๐Ÿ’ŽTokenomics

The Core Value-Capturing Token of the SIR Protocol

SIR holders can stake their tokens to earn a share of protocol fees. All fees are converted to ETH through an auction system and distributed to stakers, providing a direct claim on the protocol's revenue.

The SIR protocol features a carefully designed token economy that aligns incentives across all participants while ensuring long-term sustainability. This section explores how the three-token system works together to create a self-reinforcing ecosystem.

Overview

At its core, SIR solves a fundamental DeFi challenge: how to sustainably incentivize liquidity while capturing value for token holders. The protocol achieves this through:

  • Three specialized tokens (SIR, TEA, APE) each serving distinct roles

  • Permanent liquidity accumulation through protocol-owned liquidity

  • Constant token emission ensuring fair opportunity for all participants

  • Mathematical optimization for efficient capital allocation

Section Contents

  • Flexible Operations: Stake, unstake, and claim dividends at any time

  • ETH Dividends: All protocol fees are converted to ETH via auctions for consistent payouts

  • Pro-rata Distribution: Rewards proportional to your staked share

Explore the three-token ecosystem from a business perspective. Understand how APE traders, TEA providers, and SIR holders interact to create value, and why constant issuance beats traditional capped supply models.

Detailed breakdown of how SIR tokens are allocated during the bootstrap phase (years 1-3) and the transition to 100% liquidity provider rewards thereafter.

Getting Started

New to SIR? Start with the Economic Model to understand the big picture, then explore SIR Token Mechanics for technical details on staking and rewards.

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