10. SURF Token Utility & Tokenomics
SURF Utility
The Surf Token (SURF) is built to have simple and effective utility. The purpose of holding the token is to give value back to token holders from success of the protocol, mostly including fees from protocol revenue.
There are no emissions for the SURF token, and 100% of protocol revenue goes to either liquidity providers or SURF stakers.
Staking: SURF holders can stake their tokens and earn a percentage of protocol fees.
Governance: SURF holders can participate in the protocol’s governance, voting on important decisions such as upgrades, new feature implementations, and changes to fee structures.
Collateral: Use SURF as collateral to have access to a higher liquidation buffer for enhanced protection. For example, you can only be liquidated at a health factor of 1.0, as opposed to the standard 1.10 for normal users, potentially giving users an edge in sharp price moves and thinner liquidity markets.
Pool Creation: Gone are the days of arduous governance procedures to spawn new lending markets. Any user holding a pre-determined amount of SURF will be able to spin up lending markets for a one-time fee. Creators will be able to earn a percentage of all interest paid in their pools, while the spawn fee is split between the DAO treasury and a burn address, adding steady deflationary pressure to SURF. By democratizing market creation and eliminating lengthy governance process, teams of any size can rapidly deploy pools for niche tokens, short-selling strategies, event-driven vaults, and other experiments, with systemic risk contained within each standalone market.
Tokenomics
SURF is the platform token for the Surf protocol. There are a total of 25 million (25,000,000) SURF tokens. The allocation for SURF is detailed below from largest to smallest:
Public Sale: 68% (17,000,000 tokens)
Team and Advisors: 15% (3,750,000 tokens)
Liquidity: 12% (3,000,000 tokens)
DAO: 5% (1,250,000 tokens)
The total public allocation is 85%, with 15% for team and advisors.
The distribution is as follows:
Tokenomics Chart
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Emissions
Emissions are simple and easy to understand. There will be 80% of tokens initially in circulation (public + liquidity). The additional 15% from team allocation will be fully unlocked after 24 months (full details below) for a circulating supply of 95%, and the final 5% (DAO treasury) will be decided by community members at a later time.
Vesting
DAO vesting will be entirely up to the voting of SURF holders. This can be used for anything the community sees fit such as incentives, initiatives, funding future development, etc.
Team vesting is simple. Starting from the token generation event, there is a 6 month period where there are no unlocked tokens. After that, tokens will unlock linearly monthly over the span of 18 months, for a total of 24 months or 2 years vesting from the TGE.
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