Following the initial 2-year distribution period — which is aimed at bootstrapping the user base through the generous, inflationary issuance of token rewards — we transition into a buy-and-distribute model that includes a Performance Mining program and rewards for STRT stakers. Tokens are redistributed using a dynamic approach that aims to allocate the protocol’s resources to where they are best suited — either rewarding users and encouraging protocol growth (i.e. re-investment), or through rewarding token stakers (i.e. dividends).

Flow of funds

  1. 1.
    Performance fees are paid to fund managers in fund tokens, a portion (protocol fees) are allocated to the Treasury.
  2. 2.
    The Treasury redeems the protocol fees (fund tokens) for USDC from the fund.
  3. 3.
    USDC is made available for 1-month for deployment via governance vote. The Treasury exchanges undeployed USDC for STRT tokens through the Serum DEX.
  4. 4.
    A minimum portion of the purchased STRT tokens are distributed to STRT stakers, as determined by the Staking Reward Ratio (see Token distribution scenario analysis).
  5. 5.
    A portion of the purchased STRT tokens are distributed to the protocol’s top performing investment funds for the performance mining program, investors share these with the fund manager in a manager-determined ratio.
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