Swapping Tokens? How does Liquidity Providers Benefit from It?

Many of us wonder why there's such swap pairings for Arcade Colony's token like COLONY, SCRIPT, GLX, and etc. We can swap directly, even bigger than the current buy order in Hive-Engine. In the Arcade Colony ecosystem, liquidity providers play a critical role—and the platform rewards that by carving out a dedicated portion of COLONY token distribution just for them.

Overall, the number of Colony tokens in total is still too far to reach with 21 billion Colony tokens (yes 1,000x than the number of current bitcoins). Out of the total 21 billion COLONY tokens planned, 2 billion (≈10%) are earmarked for liquidity provider rewards, released gradually over 20 years. This ensures ongoing incentives for users who help maintain the depth and efficiency of trading pairs.

The pair of COLONY:HIVE is the biggest chunk of rewards among them all. Arcade Colony initially launches with trading pools on multiple chains—including Hive Engine, BNB Smart Chain, and Ethereum—and pairs like COLONY:HIVE, SCRIPT:HIVE, COLONY:BNB, and others. Each liquidity pool has a designated share of 100 million COLONY tokens per year, allocated proportionally based on pool and token pairs.

Below is the breakdown of Liquidity Provider rewards:

• COLONY:HIVE — 15 million COLONY/year (15%)
• SCRIPT:HIVE — 10 million/year (10%)
• COLONY:SCRIPT — 5 million/year (5%)
• COLONY:SPS, COLONY:GLX, SCRIPT:DEC, SCRIPT:GLUSD each get 2.5 million/year (2.5%)
• On BNB Chain: COLONY:BNB receives 10 million/year (10%)
• On Ethereum: COLONY:ETH and SCRIPT:USDC/ETH each receive 10 million/year (10%)
• Unallocated / future markets — 20 million/year (20%) for DAO‑governed future pairs

These sets of Colony pairing makes the world of Arcade Colony trading awesome. It also provides a better liquidity so that the market can't be manipulated by a number of whales. Users earn rewards proportional to their share of liquidity in each pool. The DAO can later adjust reward percentages, add new pairs, or rebalance developments to respond to emerging market demand—all managed through governance voting