STRD Token: Utility & Tokenomics
The STRD token is a way for users to participate in governance and collect staking rewards derived from protocol fees. Learn all about its utility and tokenomics here.
UTILITY
The 3 pillars of the STRD token
VALUE ACCRUAL
Staked STRD receives 85% of protocol fees, which is distributed as a basket of different Cosmos tokens. So stakers receive stTIA, stDYDX, stATOM, etc as a staking reward. While the majority of the staking reward is from protocol fees, a supplement of newly-emitted STRD is added.
GOVERNANCE
Staked STRD can vote in onchain governance proposals. Stakers can vote on: which host-chain validators to delegate tokens to, how to spend community pool funds, protocol upgrades, and other important issues.
SECURING THE NETWORK
By staking their STRD, users are effectively securing the integrity of the network. For that, they earn some additional APR through inflation.
REVENUE DISTRIBUTION
Projected yearly revenue earned through Stride's 10% fee across all its LST's. Here's how it's distributed:
FUNDING
Funding and allocation facts
Seed Sale
Date
May 2022
Amount raised
$6.7M
Lockup period
1 year lock, 2 year vest
Incentive Diversification Sale
Date
March 2023
Amount raised
$1.5M
Lockup period
1 year lock, 2 year vest
Strategic Celestia Fundraise
Date
January 2024
Amount raised
$4M
Lockup period
1 year lock, 1 year vest
+10 Celestia eco angels
TERMINAL TOKEN ALLOCATION
APPROXIMATE STRD EMISSION SCHEDULE
(IN MILLIONS)
Tokenomics emissions are rough estimates, not promises, and may be inaccurate.
LIQUIDITY
Incentives and protocol owned liquidity
Trading liquidity on DEXes gives stToken holders the ability to instantly swap from liquid staked token to unstaked token. Given the importance of this, forward guidance about future incentives has always been given, so that stToken holders and stToken liquidity providers are never surprised.
Enhanced Liquidity for stTokens
Stride boosts liquidity on DEXes, facilitating immediate swaps between liquid staked and unstaked tokens.
SUSTAINABLE EMISSIONS
STRD emissions are reduced through a diversified incentive strategy using other tokens, ensuring clarity and predictability for token holders.
Transparent and Efficient Incentive Model
Collaborations with entities like Osmosis, Evmos, Shade, and Cosmos DAOs contribute significantly to the stToken pools, promoting a self-sustaining ecosystem.
