Incentives & Role

The tokenomics model is built to provide various incentives that encourage participation and investment from users:

  • Staking Rewards: Both SOLU and SOLLON holders can earn rewards by staking their tokens, which helps secure the network and adds to the tokens’ utility.

  • Governance Participation: SOLLON token holders are incentivized to participate in governance through potential rewards for voting and active engagement in DAO affairs.

  • Deflationary Mechanisms: Certain transaction fees or specific governance decisions could lead to token burns, which decrease the total supply of SOLLON, potentially increasing its value over time.

Tokenomics also play a crucial role in the overall stability of the Sollon DAO ecosystem:

  • Collateral Management: For SOLU, a robust collateral management system ensures that the stablecoin remains fully backed, enhancing trust and usability.

  • Risk Management: Advanced algorithms and governance decisions related to SOLLON distribution help manage systemic risks, safeguarding the ecosystem’s health.

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