Emissions
How and when do new DIKO tokens enter circulating supply?
Arkadiko releases a pre-set amount of DIKO rewards every two weeks, which is the length of a proof of transfer cycle.
Initially, the rate at which new DIKO are rewarded the protocol contributors is very high. Every two week, the amount of DIKO released decreases by 2 %.
After five years, the protocol targets a 2% yearly inflation rate.
Reward Sinks
From the total amount of weekly emissions, several Reward sinks are chosen to which these new tokens will flow, decided by governance according to the protocols needs.
DIKO emissions should be carefully crafted to incentivize the right kind of liquidity in the Stacks DeFi ecosystem.
Current reward sinks are: stDIKO: 20%
DIKO-USDA: 25%
STX-USDA 35%
STX-DIKO: 10%
Liquidation Pool: 10%
Governance regularly revises the reward sinks to make sure they are still maximally benefiting the protocol. An initial prognosis was created as the start of the protocol in the following graphic, but due to changes in reward weights, is no longer completely accurate:
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