Onion Mixer is the first decentralized protocol for anonymous cross-chain transactions. It not only innovatively adopts the “Anonymous Transaction + DeFi” model, but also combines CoinJoin and Zero Knowledge Proof. It will soon support anonymous token transactions on multiple public chains such as ETH, BSC, HECO, TRC, etc. By enabling liquidity mining, holding mining, and anonymous transaction mining, it is able to provide users with additional revenue and at the same time guarantee premium anonymous transaction services.
Onion Mixer was officially launched on June 24, 2021. Due to its excellent tokenomics, on the first launch day, the volume of coin mixing exceeded all its competitors in the market, and the figure reached $300 million in about 10 days. It is currently the project with the easiest operation, fastest growth and best anonymous effects in blockchain.
To foster a virtuous community development and strengthen the market deflation and value management of the ecological token OMT, Onion Mixer launched the first phase of DAO community governance voting on July 10, 2021.
The voting weight is based on the number of staked tokens OMT in Vault. The more OMT held, the greater the voting weight. Through the first DAO community governance proposal, Onion Mixer has improved its deflation mechanism and thereby maximized community members’ interest. The original tokenomics under which 50% of the transaction fee would be used to repurchase and reinject LPs into the LP pool is now replaced with a new mechanism that will use the fee to directly repurchase and burn OMT tokens.
The proposal received unanimous approvals. With this proposal, Onion Mixer will greatly improve OMT’s deflation and after reducing the official LPs injected into the LP pool, users will enjoy a higher return, making OMT’s value growth more healthy and stable. Besides that, immediately after the proposal, Onion Mixer completed a community repurchase and burn over 30 million OMT tokens.
Due to the success of the first DAO proposal, the community’s second proposal involved more aspects, including the rewards for block generations, dynamic mining reward calculations, and cross-chain Polygon.
To be more specific, the second DAO proposal was made at the suggestion of the community to reduce Mixing mining revenue, cut Mixing mining rewards, and discourage mining-and-dumping behaviors, which will maximize the benefits to the loyal community users of the LP pool.
The proposal received an actual support rate of 93.91%. After this proposal, the block rewards for Mixing mining are reduced by 80% and the APY stabilizes at 240%, which is still higher than most Defi projects in the market. Meanwhile, the mining time for OMT is extended from 6 years to 30 years.
In the third DAO proposal, the community proposes that “if the daily transaction volume of Onion Mixer falls below a certain level, the mining share of Mixing will be cleared and the users will re-start the mining from scratch”. The significance of this proposal is that it effectively addresses the issue of old users’ no-cost mining enabled by historical transactions and reduces the actual cost for new users to participate in Mixing mining.
The fourth community proposal proposes that the first cross-chain Onion Mixer will deploy is Polygon. With more than $5.4 billion TVL on Polygon, there is a huge market demand for both coin mixing and transactions. By actively participating in Polygon, Onion Mixer will attract more funds. After its deployment, Onion Mixer will start a new round of Mixing mining and LP mining, which will be open to both and all new and old users. The community member also voted on dividing mining rewards after the cross-chain deployment, most of whom voted on 50% rewards sharing with Polygon.
Upon deployment, OnionMixer will create a cross-chain bridge between Polygon and BSC. The addition of Ploygon will bring more ecological value to OnoinMixer by advancing OnoinMixer’s ambitious vision of building a privacy-protection infrastructure and enabling privacy transactions for multi-chain assets in Defi.
In the fifth proposal, OnionMixer improves Mixing mining’s positioning as a “cheaper way to get OMT”. Instead, it introduces more aggressive penalty scheme that greatly limits the amount of mining revenue that can be withdrawn. This move will reduce OMT selling pressure in the market and reduce the phenomenon of mining-and-dumping.
Finally, the community voted on whether to reduce or eliminate the right to receive dividends after users sell Mixing mining token rewards. It was the first time that the community propsoed to cancell all bonus and received overwhelming support.
Through the five DAO community proposals, Onion Mixer’s tokenomics has been greatly improved. It has not only effectively solved Defi’s common problem of “mining-and-dumping”, but also enhanced the income of loyal users by diversifying their income channels. At the same time, Onion Mixer does not forget new joiners. It has lowered the threshold for them to participate in Mixing mining, and provided cross-chain deployment for more crypto fans. OnionMixer has even set up a restart mechanism for Mixing mining.
The intensity, speed and effectiveness of OnionMixer’s DAO governance are rare in the entire Defi field. This DAO mechanism greatly enhances the community’s confidence and protects the interests of loyal users, making Onion Mixer a step further toward its grand vision of being the infrastructure for privacy transactions of multi-chain crypto asset.