🪙$LAIR

Lair Finance Tokenomics

Note: The tokenomics described here are subject to change and represent our current strategic approach at Lair Finance.

Overview

The LAIR token serves as the governance token for Lair Finance. We're committed to a gradual decentralization process, aiming to transition governance to the broader community over time.

LAIR Token Roles

  1. Voting on governance matters, including protocol parameter changes and contract upgrades

  2. Voting on validator selection for LSD-delegated tokens

  3. Participating in LaunchPad project selection and investment

  4. Utilizing protocol revenue for token acquisition and DAO treasury growth

Governance

Voting Mechanism

LAIR token holders must stake and vote-escrow their tokens to participate in voting.

Voting Weight System

  • 1 week: 0.05x

  • 1 month: 0.2x

  • 3 months: 0.5x

  • 6 months: 1x

  • 12 months: 2x

  • 24 months: 3x

Protocol Controller

Initially, BUGHOLE will act as the protocol controller. Voting for a new controller can be initiated at any time, triggering a DAO governance vote.

DAO Proposals

A minimum of 1 million VE (0.1% of total LAIR supply) voting power is required to submit a DAO governance proposal.

Contract Upgrades

The protocol controller will periodically initiate core contract upgrades and high-stakes parameter changes. These will be subject to a DAO governance vote and a timelock if approved.

Participation Incentives

We offer a range of incentives for governance participation, including token distribution to LSD participants, rewards for LaunchPad engagement, and community-driven initiatives that contribute to ecosystem development. These incentives aim to foster active involvement across all aspects of the Lair Finance ecosystem.

Value Accrual

  1. LSD stakers need to escrow LAIR tokens and participate in voting to influence validator selection.

  2. LaunchPad participants must stake LAIR tokens to vote on project selection and participate in investments.

  3. Lair Finance will use 50% of LSD revenue to buy back LAIR tokens from the market and burn a portion of them. The burn ratio and frequency will be determined by governance voting.

  4. Unburned tokens will be accumulated in the DAO treasury and invested in both internal and external ecosystem projects for the purpose of enhancing the value of both Lair Finance and KAIA.

We aim to keep emissions roughly in line with staking and other value accrual mechanisms to protect token value.

Tokenomics

  • Total Supply: 1 billion (hard cap)

  • Additional issuance: Not allowed

Long-term Vision

Lair Finance aims to build an ecosystem centered around LSD. By leveraging the LaunchPad to create value and invest both internally and externally, we aggregate and distribute Community Liquidity, thereby fostering the growth of the entire KAIA Mainnet ecosystem.

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