Token Economics
DUAL token supply, allocation, staking, and value accrual mechanics
The DUAL token economy is built around a fixed supply of 1,000,000,000 tokens with no minting capability. The tokenomics model emphasizes long-term alignment between protocol participants through vesting schedules, staking incentives, and revenue sharing. This page provides a comprehensive view of the token's economic design, from initial allocation through ongoing utility and value accrual.
Total Supply
The DUAL token has a fixed total supply of 1,000,000,000 (one billion) tokens. There is no minting function, no inflationary mechanism, and no ability to increase supply through any governance action. The entire supply is allocated at genesis according to the distribution table below.
Token Allocation
The token allocation is structured to balance the needs of protocol development, community growth, and long-term incentive alignment. Each category has been assigned a vesting schedule proportional to its time horizon.
| Category | Allocation | Tokens | Vesting Schedule |
|---|---|---|---|
| Protocol Development | 25% | 250,000,000 | 4-year linear, 12-month cliff |
| Ecosystem Growth | 20% | 200,000,000 | 3-year linear, 6-month cliff |
| Community Rewards | 25% | 250,000,000 | Per-epoch, usage-based |
| Treasury | 15% | 150,000,000 | DAO-controlled |
| Investors | 10% | 100,000,000 | 2-year linear, 6-month cliff |
| Advisors | 5% | 50,000,000 | 2-year linear, 12-month cliff |
Staking Mechanics
DUAL staking is the primary mechanism for earning protocol revenue and amplifying governance influence. Stakers deposit DUAL into the staking contract and receive stkDUAL, a non-transferable receipt token that tracks their staked position and accrued rewards.
- Reward accrual -- Protocol revenue is distributed to the staking pool continuously. Rewards accrue per block based on the staker's proportional share of total staked supply.
- Cooldown period -- Unstaking requires initiating a 7-day cooldown. During this period, tokens remain staked and continue earning rewards. After the cooldown, tokens can be withdrawn within a 48-hour unstake window.
- Voting multiplier -- Staked DUAL carries a 1.5x voting power multiplier. A holder with 10,000 staked DUAL has the voting power equivalent of 15,000 unstaked tokens.
- Slashing protection -- There is no slashing mechanism in the current staking design. Staked tokens cannot be reduced or confiscated by the protocol under any circumstances.
Token Utility Breakdown
The DUAL token serves multiple functions within the protocol ecosystem. These utilities create diverse demand drivers and reinforce the incentive to hold and stake tokens.
| Function | Priority | Description |
|---|---|---|
| Governance Voting | Primary | Vote on all protocol proposals. Staked DUAL receives a 1.5x voting power multiplier. |
| Revenue Sharing | Primary | Stakers receive 40% of protocol revenue proportional to their staked balance. |
| Proposal Creation | Secondary | Minimum 100 DUAL required to submit governance proposals. |
| Credit Tier Boost | Secondary | DUAL stakers receive enhanced credit tier parameters and rate discounts. |
| Fee Discounts | Tertiary | Staking DUAL unlocks reduced fees on specific protocol operations. |
Value Accrual
The DUAL token accrues value through three complementary mechanisms:
- Revenue sharing -- 40% of all protocol revenue is distributed to stakers, creating a direct link between protocol success and token value.
- Governance premium -- As the protocol manages larger TVL and more complex operations, the governance rights embedded in DUAL become increasingly valuable.
- Supply scarcity -- With a fixed supply and significant portions locked in vesting or staking, the circulating supply contracts over time, creating natural scarcity as demand for governance participation and fee sharing grows.
Emission Schedule
The Community Rewards pool distributes tokens on a per-epoch basis with a declining emission curve. Early participants receive a proportionally larger share of rewards, incentivizing adoption during the protocol's growth phase. The emission rate is calibrated to distribute the full 250,000,000 DUAL allocation over approximately 5 years, with the first year accounting for roughly 40% of total emissions and subsequent years declining proportionally.
The exact distribution per epoch is determined by a formula that accounts for total protocol TVL, utilization rates across active pools, and the number of unique participants. This dynamic approach ensures that rewards scale with genuine protocol usage rather than following a rigid, predetermined schedule.