Accessing Ardana’s special features is done using the “secondary” token - exDANA.
exDANA holders are entitled to participate in governance, receive a pro-rata share of the protocol revenue, and enjoy an increased DANA APY received from eligible participation in Ardana’s liquidity mining programs.
exDANA is not tradeable or transferable and users can only obtain exDANA by time-locking DANA.
The exchange rate between $DANA and exDANA increases linearly according to the lock time, up to a cap of 4 years. Below is the formula for calculating the exchange rate between DANA and exDANA where w is the output exDANA amount, t is the lock time, and tmax is the maximum lock time.
The exDANA balance for a given wallet for a given “lock event” decays at the same linear rate, therefore users who wish to at least maintain their exDANA balance will have to constantly lock more $DANA, which can be obtained either from direct, incentivized, supply-side participation or by purchasing it on the open market.
As Ardana transitions to a DAO governance structure, exDANA will serve additionally as a governance token, whereby 1 exDANA = 1 vote thus tying economics & governance.
The rationale of giving governance and economic privileges to exDANA holders according to the method described above is that it rewards long-term participants in the protocol and that it heavily disincentivizes users from maliciously exercising their voting power.