🪙Tokenomics and Emissions
Last updated
Last updated
The initial supply of $SKY is 100M.
Out of this, the initial circulating supply will be 28.16M ($1.88M), with the remaining amount locked or vested.
Note: Any unsold tokens from the IDO/Token Sale Allocation will be used for ongoing protocol development or future fundraising efforts
The token distribution will be structured as the following:
11.66M for the token sale unlocked immediately (11.66%)
7M for POL — Protocol Owned Liquidity (i.e. for ETH/SKY pools) (7%)
9M for the Development and Marketing Fund. The other half of the fund is linear vested.
0.5M for the Ecosystem Rewards. The other part of the rewards are linear vested (0.5%)
9M for the Development and Marketing Fund (9%) with a 2-year linear vesting period
6M for the Skydrome team (6%) 12-months cliff with a 4-year linear vesting period
3M for the pre-mining (3%) with a 1 month lockup (Starting from one week after the end of the presale)
4.5M for the Ecosystem Rewards. Those funds are linear vested of a time-frame of 2 years (4.5%)
Note: Locked for 2 years in $veSKY of various sizes.
33.33M for the Ecosystem Fund and Initial Liquidity Incentives (33.33%) — For activities boosting the Skydrome Ecosytem for example for for partner protocols / communities or directing emissions to selected pools, etc.
16M for the DAO Treasury (16%)
Skydrome utilizes two tokens for managing its utility and governance:
$SKY — ERC-20 utility token of the protocol
$veSKY — ERC-721 governance token in the form of an NFT (non-fungible token)
$SKY is used for rewarding liquidity providers through emissions.
$veSKY is used for governance. Any $SKY holder can vote-escrow their tokens and receive a $veSKY (also known as veNFT) in exchange. Additional tokens can be added to the $veSKY NFT at any time.
The lock period (also referred to as the vote-escrowed period, hence the ve prefix) can be up to 4 years, following the linear relationship shown below:
100 $SKY locked for 4 years will become 100 $veSKY
100 $SKY locked for 1 year will become 25 $veSKY
The longer the vesting time, the higher the voting power (voting weight) and rewards the $veSKY holder receives.
Note: Any unsold tokens from the IDO/Token Sale Allocation will be used for ongoing protocol development or future fundraising efforts.
Skydrome mechanics incorporate a blend of two DeFi concepts:
Vote-Escrow — first introduced by Curve to bolster incentives for long-term token holders
Staking/Rebasing/Bonding or (3,3) game theory — designed by Olympus DAO
Combined, the ve(3,3) mechanism rewards behaviors correlated with Skydrome’s success, such as liquidity provision and long-term token holding. Liquidity providers receive $SKY emissions, and $veSKY holders receive protocol fees, bribes, rebases, and governance power.
Weekly emissions start at 1M $SKY (1% of the initial supply) and decay at 1% per week (epoch).
$veSKY holders receive a rebase proportional to epoch LP emissions and the ratio of $veSKY to $SKY supply, thus reducing vote power dilution for $veSKY!
Rebase for $veSKY Holders: $veSKY holders get a rebase that's proportional to epoch LP emissions and the ratio of $veSKY to $SKY supply. This minimizes vote power dilution for $veSKY holders.
Rebase Calculation Formula:
Note: The supply of $veSKY doesn't impact the weekly LP emissions.
Note: The emissions and individual parameters, such as min/max emissions, team rate, decay, etc., are variable and will be adjusted by protocol parameter optimization every week. The formulas and schedules in this documentation indicate only the planned release and are subject to change on a weekly basis.
Holders of $veSKY get to determine which liquidity pools are granted emissions during a specific epoch by casting votes on their favored liquidity pool gauges. $SKY emissions will be apportioned based on the total votes a liquidity pool secures. In reciprocation, voters are awarded 100% of the trading fees and incentives amassed through the liquidity pool they advocate for.
While Skydrome encourages permissionless liquidity pools, gauge formation is exclusive to whitelisted tokens. A segment of the partner integration process involves token whitelisting where necessary. Partners have the liberty to propose added tokens for whitelisting.
The token distribution and token supply, as outlined in the Documentation, are indicative only and may be subject to reasonable adjustments based on further determinations. Do not treat any of this documentation as financial advice. We will not take any responsibility for its accuracy, errors, or any parts that may already be outdated.
