Performance mining
The purpose of the Performance Mining program is to attract users during the crucial launch phase of the project (the two-year inflationary phase) and to serve as an important tool to align stakeholder incentives, helping attract and preserve users while driving long-term growth by promoting the efficient allocation of investor capital.
The program entails the distribution of STRT token rewards to users β€” initially from token inflation in years 1 and 2, and subsequently from the buy-and-distribute. The program entails objectively scoring funds and issuing tokens in accordance to fund rankings. The split of rewards between a fund’s investors and manager are determined at fund creation by the fund manager β€” allowing a useful tool for fund managers to calibrate in order to balance the goals of attracting users and improving profit margins.
By retaining the ability of the Treasury to issue rewards to protocol users via redistribution rather than inflation, it remains possible to continue to drive stable, long-term protocol growth whilst simultaneously limiting the potential of token prices collapsing under the weight of excessive inflation.

Inflationary phase

The first two years of the protocol are crucial for its long term future. In order to help bootstrap the protocol with sufficient numbers of both investors and fund managers, a generous performance mining program will see 50% of total token supply issued in this period as part of the Performance Mining program.
Over this time protocol revenues will accrue to the Treasury for deployment (or lack thereof) via governance vote, with no demand for the STRT token from the Treasury guaranteed over this period.

Mature phase

After the second year the performance mining program is set to continue, with STRT token rewards funded via an ongoing buy-and-distribute funded by protocol fees.
The protocol will receive 10% of the performance fees earned by the managers (protocol fees). These fees will accrue to a Treasury managed by the Treasury, and are available for a one month period for deployment via governance vote. The funds that have not been deployed following this one month period will be utilized for purchasing STRT tokens from the open market.
A portion of these purchased STRT tokens are redistributed via the Performance Mining program (subject to a Performance Mining Cap which follows an identical exponentially-declining schedule as the initial inflationary Performance Mining program). The remainder are distributed to STRT token stakers (see STRT staking, below). The proportion of tokens redistributed to stakers is determined by a Staking Reward Ratio of 20% (alterable via governance vote), however, the ratio will exceed 20% of purchased tokens whenever the Performance Mining Cap (graphed below) is binding.
The performance mining inflation can be seen below.
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Last modified 6mo ago