Apr 25
SpaceFi Tokenomics
SpaceFi is a cross-chain web3 platform on Evmos and zkSync, with DEX+NFT+Starter+Spacebase as initial product. This paper is our initial vision of SpaceFi tokenomics, including thoughts on distribution, incentives and governance, to allocate STAR tokens to stakeholders most aligned with the strategic direction of SpaceFi.
🧑🏼🚀 Note: In the first step, SpaceFi will start from DEX+NFT+Starter+Spacebase on Evmos. Then it will launch on zkSync mainnet and other EVM chains in future. As Evmos mainnet is still in the early stage and the compatibility with IBC and EVM is challenging, this initial tokenomics may change due to some circumstances and we will communicate with the community at that time.
The tokenomics article was upgraded on 05.26, reducing max supply from 3B to 1.2B.
📆 Token Release Schedule
SpaceFi will have an initial supply of 120 million STARs at genesis, for airdrop, IDO, and strategic reserves. This will balance early contributor incentives and future development needs to pursue long-term benefits with the community.
Under the initial token model, new tokens would be released according to a “thirdening” schedule. Similar to Bitcoin’s halvening, where token issuance is decreased by half every four years, in SpaceFi, the token issuance will be cut by ⅓ every year.
To expound further, the thirdening schedule works as follows: In the first 365 days, there will be a total of 360 million tokens released or 0.986 million daily. In the second 365 days, this will be cut by ⅓, and thus there will be a total of 240 million tokens released. In the third 365 days, this will be cut by ⅓ again…
This thirdening process will allow STAR to reach an asymptotic maximum supply of 1.2 Billion.
*As an initial distribution plan, the token emission, decay rate and schedule can be adjusted through governance.
1. The allocation of new token released
● 80%, to the community
- 70%, allocated to mining rewards, for liquidity rewards, staking, trading mining, etc.
- 10%, allocated to DAO treasury, through governance, for ecological construction, strategic cooperation, etc.
*The above ratio can be adjusted to coordinate short-term and long-term interests.
● 20%, to the dev team
If certain individuals on the initial development team are no longer part of the network, the community may choose to reclaim any unpublished tokens and redirect them to the new program.
2. Token emission and deflation
● Emission:
Distributed by the block, new STAR will be issued when the farm rewards is harvested.
● Deflation:
- 10% of the emission of block belongs to DAO, locked and used by community governance.
- 1/3 of the swap fee is used to buy back STAR, 50% is directly burned and 50% is used as platform fee (70% for NFT bonus and 30% for DAO locked).
- 90% of STAR paid for minting NFT is directly burned and 10% is used as platform fee (70% for NFT bonus and 30% for DAO locked).
- 5% of the NFT marketplace trading volume is used as platform fee (70% for NFT bonus and 30% for DAO locked).
- 90% of the STAR paid for creating spacebases or increasing the quota of members will be directly burned and 10% will be used as platform fee (70% for NFT bonus and 30% for DAO locked).
- For some single farm pools, if the rewards is harvested within 30 days, 50% of the rewards will be used as the platform fee (70% for NFT bonus and 30% for DAO locked).
- Using LP tokens to raise funds for the project in Starter, the raised STAR tokens will be burned.
🗓 Timeline
After Evmos mainnet is relaunching, we may launch Space Swap first to enable the community to add liquidity and swap ERC20 tokens. When Evmos mainnet, bridges, ERC20 modules, etc. are running stable, we will start issuing STAR tokens at an opportune time and open Farm, NFT, Starter, Spacebase, etc. In the future, SpaceFi will continue to be deployed to cross-chain networks such as zkSync and Celo. In the next few weeks, we will have more transparent communication with community.
🌟 Conclusion
SpaceFi’s goal is a cross-chain web3 platform, starting with DEX+NFT+Starter+Spacebase. So we need a dynamically adaptable tokenomics to match future development needs. This will be achieved through governance. Our underlying principle is to incentivize key stakeholders and contributors, which in turn will inspire the SpaceFi ecosystem.
Thus, the token model is intended to be adapted and updated by the community over time. Such adjustments to the model can be proposed and voted on through on-chain governance. STAR holders should feel empowered to change the token model of the chain as necessary to support their vision for the platform.
🪐 About SpaceFi
SpaceFi is a cross-chain web3 platform on Evmos and zkSync, with DEX+NFT+Starter+Spacebase as initial product. The first project to connect Cosmos and Layer2 ecosystem.
