Token Utility
To utilize any of the feeless core modules, all one needs to do is stake and lock a certain amount of SOON tokens:
This unique staking support mechanism is to prevent malicious actors from exploiting the feeless nature of the modules and spamming the network. Stakers have a minimum lock up period of one month, but have the option to increase that locking period linearly up to 12 months, and by doing so can increase their allocation of staking rewards up to 2x.
Users can either stake just the SOON token or SOON/Shimmer LP tokens to receive staking rewards. These staking rewards come from two places:
30% of the token supply will be used from the Community Adoption Incentives allocation to reward stakers and DEX liquidity providers over a period of 3 years, with higher rewards in the beginning that taper off over time.
Service modules will be generating fees in SMR (the native token of the Shimmer Network). Soonaverse service modules will automatically send 100% of the fee revenue to the Soonaverse vault. Third party service modules will automatically send a portion of their fee revenue (e.g. 10%) to the Soonaverse vault and get to keep the rest. On a regular basis, the Soonaverse vault will take all of the SMR it’s accrued and market buy as many SOON tokens as it can off a DEX where liquidity was established. All these newly bought SOON tokens will then be sent to all stakers as a distribution. These are called Service Protocol Distributions of Revenue (SPDRs).
Token holders now directly benefit from increased service protocol activity. More service modules that are built on top of the Soonaverse means more SMR that goes into the vault and larger distributions to SOON token and SOON/Shimmer LP token stakers.
23% of the token supply is allocated to the Soonaverse Treasury, and all of it will be staked. Projects will be incentivized to build third party service modules on top of the Soonaverse because SPDRs accrued by the Treasury will be used to finance them. The amount of funding a project receives to build a third party service module is directly correlated with how profitable their ventures may be as well as the portion of their fee revenue they commit to sending to the Soonaverse vault. These new third party service modules will generate more revenue that will go to the vault and allow the Treasury to invest in more third party service modules to generate even more revenue!
SOON token holders will also have governance rights and the opportunity to vote in council members every 3 months. To start out there will be 3 different councils consisting of 8 members each:
Service Module Council — Vetting third party service module requests and funding the best projects.
Protocol Upgrades Council — Improvement proposals must be approved by this council before being implemented into the Soonaverse.
Treasury Council — In charge of all things treasury to make sure the Soonaverse is always well funded and operational.
The SOON token has many features and truly connects the token holders with the Soonaverse.
Our intention is to drive communities to our default suite of higher margin service modules such as the Token Launchpad and various DeFi products. The likelihood of enabling and profiting from the next “unicorn” is orders of magnitude higher in this vibrant marketplace model.
Last updated
