$LODE Tokenomics and Mechanics

The total supply of 20 million LODE is distributed as such:

  • 60% to Emissions
  • 18% to Team
  • 9% to Investors
  • 5% to Treasury
  • 3% to Employees
  • 2% to Community Fund
  • 2% to protocol Owned Liquidity Seeding
  • 1% to Special Arbitrum Odyssey Event
LODE allocation

Initial Supply of 618,830 LODE and Release Schedule:

Emission Breakdown
Emissions Visualized

How Emissions are Directed:

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.

Lodestar token use cases:

1. Governance: Lodestar is a governance token that represents a holders share in the DAO. As a token holder you can vote in proposals governing the platform, and voting power is proportional to token share. Governance would encompass where emissions are directed, adding new pools/products and managing the community fund and treasury.
2. Platform Revenue share. (Note: This is a working concept and is subject to change in the future) LODE token holders can stake their tokens for a proportional share of protocol fees. The protocol will take a 10% fee on all emissions and fees produced within the liquid staking service and distribute it to token stakers. The protocol will also take a 50% fee on all tokens allocated to the reserves of the money markets and distribute it to token stakers. Possible future functionality to claim/withdraw LODE staking rewards denominated in individual yield currencies (PLS, drMAGIC, etc.) or a single asset such as ETH. LODE automatically stakes when it emits within the lodestar dApp and immediately begins earning yield.