SRM is the governance token for the Serum decentralized exchange.
SRM is a low-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network. This asset is exposed to the underlying risks of Serum, a protocol rated as Watch out.
SRM has a fixed supply.
SRM is moderately correlated to the overall market.
Holding SRM token offers users several benefits such as lower trading fees. Active traders on Serum receive fee rebates based on their holdings of SRM in a tiered system. Users can also stake SRM to get a portion of transaction fees.
The total supply of SRM is capped at ~10B tokens. Serum launched with 10% of all SRM tokens unlocked. The remaining 90% were fully locked for the first year and then unlock linearly over the next six years. The initial token distribution is as follows: 20% to team and advisors, 22% to project contributors, 4% to locked seed and auction purchasers, 27% to partner and collaborator fund, and 27% to ecosystem incentive fund.
SRM accrues value from its utility within the Serum ecosystem, governance to vote on protocol parameters, and deflationary pressure. Serum collects fees on each trade. It uses 80% of these fees to buyback and burn SRM tokens to drive deflationary pressure on the token supply. Staking SRM also allows users to gain access to lower fees and 20% of all transaction fees generated by the platform.