$LODE Tokenomics and Mechanics

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

  • 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

Initial Supply of 618,830 LODE and Release Schedule:

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. 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.

Our governance is already active on our Discord forum (https://discord.gg/wtXg5UQ95r) while votes are enabled on-chain with Snapshot (https://snapshot.org/#/lodestarfinance.eth)

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.

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