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Deep Dive Into STBL Tokenomics

Tokenomics​

$STBL is the governance and value-accrual token of the STBL ecosystem. It aligns the protocol’s growth with its community by giving holders both decision-making power and a share in the value created by the system.

Where USST delivers stability and YLD captures yield, $STBL ensures that value flows back to the community that powers the protocol.

Token Utility and Core Functions​

Governance and Security: $STBL holders govern key parameters such as collateral onboarding, protocol fees, and treasury operations. As the network evolves toward its app-chain phase, $STBL will also secure the network through validator staking.

Revenue Capture and Distribution: The protocol captures fees on USST mints/burns and applies ongoing protocol fees on YLD tokens. These revenues flow to an on-chain treasury and are recycled through Premium Buybacks, burns,Multi Factor Staking rewards, and governance incentives, creating a self-reinforcing cycle where growth directly benefits the community.

Multi Factor Staking (MFS) and Premium Buybacks: MFS rewards long-term participants who lock $STBL and co-lock USST, while Premium Buybacks periodically repurchase $STBL above market price and burn it, introducing deflationary pressure and strengthening governance alignment.

Token Supply and Allocation​

The total supply of STBL is capped at 10,000,000,000 tokens (10 billion), ensuring predictability and preventing uncontrolled inflation. At the Token Generation Event (TGE), the circulating supply is approximately 700,000,000 tokens, representing 7% of the maximum supply. The comprehensive allocation framework is organized into five strategic categories that balance immediate operational needs with long-term protocol development:

Foundation (25%): 2,500,000,000 tokens

  • Treasury (15%): 1,500,000,000 tokens allocated for protocol treasury management and future strategic funding rounds. This allocation features 45% available at TGE with linear vesting over the following 12 months, ensuring operational flexibility while maintaining controlled token circulation.
  • Liquidity & Market Making (10%): 1,000,000,000 tokens ensuring adequate market liquidity, with 4% available at TGE and linear release over 12 months to support healthy price discovery while preventing excessive volatility.

Core Development (36%): 3,600,000,000 tokens

  • Team (20%): 2,000,000,000 tokens assigned to the founding team and core contributors, subject to a 12-month cliff period followed by 5% release after cliff and linear vesting over 18 months. This extended schedule ensures sustained commitment to long-term protocol development.
  • Advisors (5%): 500,000,000 tokens allocated to strategic advisors and industry experts, with a 12-month cliff and 5% release after cliff followed by linear vesting over 18 months.
  • Ecosystem Development (11%): 1,100,000,000 tokens dedicated to ecosystem growth and adoption, with 10% available at TGE and linear distribution over 12 months. These tokens support developer incentives, integration partnerships, and community building initiatives.

Staking (20%): 2,000,000,000 tokens

  • Staking: Reserved for staking rewards and emissions over the period with a 6-month cliff followed by linear distribution over 18 months. This allocation supports protocol security through sophisticated emission mechanisms including bootstrap, staking-driven, and terminal emissions.

Private Sale (15%): 1,500,000,000 tokens

  • Private Sale 1 (Previous Round) (12%): 1,200,000,000 tokens representing early investor allocation with a 12-month cliff and 5% release after cliff, followed by linear vesting over 18 months, ensuring long-term commitment from early stakeholders.
  • Private Sale 2 (Upcoming round) (3%): 300,000,000 tokens representing the upcoming private funding round with a 6-month cliff and 0% release after cliff, followed by linear vesting over 12 months.

Community (4%): 400,000,000 tokens

  • Public Distribution (4%): 400,000,000 tokens supporting broad community participation through public sales, with a 3-month cliff followed by linear vesting over 6 months after cliff.

Value Accrual Flywheel​

The tokenomics design creates a self-reinforcing value accrual flywheel that ties protocol activity directly to community value:

  1. More RWA collateral and USST minting expand protocol AUM.

  2. Higher AUM generates greater fee revenue.

  3. Revenues fund Premium Buybacks and Multi Factor Staking rewards.

  4. Buybacks reduce circulating supply, increasing $STBL scarcity.

  5. Scarcity and aligned rewards attract more participants and collateral, reinforcing the cycle.

This loop is governed transparently through on-chain parameters such as protocol fee share, buyback allocation, burn ratio, and emission schedules, allowing governance to fine-tune sustainability as the ecosystem evolves.

Together, these mechanics ensure that $STBL remains the cornerstone of protocol governance and value capture - powering incentives, aligning stakeholders, and upholding STBL’s core principle of separating stability (USST) from yield (YLD) to create a transparent, community-driven Real World Asset ecosystem.