Phase 2 Tokenomics (Ethereum L2 / Mainnet Launch)
Token: $SVY
Total Supply: 1,000,000,000 $SVY
| Category | Allocation | Purpose |
|---|---|---|
| SME Grants / Lending Pool | 35% | Direct funding for SMEs (stablecoins/ETH distributed from this reserve) |
| Community / Airdrops | 15% | Early supporters, MintMe holders, community incentives |
| Liquidity & Exchanges | 10% | DEX liquidity (Uniswap, etc.), CEX listings |
| Development Fund | 10% | Protocol dev, audits, tools |
| Staking Rewards | 10% | Incentives for staking $SVY during this phase |
| Treasury & DAO | 10% | Future decisions voted by DAO |
| Team & Advisors | 10% | With 1–2 year vesting |
Revenue Model
- SMEs pay back in stablecoins or $SVY (flexible)
- Protocol fee (e.g., 3–5%) collected from SME repayments
- Token buyback/burn or redistribution
Phase 3 Tokenomics (Restaking via EigenLayer)
Restaking adds new roles and yield sources. Here’s how tokenomics evolves:
Additional Allocation (Minted or Reallocated)
Let’s assume 10% additional inflation to support restaking incentives and security.
| Category | Allocation | Purpose |
|---|---|---|
| Restaking Rewards Pool | 7% | Distributed to restakers who opt into securing SME protocol |
| Validator Incentives | 2% | Incentivize AVS node operators validating SME protocol |
| Reserve / Slashing Fund | 1% | Safety mechanism for AVS misbehavior |
Restakers now earn $SVY tokens in exchange for:
- Restaking ETH (or LSTs) via EigenLayer
- Securing the $SVY protocol
- Participating in governance (optional)
New Token Utility
- Governance: Vote on SME selection, repayment terms, grant strategies
- Restaker Staking: Locking for voting power and yield
- Fee Discounts: SMEs or supporters paying fees in $SVY get discounts
- Impact NFTs: Optional gamified rewards for supporting real-world businesses
Sustainability Mechanism
- Protocol Fees:
- Collected from funded SMEs (e.g., 5% of repayments)
- Used to buy back and burn $SVY or fund staking pools
- Repayment Yield Sharing:
- Restakers and DAO treasury split a portion of repayment yield (denominated in ETH or stablecoins)
- Governance DAO:
- Treasury and grant allocation controlled via DAO proposals
- Token holders can vote using $SVY or delegated voting power
$SVY Hybrid Token Model
Total Initial Supply: 1,000,000,000 tokens
(At Phase 2 launch on Ethereum)
Phase 3: Inflation + Burn Hybrid Model
1. Controlled Inflation: Up to 2% annually
- Capped yearly increase to support:
- Restaking rewards
- Validator incentives
- Ecosystem grants
- Inflation is governance-controlled and based on milestones (e.g., SME funded, impact delivered)
2. Deflation via Burn Mechanics
- Buyback & Burn: A portion of protocol fees (in ETH or stablecoins) is used to buy $SVY from the market and burn it.
- Repayment Burn: Optionally burn a % of SME repayments made in $SVY (e.g., 1–2%)
Token Utility
| Utility | Description |
|---|---|
| Restaking Rewards | Distributed to ETH stakers opting into $SVY AVS via EigenLayer |
| Governance Voting | Token holders vote on protocol updates, SME selection, treasury allocation |
| Protocol Fee Discount | SMEs or investors paying in $SVY get lower platform fees |
| Staking for Yield | Stake tokens to earn more, unlock DAO voting power |
| Impact NFT Access | Optional: earn collectible badges/NFTs based on funding impact or loyalty |
Sustainability and Balance
| Mechanism | Inflationary or Deflationary | Details |
|---|---|---|
| Protocol Reward Emissions | Inflationary | Up to 2% annual increase for stakers/restakers |
| Token Burns from Fees | Deflationary | Buybacks from protocol revenue |
| Burn from Repayments | Deflationary | Optional % burned if SMEs repay in $SVY |
| DAO Treasury Cap | Neutral | Fixed cap on governance treasury to avoid inflation abuse |