Governance Token of the Arkadiko Protocol


  • 100 000 000 tokens minted.

    • 21 % Team -- 4 year vesting with monthly unlocks after a 6 month cliff.

    • 4 % Strategic raise -- Small private sale to key investors with clear value add. Same vesting as team tokens.

    • 25 % Arkadiko Foundation Treasury -- Locked tokens held by the foundation. Governance decides where to spend or use these tokens. To be used for promoting and advancing the protocol. Catches future token needs that can not be conceived right now. Locked unless governance decides to spend them.

    • 50% Ecosystem reward pool -- Arkadiko tokens are emitted according to the emission schedule as an incentive for users to provide liquidity to the protocol.

DIKO serves as the Governance token of the Arkadiko Protocol. It is the main coordination mechanism that we use within the ecosystem. In theory, DIKO has no monetary value. All value assigned to DIKO tokens is secondary in nature and is an unintentional consequence of permissionless market creation.

DIKO's uses are 1) Governance Voting and 2) Security Module

Since Arkadiko is growing and evolving ecosystem and we want to involve the community as much as possible in its future direction, we will use a DAO-like governance model to decide on important decisions.

Security Module Staking DIKO holders have the option to stake their DIKO which converts their DIKO to stDIKO for the duration of the stake. They can always convert back and reclaim their original DIKO. stDIKO gives you a voting weight that can be used to vote on governance proposals.

The Security Module serves as a backstop to the protocol. Should a hack or exploit ever create ‘bad debt’ then up to 30% of DIKO tokens staked in the Security Module can be taken to be sold to cover this loss. Staking DIKO in the Security Module comes with the risk of losing up to 30% of your DIKO. In a way, stDIKO holders are providing a type of insurance against protocol losses. The decision to sell DIKO tokens from the Security Module is made through Governance, ensuring that the process follows the same consensus mechanism present throughout the protocol.

By participating in the Security Module by staking stDIKO, a user will be able to receive its fair share of proportionate protocol rewards. These rewards are automatically compounded through a relative price increase of stDIKO vs DIKO. When unstaking, users receive more DIKO than they initially staked, representing the accumulated yield and rewards:

stDIKO/DIKO = (DIKO staked + Rewards accumulated) / DIKO staked

stDIKO is constructed so that it can receive yield from multiple sources. At protocol launch, stDIKO receives rewards from standard protocol emissions. One of the main sources of protocol revenue comes in the form of the stability fee on USDA loans. We have included the option for the Arkadiko DAO to route a percentage of these stability fees to the stDIKO reward pools, effectively adding another source of yield for stakers in the Security Module.

It is also possible to become a liquidity provider (LP) for the DIKO token. You will then be adding an equal amount of DIKO and USDA to the liquidity pool of an Automated Market Maker in order to gain a share of the pool represented by pool tokens. These DIKO/USDA LP tokens can then be staked in the governance module to receive voting power and additional rewards.