$LODE Tokenomics and Mechanics
- 60% to Emissions
- 18% to Team (30 months vest, 1 year cliff)
- 9% to Investors (Community Presale)
- 5% to Treasury
- 3% to Employees
- 2% to Community Fund
- 2% to protocol Owned Liquidity Seeding
- 1% to Special Arbitrum Odyssey Event
Emissions are directed to LPs and to subsidize yield for market participants, for example USDC borrowers and lenders. This is dynamic through governance and these emissions could be redirected.
1. Formal Governance on Snapshot:
LODE is a governance token that represents a holder’s share of the DAO. As a token holder you can vote in proposals governing the platform, and voting power is proportional to token share.
A proposal must be posted on the forums and discussed among DAO members before going on-chain for a vote.
Governance encompasses where emissions are directed, adding new pools/products and managing the community fund and treasury.
2. Platform Revenue share
LODE token holders can stake their tokens for a proportional share of protocol fees, paid in ETH.
The protocol will distribute to LODE stakers 50% of all tokens allocated to the reserves of the markets (cf: Reserve factor article link)
Additionally, when available with the V1, the protocol will take a 10% fee of all emissions and fees produced by the liquid staked asset used as collateral.
More details on the LODE staking module will be released in the weeks following the protocol’s launch
3. Weekly Gauge Voting for Emissions
LODE stakers gain governance power that can be used to vote on emissions allocation to the markets for the following week. Users, DAOs and protocols can use their LODE to vote to further subsidize the poisitions they have on the app and shape the overall incentive strucutre on the markets.