Instadapp Proposes Rebrand and New Tokenomics Following Fluid Launch

Instadapp wants to rebrand following the blazing success of its Fluid protocol.

On Dec. 3, Instadapp published a proposal to its governance forum outlining plans to rebrand, restructure its governance and tokenomics, and launch incentives designed to bootstrap the adoption of its recently launched dApp, Fluid.

The proposal calls for rebranding Instadapp to Fluid, migrating INST tokens to a new FLUID asset, and earmarking 12% of the project’s treasury to finance growth initiatives.

“The vision for Fluid is to establish itself as the Liquidity Layer for the entire DeFi ecosystem,” Instadapp said. “To support this vision, this proposal aims to restructure governance and tokenomics to recognize Fluid’s impact on the DeFi space and align interests with long-term token holders.”

The proposal has received early support from community members.

The price of INST is up 18.4% over the past 24 hours, according to The Defiant's crypto price feeds.

Fluid

Fluid combines money market vaults with a decentralized exchange to facilitate trading, borrowing, and lending from a single dApp.

Instadapp said Fluid has already processed more than $1 billion worth of trade volume just three weeks after launching, positioning it as the third-largest decentralized exchange (DEX) on Ethereum despite hosting only three asset pools. Its wstETH/ETH pool and cbBTC/WBTC boast the largest volume and total value locked for the pairings on Ethereum.

Looking ahead, Instadapp plans to expand Fluid to support derivatives, real-world assets, interest rate swaps, and foreign exchange markets.

Fluid currently boasts a total value locked of $579.3 million and hosted $126.3 million worth of daily trade, according to DeFi Llama.

Incentive program

Instadapp said it wants to grow Fluid’s market to $10 billion by late 2025.

To promote growth, Instadapp proposed allocating up to 0.25% of FLUID’s supply to incentivize stablecoin lending and up to 0.25% of supply to incentivize Fluid DEX users each month.

Instadapp noted that its governance has retained 43% of its treasury assets, owing to a conservative fiscal management strategy. Given Fluid’s rapid growth so far, Instadapp believes that offering incentives could propel Fluid to a market-leading position, adding that the protocol is already on pace to become Ethereum’s second-largest DEX by 2025.

“Now is the time to deploy these resources to unlock Fluid’s full potential and propel DeFi innovation,” Instadapp said.

An additional 5% of FLUID’s supply would be used to seed FLUID liquidity on popular decentralized exchanges.

The proposal also calls for allocating 12% of the project’s treasury to promote Fluid’s growth, including 2% for exchange listings, 2% for market making, 5% for fundraising campaigns, and 3% for team growth and related initiatives.

Algorithmic buybacks

The proposal also calls for introducing an algorithmic buyback mechanism that would activate once Fluid has surpassed $10 million in annualized revenue.

The share of fees used to buy back FLUID would adjust based on market performance, with a small percentage of revenue being mobilized when prices are high, and up to 100% of earnings being allocated to buybacks when prices are low.

“All tokens bought back will be kept in the treasury, and governance will decide how to use them — whether to burn them, distribute them to holders, or reward users,” Instadapp said.