DeMUX (Tokenomics)

A demultiplexer (deMUX) is a device that takes in a single input and forwards to multiple outputs.

The Armada DeMUX program does just that, allowing a single address to take in any number of tokens and subsequently split them amongst multiple addresses or actions.

Building a quality tokenomics model is complex and often requires many changes over time. Moreover, they are typically created and enforced by centralized entities with little to no transparency to external stakeholders. Using DeMUX, organizations can now streamline tokenomics by configuring an instance and pointing all program or service fees to a single address.

It’s also clear that governance participation is extremely low, requiring governance-driven tokenomics to have a low touch solution. Through the DeMUX program, an organization’s tokenomics model will run autonomously until there’s a passed proposal that changes the model or configuration.

Definitions

Action: Additional processing that DeMUX can do prior to distribution.

Supported Actions

DeMUX supports various actions that can be configured to create complex tokenomics systems and flows.

Transfer

Transfers tokens to a given address.

Buy & Send

A simple action that swaps any tokenX for a desired tokenB and then sends the amount to a designated address. This action includes optional oracle price checks with slippage thresholds to mitigate adversaries from executing malicious swaps.

The action supports swapping on any Jup supported DEX.

Buy & Deposit to Armada CLMM

A action that takes tokenX and swaps for desired tokenA & tokenB. Subsequently deposits tokenA and tokenB into the designated Armada CLMM pool and transfers the LP tokens to a desired address. This action includes optional oracle price checks with slippage thresholds to mitigate adversaries from executing malicious swaps for tokenA & tokenB. It also checks that the ratio of tokenA & tokenB is in line with the required ratio for depositing into the CLMM pool.

The action supports swapping on any Jup supported DEX.

Examples

Staking & Governance Integration

The following example combines staking with SPL Governance to create an ecosystem for governance driven tokenomics. The organization has 2 different revenue streams, Trading and Lending, which feed into the DeMUX instance. Those fees are split between various actions, with A% being deposited into the treasury, B% being rewarded to stakers, C% going to increasing protocol owned liquidity.

The organization has integrated the Armada staking program [TODO: Please link to staking docs] with SPL Governance. Stakers now have the ability to propose and vote on proposals to change the DeMUX configuration and thus the tokenomics model.

$COIN Staking Rewards

A simple DeMUX integration that rewards $COIN stakers with more $COIN. Any non-$COIN tokens collected by DeMUX uses the Buy & Send action to convert tokenX to $COIN.

This implementation also takes advantage of the distribution throttle to limit large spikes in the staking rewards. A distribution throttle will limit the amount of tokens sent over a specified time period. Organizations often times have various spikes in fees or revenue. If those were directly fed to staking rewards, prospective stakers would see a large spike in returns. If those