Tokenomics and Vote-Escrow (ve) Utility
The SuDAO token is more than just a governance token – it’s a utility token that incentivizes participation and aligns users with the long‑term success of the protocol. Here’s what SuDAO offers.
Governance Power
By holding SuDAO, you can vote on proposals directly or via delegation. Each token equals one vote, but StableUnit amplifies influence through the vote‑escrow (ve) model:
Lock SuDAO for 1 week up to 4 years.
Receive veSuDAO, an on‑chain representation of voting power.
Longer locks → more veSuDAO per token (e.g., locking 100 SuDAO for 4 years might yield 100 veSuDAO; 1 year ≈ 25 veSuDAO).
While locked, SuDAO can’t be transferred or sold; at expiry you reclaim the tokens (after any waiting period).
Governance counts veSuDAO, so time‑locked holders have proportionally greater say.
Why Locking Matters
Locking does far more than boost your vote:
Liquidation Rewards – the protocol selects the top 21 veSuDAO holders as its sole liquidators, granting each, in round‑robin order, a 60‑second exclusive window whenever a vault breaches its collateral threshold. During that window the designated keeper repays the debt via flash‑loan, closes the position, and receives an instant, fixed 2 % reward—no gas wars, no MEV bidding, no uncertainty. The result is a predictable revenue stream for committed lockers, a fully decentralized liquidation process, and continuous buying pressure on SuDAO from participants who wish to secure one of the 21 coveted slots. Learn more in Liquidations section.
Fee Discounts & LTV Boosts – The DAO can grant lower stability fees or higher borrowing limits to lockers (e.g., X % discount on interest or collateral‑ratio boost).
Gauge Influence – veSuDAO steers future emission “gauges,” letting lockers decide which pools or collateral types receive incentives.
Revenue Sharing – The DAO may divert part of protocol income, treasury surplus, or incentive tokens directly to veSuDAO holders (mirroring Curve’s veCRV model).
Future Perks – Possible priority access to new features, higher referral bonuses, and other benefits subject to governance votes.
ve‑Model in Practice
StableUnit’s adoption of Curve’s proven mechanism encourages long‑term commitment: to maximize benefits (liquidator status, gauge weight, voting power), users often choose the full 4‑year lock. Continuous locking reduces circulating supply even as new emissions arrive.
Liquidity & Trading
SuDAO will trade on DEXes and (potentially) CEXes, creating two natural classes:
Short‑term traders seeking price exposure.
Long‑term DAO members who convert to veSuDAO for governance and rewards.
Protocol Value Capture & Treasury Decisions
Currently, most direct fees go to USD Pro holders via yield. However, token holders govern the treasury and can:
Redirect surplus to buy‑and‑burn SuDAO,
Distribute dividends to veSuDAO lockers, or
Fund new growth incentives.
Such decisions require votes from both token and StableUnit NFT holders, balancing growth with value accrual.
Future Gauge System
Smart contracts already support a gauge framework similar to Curve’s: veSuDAO votes would allocate the 28 % incentive‑emission stream among pools like “ETH collateral,” “stETH collateral,” or “USD Pro‑DAI liquidity.” Gauge wars could emerge as other protocols acquire SuDAO to influence emissions—expanding governance utility and creating additional demand.
In essence, SuDAO token is the glue between the community and the protocol: it empowers users to govern, it rewards them for long-term commitment, and it enables critical functions (like liquidations). Its distribution plan attempts to balance various interests – early backers, users, builders, and the reserve for unforeseen needs.
Supply & Emissions
Total supply caps at 16 million SuDAO, emitted gradually over 4 years (no one‑time pre‑mint). As TVL and fee income rise, more users lock SuDAO for liquidator slots and gauge power, shrinking the effective float. The DAO can also buy‑and‑burn tokens or share surplus with lockers, adding organic price support.
Summary of the SuDAO token distribution:
Investors (seed/private backers)
19%
Lock-up: 6 months post-TGE (token generation event).
Liquidity Incentives & Ecosystem
28%
Emission: Minted over 4 years following a decay schedule (similar to Bitcoin’s halvings).
Development (Core team & future)
24%
Lock-up: 6 months.
DAO Treasury (Protocol reserves)
29%
Locked until $100M TVL milestone is reached.
All percentages above sum to 100% of the 16M supply. The DAO can vote to adjust these buckets if needed, but that would be a significant decision.
By having a large DAO Treasury allocation that is locked behind a growth milestone, StableUnit ensures that a significant chunk of tokens won’t hit the market or be misused until the protocol has proven traction ($100M TVL is a substantial benchmark). This acts as an implicit promise that the team/DAO won’t prematurely allocate those tokens; they are truly for later-stage growth or emergencies.