The Stone token (“STN”) is the native utility token of Stone Protocol, whichacts as the central part of the incentive structure of Stone DeFi ecosystem andinterests of all ecosystem participants.
STN token is the governance token that will play a crucial role in the Stone ecosystem. STN’s primary function is for protocol governance and it is further empowered to reward liquidity provision during the bootstrapping (each pool would have its dedicated STN rewarding scheme to build up sufficient size) and more interestingly, STN will be used to incentivize portfolio rebalancing (for example, STN reward may be higher for certain pool to attract more funds there in order to maximize yield farm), pay transfer fees for the cross-chain execution and act as the security deposit to safeguard funds in the liquid staked assets.
Stone Protocol will be governed through a DAO structure, with STN tokens representing voting rights including.
- 1.transactions fees
- 2.inflation reward
- 3.inflation distribution ratio
- 4.asset pool allocation
- 5.new asset addition
- 6.whitelist/approval of new asset pools and strategies.
This highlights some possible governance aspects, and we will adopt the community approach to conduct the protocol governance in an open and transparent framework.