AMPED is fundamentally a governance token, conferring holders the ability to influence the direction of the platform. AMPED holders can vote on proposals or parameter changes, such as adjusting fee distribution percentages, onboarding new collateral assets into ALP, modifying leverage limits, or initiating partnerships and upgrades. Amped plans to transition into a more community-driven DAO structure where significant changes are decided through on-chain governance votes by AMPED stakeholders.
One of the primary utilities of AMPED is staking. Users can stake their AMPED tokens in the protocol to participate in the platform and provide liquidity to support swaps of digital assets. AMPED stakers receive rewards in the form of:
Platform Fee Rewards: AMPED stakers receive rewards from the pool that contains a variety of network base currencies, funded by swap fees, leverage trading fees, and other protocol revenues.
Escrowed AMPED (esAMP): Qualifying stakers who have fulfilled engagement criteria are granted escrowed AMPED tokens as a loyalty reward. esAMP vests over time and incentivizes long-term participation.
Liquidity providers (ALP holders) also benefit from the AMPED tokenomics. ALP stakers receive a portion of fees and earn esAMP rewards, creating a pipeline where LPs eventually become vested AMPED holders, further aligning LP incentives with the long-term governance and success of Amped.
Beyond governance and staking, AMPED provides additional benefits within the Amped ecosystem:
Fee Discounts: Potential reduced trading fees or improved referral rates for AMPED holders
Access to Features: Gated access to advanced features, higher leverage tiers, or early access to new chain deployments
Activity Rewards: Contributors who provide valuable services to the ecosystem and stake AMPED may receive rewards from the platform’s fee-funded reward pool