RNIK represents Tokenik’s reward token and is an utility token.
Users earn RNIK rewards after interacting with Tokenik DApps, like the Tokenik DEX.
Users will earn 1% of the dollar trading value back in RNIK trading rewards. Every time a swap is made on a pair that was marked as qualified, 1% will be paid back in the user’s Tokenik rewards wallet balance, available on the Tokenik platform. What are the qualified pairs? All the pairs that have at least 1 stablecoin as one of the tokens in the pair and have been market as qualifying by Tokenik management. This ensures the trading rewards are only distributed to trustworthy and verified projects. You’ll recognize these pairs by the qualification icon displayed next to the pair.
Ex: swapping $1000 USDC into ETH will grant the user $10 (1%) in RNIK rewards.
The RNIK rewards are being immediately credited to the user’s balance on Tokenik.
Users can earn the RNIK rewards by becoming a liquidity provider or getting involved in marketing activities.
During Tokenik v1 implementation, the RNIK tokens exist only as a balance on the Tokenik app, and with the launch of Tokenik v2 these tokens can be minted into ERC-20 tokens. During v1, 1 RNIK will have the equivalent value of $1.
During v1, the RNIK tokens can be used to cut down on trading fees or they can be staked for additional interest.
With the launch of Tokenik v2, the accumulation and distribution phase for the trading rewards ends as per Tokenik v1 schedule and users can convert their accumulated rewards into actual (minted) RNIK tokens.
Trading rewards will be exchanged into actual RNIK tokens at a 1:1 value ratio.
Ex: if you held $100 worth of trading rewards (100 RNIK rewards) you will receive $100 worth of RNIK tokens at launch price.
Users will be able to withdraw their tokens to their crypto wallets and trade the RNIK token at Tokenik v2 launch.
With the launch of Tokenik v2, a percentage of the protocol fees will be used to buyback RNIK tokens from the market; future NIK token holders earnings being paid only from bought-back RNIK rewards as part of protocol’s sustainable tokenomics.
Note: regardless of future Tokenik v2 post launch RNIK trading price, users will always be able to use RNIK tokens inside the Tokenik Ecosystem at a minimum of $1 valuation.
Ex: if 1 RNIK trades at 50 cents, inside Tokenik DEX users will still be able to cut down $1 worth of trading fees by using 1 RNIK token.
RNIK will have a maximum total supply, that number being locked in place at the time Tokenik v2 is being launched. After that moment, no new RNIK tokens can be minted.
When RNIK tokens are used inside Tokenik DApps, those used tokens are burned.
Ex: using RNIK tokens to cut down on trading fees will permanently burn those used tokens.
Thus, once Tokenik v2 gets launch, RNIK becomes a deflationary token, as no new tokens can be minted and the protocol can only burn the tokens that are being used.
For more information on the RNIK token please check: https://tokenik.com/rnik-rewards/