Exploring STON.FI Tokenomics: A Deep Dive into the Protocol’s Utility Token

Samiel Moses Edidem
3 min readMar 17, 2024

In the realm of decentralized finance (DeFi), the introduction of utility tokens plays a pivotal role in shaping the dynamics of a protocol. One such token making waves in the DeFi space is STON, the utility token of STONFi, intricately integrated into the core mechanics of the protocol. In this article, we’ll delve into the tokenomics of STON.FI, exploring its utility, governance mechanisms, deflationary model, and the path towards sustainable value creation.

Utility and Governance: Empowering Token Holders

At the heart of STON.FI lies the STON token, designed to serve as more than just a tradable asset. Beyond facilitating transactions within the ecosystem, STON token holders wield significant power in the governance of the protocol. Through long-term staking, holders can actively participate in decision-making processes, casting votes on key protocol upgrades, fee structures, and strategic initiatives. This democratized approach empowers stakeholders to shape the future direction of STON.FI, ensuring that decisions are aligned with the community's best interests.

Deflationary Model: Ensuring Scarcity and Value Appreciation

One of the defining features of the STON token is its deflationary model, engineered to instill scarcity and drive value appreciation over time. Unlike traditional inflationary models, where token supply may inflate indefinitely, STON.FI adopts a more sustainable approach. The token supply is capped at the initial minting stage, and the STON minter smart contract prohibits the minting of additional tokens in the future. Moreover, STON tokens are systematically burned over time, reducing the total supply and enhancing scarcity. This deflationary mechanism creates a built-in incentive for token holders to stake and hold their tokens, fostering a culture of long-term investment and value preservation.

DAO Governance: Facilitating Community Consensus

In addition to governance through staking, STON.FI embraces decentralized autonomous organization (DAO) principles to govern the allocation of additional utility to STON token holders. The process involves community-driven proposals and voting, where stakeholders collectively decide on matters such as fee reduction mechanisms and other value-added features. This transparent and democratic governance framework ensures that the interests of all participants are taken into account, fostering a sense of ownership and collective responsibility within the community.

Token Allocation

  • Private sale: 10%, locked for 1 year and linear vesting for 2 years.
  • Advisors: 5%
  • Team: 14%, 2 year lock and linear vesting over 3 years.
  • Pre seed: 21%, 12 month lock and linear vesting over 2 years.
  • Operations: 10%, 4.000 tokens available and 6.000 tokens awarded over 5 years.
  • Marketing; 10%, 2.000 tokens available and 8.000 tokens awarded over 3 years.
  • Incentives: 10%, linear vesting over 5 years.
  • DAO treasury: 20%, staked for 24 months, then partially opened and used at the discretion of the DAO.

Tokenomic

  • Token name: STON.fi
  • Symbol: STON
  • Contract: EQA2kCVNwVsil2EM2mB0SkXytxCqQjS4mttjDpnXmwG9T6bO
  • Blockchain: TON
  • Total supply: 100.000.000 STON
  • Maximum supply: 100.000.000 STON
  • Circulating supply: 1.000.000 STON

How to make money on STON.fi

Swap: Instantly swap tokens at the best price.
Earn: Provide liquidity and collect a portion of transaction fees.
List: TON-based tokens of users.

Conclusion: Paving the Way for Sustainable Growth

In conclusion, the tokenomics of STON.FI exemplify a holistic approach towards sustainable growth and value creation. By integrating utility, governance, and deflationary mechanisms, STON.FI lays the foundation for a robust ecosystem where stakeholders are incentivized to actively participate and contribute to its success. As the protocol evolves and matures, the STON token will continue to play a central role in shaping its trajectory, driving innovation, and unlocking new possibilities in the world of decentralized finance.

Official Links

Website: https://ston.fi/

X/Twitter: https://twitter.com/ston_fi

Reddit: https://reddit.com/r/STONFi

Discord: https://discord.com/invite/bdmaGV6qUư

Telegram: https://t.me/stonfidex

--

--

Samiel Moses Edidem

A man who loves God || Brand Ambassador || Content Creator || Blockchain Enthusiast