, which will stimulate the early flywheel operation.

In general, the design of T2T2 is relatively novel and has its own moat. Whether for homeowners or retail investors, participating in T2T2 is equivalent to participating in Friend Tech + TG bot + ve(3,3) + contract orders at the same time, and in the process of participation, the user's network will gradually grow.

The article comes from the Internet:T2T2 product analysis: How to create a Token flywheel through decentralized copy trading?

Related recommendations: September Market Outlook: On-chain liquidity and catalysts at a glance

It’s no surprise that Arbitrum is the clear winner here, with $83 million bridged to the ecosystem in the past week.cryptocurrencyOne of the worst months in the industry, and this month has proven no different so far, with…