Kwenta Documentation
DiscordKwentaTwitterBlog
  • 🥂Welcome to Kwenta
  • Getting Started
    • How to start using Kwenta
    • Introduction
    • Getting started on Optimism
    • How to get sUSD
    • Access Kwenta
      • Installing the IPFS Companion to Access Kwenta
      • Backup RPCs
      • Withdrawing from v2 Isolated Margin using Optimistic Etherscan
  • Using Kwenta
    • Futures on Kwenta
    • Jargon
    • Synthetix Isolated Margin
      • Funding
        • Technical Details
      • Delayed Orders
      • Maker/Takers on Kwenta
      • Leverage
      • Liquidations
      • Initial/Maintenance Margin
      • One-Click Trading
        • Onboarding to 1CT
        • FAQ
      • Smart Margin
        • Dashboard Overview
        • Futures UI Overview
        • Get Started with Smart Margin
          • Withdrawing sUSD & ETH
          • Opening/Closing Positions
          • Conditional Orders
            • Limit Orders
            • Stop-Loss Orders
          • FAQ
      • Delegated Trading
        • Getting started
        • Managing Delegates
        • Accessing Accounts Delegate to You
      • Fees
      • Referral Program
        • The Traders Tab
        • The Affiliates Tab
        • Incentive Tiers and Rewards
      • FAQ
    • Perennial Isolated Margin
      • Perennial Intro
        • Market Design
        • Oracles
        • Payoff & Positions
        • Trading Fees and Price Impact
        • Funding Rate
        • Interest Rate
        • Leverage & Liquidations
        • Collateral
        • CodeBase
      • Bridging to Arbitrum
      • Trading on Perennial
        • Dashboard Overview
        • Futures UI Overview
        • Opening/Closing Positions
        • Advanced Orders
          • Limit Orders
          • Stop-Loss Orders
      • Gasless Trading
        • Onboarding to 1-Click-Trading
        • FAQ
  • Kwenta Token
    • Staking KWENTA
      • How to stake KWENTA
      • Escrow and Vesting
      • Transferring Escrow Entries
    • Claiming Rewards
    • Trading Rewards
  • DAO
    • Kwenta Token
    • Governance
    • MarketingDAO
    • devDAO
      • Contributing to the Kwenta Frontend
        • Troubleshooting
        • Testing
  • Developers
    • Deployed Contracts
      • V2 Futures Market Proxy Contracts
    • Verify Kwenta
    • Kwenta SDK
  • Resources
    • Audits
    • Development progress Epoch 1 2024
    • GitHub
Powered by GitBook
On this page
  • Supply
  • Inflation and Fee Allocation:
  • Vesting Mechanism

Was this helpful?

  1. DAO

Kwenta Token

Kwenta tokenomics explained

PreviousTrading RewardsNextGovernance

Last updated 1 year ago

Was this helpful?

The Kwenta token (KWENTA) will be used to incentivize coordination and growth within the Kwenta DAO. It will have two primary functions: (a) Staking and (b) Governance.

  • Optimism token address:

Further reading:

Supply

KWENTA will have an initial supply of 313,373. Weekly emissions will start at 14,463.37 $KWENTA the first week and drop to around 200 $KWENTA (1% APY) at the end of four years. Resulting in a total supply at the end of four years of 1,009,409.43.

  • 30% - Synthetix Stakers (Complete)

  • 5% - Early Synth Traders (Complete)

  • 5% - Investment

  • 25% - Community Growth Fund

  • 15% - Core Contributors

  • 20% - Kwenta Treasury

Inflation and Fee Allocation:

20% of inflation is routed to the treasury, 20% of inflation is dedicated towards trading rewards (15% is earmarked for future trading incentives by the treasury) and 60% of inflation is routed to stakers.

This will enable Kwenta to sustainably fund DAO roles while enabling the community to use the entire token supply as needed.

Inflation is minted once per week by a keeper; however, this mint functionality can be called by anyone in the event the Kwenta DAO keeper is unable to mint rewards. The reward for minting is 1 KWENTA per mint.

Vesting Mechanism

KWENTA printed via inflation will undergo a 1-year lock-up period. The lock-up mechanism will begin with an 90% fee for vesting KWENTA early which will decay linearly. If tokens are vested early, the percentage of tokens that are still applicable to the fee will be sent back to the treasury. After one year, the fee would reach 0% and no tokens would be burned when vesting KWENTA.

Ex. If you have 1 $KWENTA, and its vesting, and you vest immediately, you’ll be left with 0.1 $KWENTA, if you wait a year and you vest, you get 1 $KWENTA

0x920Cf626a271321C151D027030D5d08aF699456b
KIP-4: Kwenta Tokenomics
Kwenta Tokenomics Chart