Use cases
The STRT token’s primary use is to govern the SolStreet Protocol, determining the usage of treasury assets and protocol parameterization, as well as helping shape the direction that the protocol moves. Voting power is determined by a combination of the number of STRT tokens staked and the duration for which they have been locked up. A minimum voting power will be required to make a governance proposal.
Following the first two years of inflation, locking up your STRT tokens will be yield-generative, as it entitles you to a share of STRT redistribution rewards.
Examples of proposals that could be determined by a STRT holder vote include:
  • Governance voting on core protocol matters such as:
    • New assets to be added to the protocol. The Solstreet protocol will launch with an initial core group of investable assets. This group will be selected based on liquidity, availability, and time in force. Future asset additions can be proposed and voted on by STRT token holders.
    • Voting on improvement proposals. After mainnet launch, the protocol’s future development will be driven by proposals that are voted on by the community.
    • Voting on changes to the ranking algorithm. The ranking algorithm governs how the performance mining rewards are distributed. This algorithm is used to determine which funds (or groups of funds) receive the issuance of new performance mining rewards.
    • Determining the protocol fee. At inception, 10% of performance fees earned across the protocol accrue to the Treasury.
    • Allocating treasury spend. During the initial 1-year launch phase all protocol fees will accrue to the treasury; the use of these funds will need to be determined via governance vote. Thereafter, any protocol fees are made available for a 1-month period for deployment via governance vote.
    • Determining the Staking Reward Ratio. The protocol buys and redistributes a certain minimum number of STRT tokens to STRT stakers as determined by the Staking Reward Ratio. Initially this is set to 20% but is subject to change via voting. See “Staking Reward Ratio” in “STRT staking”.
  • Discounts on protocol fees. Investors who stake STRT will receive discounts on protocol fees on a tiered basis.
  • Multiplier on Performance Mining rewards. Asset managers who hold STRT in their fund will receive additional performance mining rewards based on their percentage of STRT in relation to overall assets.
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