🪙NEO LP token (Liquidity Provider Token)

The NEO LP token plays a unique role in our DAO, representing a financial stake in the organization.

The best way to replenish the NEO DAO treasury is by minting LP tokens through public or private offerings.

To aid in understanding, we will compare a NEO LP token to those offered on DEX exchanges. NEO LP tokens are used to track individual contributions to the NEO DAO treasury, as the number of NEO LP tokens held corresponds proportionally to the share of liquidity in the NEO DAO treasury.

Here's a simple formula for the NEO LP token price:

The NEO LP token has a unique role in our DAO. It represents a financial stake in the organization.

The best way to replenish the NEO DAO treasury is to mint LP tokens through public or private offerings.

To facilitate understanding, we will compare a NEO LP token to those offered on DEX exchanges. NEO LP tokens are used to track individual contributions to the NEO DAO treasury, as the number of NEO LP tokens held corresponds proportionally to the liquidity share in the NEO DAO treasury.

Here's a simple formula for the price of the NEO LP token:

DAO AUM / Circulating Supply of LP Tokens = Value of 1 LP Token

In terms of technical features, NEO LP tokens are not much different from other tokens on the same network. Like any other BEP-20 token, these NEO LP tokens can be transferred, traded, and paired with another token on a DEX.

The relationship between NEO LP tokens and the proportional share of a NEO DAO AUM (asset under management) is most commonly used in at least two cases: To determine the liquidity provider's share of NEO DAO;

To determine how much liquidity is returned to liquidity providers from the NEO DAO AUM after they decide to burn their LP tokens. Determine how much the liquidity provider should receive at the time of dividend distribution.

NEO DAO can make decisions on further release of the LP token to the exchange, can organize stacking of the NEO DAO LP token. It is important for NEO DAO participants to understand that the LP token is fully protected by the NEO DAO treasury, until the token is exchanged in an external exchange.

It is also important to note that the value of the LP token is also strongly correlated to the number of users of the NEO X Super App, similar to the NRT utility token.

Use case of the LP token: We reveal in detail how to use the NEO LP token in our use cases. In general, LP tokens are needed to effectively raise funds for the DAO from DAO members or external investors. Because NEO LP tokens are heavily tied to the formula, we will be very careful NOT to increase the percentage of investors who purchase LP tokens by directly transferring funds to the NEO DAO account without buying LP tokens.

We sell LP tokens through private sale, public sale, and through the launchpad.

At the point when NEO LP tokens are sold in a private or public sale or through the NEO DAO Launchpad, it is forbidden to generate profits or contribute additional money through direct transfer to the NEO DAO address. Otherwise, shares will be diluted, and some investors may get more money by burning LP tokens than what was invested.

Only after the fundraising is completed and all private, public, and launchpad offerings are closed, NEO DAO can begin the process of generating profits.

It is prohibited to generate profits or contribute additional money through direct transfers to the NEO DAO address. This is because otherwise the shares will be diluted and investors may receive more money by burning LP tokens than what was invested.

The figures and information provided are approximate and for informational purposes only. They do not constitute a guarantee of income. Please note that all investments carry a risk and past performance is not indicative of future results. Investing in NEO DAO or any other investment opportunity carries a risk and potential investors should conduct their own research and seek advice from a financial advisor before making any investment decisions.