DUAL Token
The governance and utility token powering the Dualis Finance protocol
DUAL is the native governance token of Dualis Finance. It serves as the backbone of the protocol's decentralized decision-making process, aligning the incentives of participants, developers, and the broader community. Token holders can vote on protocol changes, stake to earn fee revenue, and participate in the long-term direction of the platform.
Token Utility
The DUAL token has been designed with multiple complementary functions that reinforce protocol security, participation, and alignment. Each utility creates a distinct reason for long-term token holding and active protocol participation.
| Utility | Description |
|---|---|
| Governance Voting | Vote on protocol proposals including parameter changes, new pool creation, treasury spending, and protocol upgrades. |
| Staking | Stake DUAL to earn a share of protocol revenue and boost voting power. Staked tokens are subject to a cooldown period upon unstaking. |
| Fee Sharing | A portion of protocol revenue is distributed to DUAL stakers proportional to their staked balance. |
| Proposal Creation | Hold at least 100 DUAL to create governance proposals and submit them for community voting. |
| Credit Tier Discounts | DUAL stakers receive improved credit tier parameters, including reduced interest rate premiums and enhanced LTV ratios. |
Token Allocation
The total supply of DUAL is fixed at 1,000,000,000 (one billion) tokens. There is no minting function and no inflationary mechanism. The supply is allocated across six categories, each with its own vesting schedule to ensure long-term alignment.
| 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 |
Vesting Schedules
Vesting ensures that long-term contributors and investors remain aligned with the protocol's success. Each allocation category follows a distinct schedule:
- Protocol Development (25%) -- Tokens vest linearly over 4 years with a 12-month cliff. No tokens are released during the first year; after the cliff, tokens unlock on a per-block basis over the remaining 3 years.
- Ecosystem Growth (20%) -- A 3-year linear vesting schedule with a 6-month cliff. These tokens fund grants, partnerships, liquidity programs, and integrations that expand the Dualis ecosystem.
- Community Rewards (25%) -- Distributed on a per-epoch basis according to protocol usage. Suppliers, borrowers, and liquidators earn DUAL proportional to their activity. There is no cliff; distribution begins at protocol launch.
- Treasury (15%) -- Fully controlled by the DAO through governance proposals. Treasury tokens can only be deployed through a governance vote that meets the 25% quorum requirement for treasury spend proposals.
- Investors (10%) -- 2-year linear vesting with a 6-month cliff. Investor tokens are locked during the cliff period and then release proportionally each block.
- Advisors (5%) -- 2-year linear vesting with a 12-month cliff. Advisor allocations follow the same mechanism as investor tokens but with a longer cliff to incentivize sustained contributions.
Staking Mechanics
DUAL holders can stake their tokens to earn a proportional share of protocol revenue and amplify their governance voting power. Staked DUAL accrues rewards from the protocol fee pool, which collects revenue from reserve factors, flash loan fees, and securities lending commissions.
Unstaking requires a 7-day cooldown period during which tokens remain locked and continue earning rewards. After the cooldown completes, tokens can be withdrawn freely. This mechanism prevents short-term staking exploits around governance votes and revenue distribution events.
Fee Sharing
Protocol revenue is split between the treasury and DUAL stakers. A configurable percentage of all protocol fees -- currently set at 40% -- flows to the staking reward pool and is distributed proportionally to stakers based on their share of the total staked supply. The remaining 60% is directed to the protocol treasury for operational expenses, development funding, and ecosystem growth.
Fee sharing rewards are denominated in the underlying fee token (for example, USDC from borrow reserve factors). Stakers can claim accumulated rewards at any time without affecting their staked position.