Tokenomics

Overview

ALK is Alkemi Network’s native utility token. Based on the ERC-20 standard, ALK token’s primary utilities are network governance and incentive for network participation.

Name

Alkemi Network DAO Token

Symbol

ALK

Type

ERC-20

Decimals

18

Initial Supply

100,000,000

Total Supply

200,000,000 (Fully Diluted after 4 years)

Utility

Governance/Voting

TGE Date

July 2021 (exact date TBA)

Governance Utility

Alkemi is the first decentralized liquidity network to facilitate both KYC permissioned (Verified) and permissionless (Open) liquidity pools governed by one utility token.

ALK holders will be able to propose and vote on decisions concerning protocol parameters and properties such as:

  • Setting interest rate models and base fee structures (e.g. origination fees)

  • Administering asset markets (e.g. add, remove, lock, unlock)

  • Updating protocol contracts and risk parameters (e.g. utilization limits, collateral ratios)

  • Amending admin roles (e.g. Liquidators, KYC admin)

Liquidity Rewards

Alkemi Network will distribute ALK rewards to liquidity providers through the Alkemi Liquidity Mining Program to incentivize network participation.

With Alkemi’s Liquidity Mining Program, 35% of total ALK supply (70 million tokens) will be distributed to liquidity providers over 4 years. At every Ethereum block creation (currently around 15 seconds per block), ~8.32 ALK tokens will be minted and distributed to liquidity providers commensurate with their participation in pools.

Liquidity Mining Program

Details

Total ALK Token Supply

200,000,000

Total Reward Allocation

35.00%

Mining Program Duration

4 Years

ALK Rewards / Year (% of total supply)

8.75%

ALK Rewards / Year (#)

17,500,000

Number of Blocks / Year (Ethereum avg.)

2,102,400

ALK Rewards Issued Per Block

8.323820396

Supply & Distribution

The total supply of ALK tokens over 4 years is 200,000. Until public token issuance (TGE scheduled for July 2021, exact date TBA), 50% of this supply (100,000 ALK) will be allocated to core team, investors, prior backers and the founding entity. After TGE, remaining 50% (100,000 ALK) will be allocated to the liquidity mining program and the ecosystem fund for ongoing protocol development and network growth.

Allocations

Tokens

Percentage

Team & Advisors

40,000,000

20%

Prior Backers

20,000,000

10%

Investors

20,000,000

10%

Founding Entity Allocation

20,000,000

10%

Liquidity Rewards (post TGE)

70,000,000

35%

Ecosystem (post TGE)

30,000,000

15%

Total

200,000,000

100%