Stake to Own
how we incentivize deposits on a protocol wide perspective
A protocol's growth is often gauged by Total Value Locked in it's platform. As such we have an incentive to encourage early adoption of our lending pools by minting our governance token to depositors. Our ratio of 10% means that if we have 1M tokens in circulation with a market cap of $1M and someone adds $10M in assets to the protocol, we would mint them 1M Tokens. This is essentially a pre-determined investment schedule in which one directly contributes to the protocol in order to gain voting rights. With these voting rights they can adjust this percentage either increase or decreasing incentivization to seed the protocol. It is also important to note that this is optional, as it requires the user to also burn their tokens in order to withdraw their staked assets, thus ensuring that a group does not continue to have voting rights in a protocol they no longer participate in.
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