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Kwenta Token

Kwenta tokenomics explained
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.
Further reading: KIP-4: Kwenta Tokenomics​

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.
Kwenta Tokenomics Chart
  • 30% - Synthetix Stakers
  • 5% - Early Synth Traders
  • 5% - Investment
  • 25% - Community Growth Fund
  • 15% - Core Contributors
  • 20% - Kwenta Treasury

Inflation and Fee Allocation:

20% of inflation will be routed to the treasury. 60% of inflation will be routed to stakers and 20% to trading rewards. These percentages can be adjusted at the Elite Council's discretion via a KIP. This will enable Kwenta to sustainably fund DAO roles while enabling the community to use the entire token supply as needed.

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