Token Mechanics

Tokenomics

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 receives 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.

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.

• Early Withdrawal: Access AAA before the 30-day period ends, with a time-based dynamic fee applied.

This system balances long-term commitment with optional liquidity flexibility.

Fee Sharing

stAAA holders are 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 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%	-

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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 + bribes

• 15% for a 3-year liquidity mining program:

  • Year 1: 10%

  • Year 2: 3%

  • Year 3: 2%

Contributors and grants (5%)

• Incentivizes 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 tokem emmission model.png

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.