# Token Mechanics ### AAA & stAAA Token Overview The Arcadia ecosystem is powered by two core tokens: **AAA** and **stAAA**. Together, they provide governance, utility, and incentive alignment for all participants in the protocol. ## AAA – The Utility Token `AAA` is an ERC-20 token and the foundational utility token of the Arcadia protocol. It is designed to be **minimal, immutable, and not upgradeable**. This simplicity ensures that its contract address, total supply, and core properties remain constant throughout the life of the protocol. While `AAA` itself is a passive asset, **its full utility is unlocked by staking it to receive `stAAA`.** ## stAAA – The Governance & Reward Layer `stAAA` is the **staked version of AAA**, implemented as a multi-reward ERC-20 token. **stAAA is how users actively take part in Arcadia** — from governance to accessing protocol rewards and revenue streams. ### Key Features: * **Governance**: stAAA holders vote on proposals in the Arcadia DAO. * **Fee Sharing**: stAAA may receive a share of protocol revenue streams, not just emissions. * **Access**: Unlocks advanced yield strategies and ecosystem tools. * **Multi-Reward Stream**: Beyond `AAA` emissions, stAAA can receive any ERC-20 token captured by the protocol, such as periodic rewards through ecosystem grants. ### Why Not Only Use stAAA? The logic behind staking, governance, and fund distribution is likely to evolve over time. Rather than tying these mechanics directly to the token and relying on proxies or upgradable token contracts, Arcadia separates the roles: * **AAA** stays simple, fixed, and universally recognizable. * **stAAA** encapsulates all advanced features — and can evolve independently of the base token. This architecture ensures **future flexibility** without compromising **contract stability**. ## Staking & Unstaking * **1:1 Staking**: Stake `AAA` to mint `stAAA`. * **Standard Unstake**: 30-day waiting period to unlock your full `AAA` balance. You may queue multiple unstake requests at once. Each unstake request is independent of the others. An unstake request cannot be cancelled once it has been queued. * **Early Withdrawal**: Access `AAA` before the 30-day period ends, with a time-based dynamic penalty applied. The penalty starts at 90% and decreases linearly over the next 30 days to 0%. If multiple unstakes are queued, each individual unstake request will be subject to its own timeline and own penalty. This system balances long-term commitment with optional liquidity flexibility. ## Fee Sharing stAAA holders can be made eligible for a share of fees captured by various parts of the Arcadia ecosystem: * In **Arcadia Strategies**, this includes: * A portion of the interest paid by borrowers to lenders. * A portion of liquidation fees. * For **Arcadia tooling** (e.g. the Rebalancer or Compounder), specific fees can be redirected to stAAA holders. As protocol usage grows, these sources can generate a diversified and robust stream of rewards for stakers — in `AAA` and other ERC-20 tokens. ## Utility Highlights * **Delegation & Voting**: Active participation in shaping Arcadia’s future. * **Ecosystem Incentivization**: Real yield from actual protocol usage. * **Advanced Features**: Access to optimized strategies and tools on Arcadia Finance. * **Grants Program**: `AAA` supports ecosystem growth by funding third-party developers and integrations. ## Token Distribution | Category | Allocation (tokens) | Allocation (%) | Vesting Schedule | | ---------------- | ------------------- | -------------- | ----------------------------------------------------------------------------------------------------------------- | | Investors | 15,000,000 | 15% | 1 year vesting starting at TGE. All investors under the same schedule | | Treasury | 15,000,000 | 15% | Unlocked but subject to governance. Allocated for future strategic investors and long-term strategic initiatives. | | Core Team | 20,000,000 | 20% | 2 year vesting starting at TGE. | | Community | 50,000,000 | 50% | Gradual release over 3 years and subject to governance | | **Total Supply** | **100,000,000** | **100%** | - | ![Tokenomics v9.png](https://1842996165-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCZEtaA6yEHQp1bLQVU4p%2Fuploads%2Fgit-blob-f31f7a4f721d4fcae8881285df7b67c0815dfa96%2FTokenomics_v9.png?alt=media) **Community Breakdown** Airdrops (20%) * The first airdrop will have a 10% allocation, distributed to V2 users, as per their point allocation, and V1 users, as per their usage of the v1 protocol during the time it was live. * The DAO will decide on the remaining 10% airdrop allocation. Liquidity Provision (20%) * 5% for initial launch on aerodrome pool * 15% for a liquidity mining program **Contributors and grants (5%)** * Incentivize community participation in initiatives to grow Arcadia. * The DAO will oversee this allocation. **Public token sale (5%)** * Designed to give protocol ownership to the Arcadia community, enabling more participants to become Arcadia stakeholders. ## Supply Schedule ![AAA Final token emission model.png](https://1842996165-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCZEtaA6yEHQp1bLQVU4p%2Fuploads%2Fgit-blob-4a51cda5070f5e773ac35c4dbf69e5da822ef575%2FAAA_Final_tokem_emmission_model.png?alt=media) **At TGE** * 35% of supply in circulation **At Year 1** * Investors fully vested (15%) * Public sale (5%) * Core team partially vested (10%) * Liquidity mining releases (10%) * 75% of supply in circulation **At Year 2** * Core team fully vested (20%) * Additional 3% liquidity mining released (3%) * 83% of supply in circulation **At Year 3** * Final 2% liquidity mining allocation released during Year 3. * 85% of supply in circulation ❗The remaining allocation earmarked for airdrops and contributors/grants will be allocated by the DAO.