Kwenta Tokenomics
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 and fees will be routed to the treasury. 80% of inflation and fees will be routed to stakers. 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 80% 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 burned. 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 0.2 $KWENTA, if you wait a year and you vest, you get 1 $KWENTA

Distribution

  • Synthetix stakers - SNX stakers who have met the requirements (TBD) will be allocated 30% of the initial token supply.
  • Synth Traders - Addresses that have used Kwenta and meet the requirements (TBD) will be allocated 5% of the initial token supply.
The remaining KWENTA will be allocated to the treasury for further management.
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Supply
Inflation and Fee Allocation:
Vesting Mechanism
Distribution