What is the issuance and circulation of Stargate Finance (STG) coins?

Stargate Finance (STG) coins, with a capped total supply of 1 billion, facilitate asset transfers across multiple Layer 1 and Layer 2 networks, empowering STG holders to actively shape the protocol's future through staking, governance, and ecosystem development.

Nov 30, 2024 at 09:58 pm

What is the Issuance and Circulation of Stargate Finance (STG) Coins?

Stargate Finance (STG) is a Layer 2 blockchain protocol that facilitates seamless asset transfers across multiple Layer 1 and Layer 2 networks. STG coins are the native governance and utility token of the Stargate Finance ecosystem. This comprehensive guide delves into the intricacies of STG coin issuance and circulation.

Issuance and Allocation

1. Total Supply: The total supply of STG coins is capped at 1,000,000,000 (one billion) tokens. This predetermined limit prevents excessive inflation and maintains the scarcity value of STG.

2. Genesis Allocation: 250,000,000 (25%) of the total STG supply was allocated during the protocol's genesis launch in September 2021. This allocation was distributed as follows:

   • Liquidity Mining: 100,000,000 STG
   • Governance Pool: 50,000,000 STG
   • Team and Advisors: 50,000,000 STG
   • Ecosystem Grant: 50,000,000 STG
3. Token Vesting: The genesis allocation to the team and advisors underwent a multi-year vesting schedule to align their incentives with the long-term success of the project. The tokens were vested over a four-year period, with a six-month cliff, to prevent market manipulation.
4. Ongoing Issuance: No additional STG coins are issued beyond the genesis allocation. The scarcity of STG contributes to its value appreciation and ensures a sustainable token economics model.

Circulation and Distribution

1. Liquidity and Exchange Listing: A significant portion of the circulating STG supply is made available on major cryptocurrency exchanges, facilitating liquidity and accessibility for traders and investors.
2. Staking and Liquidity Mining: To encourage community participation and network security, Stargate Finance offers staking and liquidity mining incentives. By locking their STG tokens in designated pools, users can earn additional rewards and contribute to the protocol's ecosystem.
3. Governance and Protocol Upgrades: STG holders play a crucial role in shaping the future of the Stargate Finance protocol. Through the Stargate DAO (Decentralized Autonomous Organization), they can propose and vote on upgrades, network parameters, and operational decisions. This democratic governance model empowers the community to have a direct say in the project's evolution.
4. Treasury Management: Stargate Finance maintains a treasury composed of a portion of transaction fees and revenue generated from the protocol's services. These funds are used to support ongoing development, marketing initiatives, and ecosystem growth activities.

Conclusion

The issuance and circulation of Stargate Finance (STG) coins are carefully designed to ensure a stable, sustainable, and community-driven token ecosystem. With a predefined total supply, genesis allocation, and ongoing circulation mechanisms, STG maintains its value and aligns incentives with the long-term success of the Stargate Finance protocol. By empowering the community through staking, liquidity mining, and governance, Stargate Finance fosters a thriving ecosystem where users and token holders play an active role in its growth and governance.