What is DUST Protocol?
DUST is an SPL token on the Solana Blockchain that was revealed on January 2nd 2022. It’s the fuel that powers the entire DeGods Ecosystem and is designed to be a sustainable, long-term utility token.
In summary, DeGods is a Solana NFT collection comprising 10,000 degenerates, punks and misfits. The project is well known to experiment with mechanisms and give holders long-term value. DUST is one of their experiments. For more on DeGods, check out Simply Explained: DeGods
How is DUST mined?
A user must either have a DeGod or a DeadGod to mine DUST through staking. Currently, a DeGod can mine 5 DUST a day, whereas a DeadGod can mine 3x that yield (15 DUST a day).
Users can also burn their DeGod to receive a 1000 DUST + rarity score, which determines how rare a DeGod is by what traits they have (current supply – rarity rank).
DUST was created with a starting supply of zero, and the max supply is 33,300,000 $DUST. There will be three halving periods, which means the rewards of mining DUST will be reduced by 50%. By minimising the rewards, the supply of new DUST can cause the price to increase if that demand stays strong. The first halving has already occurred.
After the first halving, the rewards for mining DUST are reduced by 50%, so a DeadGod will now earn 15 $DUST per day, and a DeGod will now earn 5 $DUST per day.
Where is DUST used?
DUST is being integrated as a significant utility within the Solana Ecosystem and is now featured in quite a few major projects.
Here are a few examples:
Dead your DeGod – it currently costs 1236 $DUST to upgrade your DeGod to a DeadGod.
Magic Eden – a Solana Marketplace that integrated the use of DUST for some of its mints. DeGods and Magic Eden are working to introduce DUST as a payment option for NFTs on the marketplace.
y00ts – a new Solana collection created by the DeGods team and minting will cost 375 $DUST.
DeGod Dustie Store – DUST is used for raffles or auctions of NFTs, whitelist spots etc.
Famous Foxes Rafffles – DUST is one of the most popular tokens on this platform and is used as the main currency for NFT raffles.
Where does the DUST go?
Within the internal economy of DUST, DUST is sent to the DeDAO Treasury; it’s used to maintain a healthy supply for burning and liquidity pool needs. DeDAO currently holds 8,080,731 or 38% of the DUST that has been mined so far.
The diagram below shows how DUST is re-utilised in the treasury and whether DeDAO uses the DUST to buy and auction Blue-Chip NFTs or reward Community Members.
DeGods also charges a 9.99% fee when a DeGod sells on secondary marketplaces. This fee splits into two: the DeDAO Treasury receives 6.66% of that sale, and the core team receives 3.33%.
How do you get DUST if you don’t hold a DeGod?
One way of purchasing DUST is to use Raydium DEX. This platform allows you to buy DUST using Solana in your Phantom Wallet.
Another option is to swap your tokens using Raydium Swap. The most popular token swaps are SOL, USDT or USDC. Click here (link) for our tutorial on how to use Raydium.
Since its launch, DUST has seen a lot of adoption within the Solana Ecosystem, as many NFT projects are starting to mint using DUST rather than SOL.
Many Solana DAOs hold DUST to gain Duppie’s Whitelist Allocation for their holders. Once the mint occurs, will we see a mass dump of DUST circulating back into the supply, potentially causing a crash in price? Or will Frank and his team find a way to avoid this?
Want to learn more about DeGods and DUST? Read Simply Explained: DeGods.
Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.