Standard Tokenomics
The Standard native token is the Standard Digital Asset (SDA)
Last updated
The Standard native token is the Standard Digital Asset (SDA)
Last updated
The Standard native token (SDA) provides a mechanism for Standard to raise money, fund operations, and pay investors, the team, and contributors. It also enables us to distribute the SDA token according to our project goals.
The SDA token enables us to distribute the project's core value to our ecosystem. The goals of this distribution are to incentivize participation, create (non-equity) value, and to ensure the DAO features implement true decentralization to a diverse range of stakeholders.
All SDA tokens are backed by a treasury of assets that grows with the adoption of Web3. Token holders receive ownership over the entire Standard ecosystem. This includes protocol voting rights, treasury asset delegation, and profit distribution from all activities. We will be releasing the SDA token when the core Standard Protocol is live.
There is a 700 million vested supply of SDA. This is a fixed supply that will only grow given a substantial increase in asset backing >$1.
The initial presale offering is for pSDA, which is a precursor derivative of SDA; it gives the holder the option to mint SDA by burning pSDA and providing the intrinsic value of SDA (1 Dai = 1 USD). For example, a team member would provide 1 DAI and 1pSDA to mint 1 SDA.
pSDA tokens have 5 vesting periods:
10% unlock after 18 months of official SDA token distribution
22.5% unlocked @ 500M Circulating supply
22.5% unlocked @ 1B Circulating supply
22.5% unlocked @ 1.5B Circulating supply
22.5% unlocked @ 2B Circulating supply
The foregoing offering terms and distribution schedule may be altered, amended and/or supplemented by the Token Issuer at any time in our sole discretion without notice. No token will be unlocked prior to the 18-month unlock period.
The Offering may be extended, withdrawn, or closed at any time in our sole discretion without notice.
SDA is backed, not pegged. Each SDA is backed by a minimum of 1 DAI, but not pegged to it as SDA is not a stablecoin. SDA will likely trade above 1 DAI because there is no upper limit imposed by the protocol and the value captured by the growth of the Standard Treasury asset pool and the revenue and utility generated by active projects will increase the demand for SDA. The intrinsic value of SDA is 1 DAI based on the contract. In reality, it becomes Net Asset Value + premium as the treasury grows in assets similar to a stock trading at a premium to NAV.
There will be periods of time where investors will be able to swap assets directly into the Standard Treasury in return for Equity Tokens. During this swapping process, swappers receive staked SDA (sSDA) coins automatically giving the ability to compound yield without paying fees each day a portion of the swap reward is released. This provides greater benefits to swappers over the course of their term as well as the protocol since liquidity is automatically staked providing greater stability for token price.
Our goal is to provide a robust foundation for SDA tokens by building a diverse and performing treasury of Standard Assets. This will drive the price of the SDA token correlated to the growth of the treasury assets. The growth of the treasury will be dependent upon partnerships, impact, community, marketing, and continued development of novel industry solutions with SDA at the center. The vision for SDA is to build a diverse ecosystem with incentives for bonding and staking at the center to increase treasury holdings and decrease volatility from selling. The initial network features a one-way treasury (money goes in, none comes out), the swapping contract (through which supply increases and profits are produced), and the staking contract (where profits are distributed).
Equity token holders are able to lock their tokens up for a period of time in the staking contract. Holders may choose to lock their SDA tokens for 1-5 years unlocking an equivalent amount of Vested SDA tokens (20-100% of Vested SDA respectively) for which they will be able to allocate towards delegation of treasury assets.
John locks up 1000 SDA for 5 years
John receives 100% of shares of Vested SDA tokens giving him 1000 vSDA.
Paul locks up 5000 SDA for 1 year
Paul receives 20% of shares of Vested SDA tokens giving him 1000 vSDA.
Both John and Paul have the same delegation power and receive the same amount of rewards from protocol revenues even though Paul has 5x more SDA than John. John is rewarded for his support of Standard as he has committed to not selling SDA tokens for 5 years and earns a reward that grows linearly in correlation to that commitment. This staking method enables us to incentivize long-term support of the protocol while driving value for the underlying token.
