Phase 1 — The Inflationary Phase
The first 1.8 years will constitute the inflationary phase. At this time, APRs will be established using emissions with the primary objective of strengthening the Treasury, rewarding token holders, and increasing liquidity so that the AMM DEX functions efficiently and earns additional yields through swap and mint fees. The Treasury will also receive an allocation of emissions to ensure continual growth and aid in the over-collateralization of the platform as a whole - thus allowing for our secondary expansion phase into derivative-based investments. See the Treasury Section for more.
Emissions will be allocated using the following weights:
  • 50% will be allocated to the Bond portion of the platform. These tokens will be distributed per the block rate — rather than minted during the purchase cycle. This will promote continual flows of bond purchasers while also maintaining the scarcity and scalability of ISA. As such, inflation is mitigated until there is the appropriate TVL to utilize the introduction of these additional tokens. Of these emissions, 11% will be diverted to single staking to help minimize investor dilution.
  • 15% will be allocated to the Treasury, which will help stabilize the market rate of ISA, provide continual Treasury growth, aid in our expansion into the fusion of Traditional Finance and Crypto, and allow us to expand cross-chain quickly. In part, yields from this allocation will be what provides the initial attractive APRs on new chains.
  • 25% of emissions will be allocated to the development team to cover legal, expansion, registration, and compliance fees. This fund will also allow ethereal to become a market maker itself, to further deepen liquidity for products on the platform. It will also allow for the continual development of sythetic assets on the platform.
  • 10% will be directed to Rho as part of the fixed income portion of its return. Once emissions are completed, a portion of all platform fees will be diverted to Rho as a substitute. Depending on protocol performance, this percentage can be higher than 10% to ensure robust returns.
Phase 2 — The Consolidation Phase
The consolidation phase will begin after emissions have ended. At this point, the Treasury will be fully self-sustaining through various outside investment strategies such as stable lending and, more importantly, the derivative-based Hedge Fund portfolio. In addition, the Treasury would be continually reinforced through trading and mint fees collected on the platform. This combination will allow for a gradual and continued increase of the floor price of ISA through buybacks at a specific and trailing variable price. For context, if the Treasury achieved a 1B TVL the estimated yearly profit generation sits at roughly 150m - 250m. As a result of the completed emissions, these yields will have a direct and increasing effect on the floor price.
Phase 3 — The Deflationary Stage
With emissions having been completed and a robust and dynamic Treasury investment model in place that continually buys back ISA, the price of ISA will constantly rise as more of the supply is removed from circulation. In effect, token holders become a type of shareholder of the whole ecosystem and will receive continual earnings from these Treasury yields.