Tokenomics

The STAB3L ecosystem features a dual-token system designed to separate utility and governance functions, creating a balanced and sustainable economic model.

{% hint style="info" %} The STAB3L token system includes two distinct tokens: sSTB (utility token) and rSTB (governance token). {% endhint %}

{% hint style="warning" %} Important: CU tokens are NOT tradable assets. They are temporary tokens that are burned immediately when exchanged for sSTB. This burning mechanism is crucial for maintaining the peg and ensuring that each sSTB is backed by real compute resources. {% endhint %}

Token Overview

STAB3L uses two primary tokens:

sSTB Token (sSTB)

The sSTB token is the main utility token of the ecosystem, used for:

• Paying fees on the platform
• Staking for reduced fees
• Providing liquidity
• Cross-chain bridge fees

Token Distribution

The sSTB token distribution is designed to ensure wide distribution and long-term sustainability:

Token Utility

The sSTB token has several utilities within the ecosystem:

Fee Payments

Users can pay fees with sSTB tokens and receive a discount:

• Marketplace Fees: 10% discount when paying with sSTB
• Bridge Fees: 10% discount when paying with sSTB
• Redemption Fees: 10% discount when paying with sSTB

Staking

Users can stake sSTB tokens to receive benefits:

• Fee Reduction: Up to 50% fee reduction based on staking amount
• Boosted Rewards: Increased rSTB rewards for other activities
• Priority Access: Early access to new features and markets

Liquidity Provision

Users can provide liquidity for sSTB pairs and earn rewards:

• Trading Fees: Earn a share of trading fees
• rSTB Rewards: Earn rSTB tokens for providing liquidity
• Boosted APY: Higher APY for longer commitment periods

rSTB Governance Token (rSTB)

The rSTB token is the governance and rewards token of the ecosystem, used for:

• Voting on governance proposals
• Staking for additional benefits
• Earning rewards for ecosystem participation

Token Distribution

The rSTB token distribution is designed to ensure decentralized governance:

Token Utility

The rSTB token has several utilities within the ecosystem:

Governance

rSTB token holders can participate in governance:

• Proposal Creation: Requires 1,000 rSTB tokens
• Voting: Vote on proposals with weight proportional to holdings
• Delegation: Delegate voting power to other addresses

Staking

Users can stake rSTB tokens for additional benefits:

• Governance Rewards: Earn rewards for participating in governance
• Fee Reduction: Up to 50% fee reduction on all platform activities
• Boosted Yields: Higher yields in liquidity mining and staking programs

Rewards

Users earn rSTB tokens as rewards for various activities:

• Compute Provider Staking: Compute providers earn rSTB rewards for staking their compute resources
• Liquidity Provision: Provide liquidity to earn rSTB rewards
• Trading: Earn rSTB rewards based on trading volume
• Provider Rewards: Compute providers earn rSTB for reliable service

Token Economics

Emission Schedule

Both tokens follow a deflationary emission schedule:

{% tabs %} {% tab title="sSTB Emission" %} The sSTB token emission follows a 4-year schedule:

• Year 1: 40% of total community allocation
• Year 2: 30% of total community allocation
• Year 3: 20% of total community allocation
• Year 4: 10% of total community allocation

After Year 4, any additional emission requires governance approval. {% endtab %}

{% tab title="rSTB Emission" %} The rSTB token emission follows a 5-year schedule:

• Year 1: 30% of total community allocation
• Year 2: 25% of total community allocation
• Year 3: 20% of total community allocation
• Year 4: 15% of total community allocation
• Year 5: 10% of total community allocation

After Year 5, emission reduces to 2% annual inflation, subject to governance approval. {% endtab %} {% endtabs %}

Token Burning

Both tokens include burning mechanisms to create deflationary pressure:

• sSTB: 10% of all fees collected in sSTB are burned
• rSTB: 5% of all rewards distributed are burned

Value Accrual

The tokens accrue value through different mechanisms:

sSTB Value Accrual

• Fee Discounts: Creates demand for holding sSTB
• Staking Benefits: Encourages locking tokens, reducing circulating supply
• Burning Mechanism: Reduces total supply over time
• Treasury Buybacks: Treasury may periodically buy back and burn tokens

rSTB Value Accrual

• Governance Rights: Value from decision-making power
• Fee Sharing: Portion of platform fees distributed to stakers
• Staking Rewards: Additional rewards for staking
• Protocol Revenue: Share of protocol revenue directed to rSTB stakers

Staking Programs

STAB3L offers several staking programs:

sSTB Staking

Stake sSTB tokens to earn benefits:

rSTB Staking

Stake rSTB tokens to earn benefits:

Compute Provider Staking

Compute providers stake their compute resources to earn rSTB rewards:

*Boosted APY available when also staking rSTB tokens

{% hint style="success" %} The longer the staking period beyond the minimum 7 days, the higher the rSTB rewards. This incentivizes long-term commitment from providers, enhancing the stability of the ecosystem. {% endhint %}

Collateralization Requirements

All compute providers must maintain a minimum collateralization ratio of 120% of the CU value. This ensures that there is sufficient collateral to back the sSTB tokens in case of provider default or other issues.

For optimal security and to avoid potential liquidation, a recommended collateralization ratio of 150% or higher is advised.

Liquidity Mining

Provide liquidity to earn rewards:

*Boosted APY available when also staking rSTB tokens

Token Governance

The governance system uses the rSTB token for voting:

• Proposal Creation: Requires 1,000 rSTB tokens
• Voting Power: 1 rSTB = 1 vote
• Quorum: 4% of total rSTB supply required for a proposal to pass
• Majority: >50% of votes must be "For" for a proposal to pass
• Timelock: 2-day timelock for standard proposals, 6-hour timelock for emergency proposals

Treasury Management

The STAB3L treasury manages funds for ecosystem development:

• Revenue Sources: Platform fees, token allocations
• Expenditures: Development, marketing, grants, liquidity provision
• Investment Strategy: Conservative approach with diversified assets
• Transparency: Quarterly reports on treasury activities
• Governance: Major expenditures require governance approval

Conclusion

The STAB3L dual-token system creates a balanced economic model that separates utility and governance functions. By holding and staking these tokens, users can participate in the ecosystem, earn rewards, and help shape the future of the platform through governance decisions.