Stride is a new way of staking any IBC-compatible tokens on the Cosmos Blockchain. Stride lets users stake their tokens and get stTokens in exchange, which can be swapped back for the original token at a 1:1 ratio. By staking their tokens with Stride, users can earn staking rewards, while also keeping liquidity in the form of stTokens, which will enable them to access Cosmos DeFi and pursue more yields.
The Stride Token is the core governance token of the Stride Zone, allowing holders to vote on important decisions such as the allocation of staked tokens to each validator, the addition of new validators, and other protocol upgrades and improvements.
The Purpose and Design of the Stride Token
Stride’s goal is to serve the Cosmos community by offering the best liquid staking possible. To achieve this goal, Stride has a simple design and credible neutrality; Stride has undergone several security audits and plans to use rate-limiting as a security feature; and Stride has an unmatched liquid staking user experience.
But another important thing is the Stride token. While not every crypto project needs its own token, in Stride’s case, a token is necessary.
The Stride tokenomics have been designed with three complementary outcomes in mind:
- Rapidly and effectively distribute Stride governance power across the communities Stride serves
- Facilitate social coordination to promote Stride liquid staking
- Build and maintain value for the ST token
The following tokenomics plan achieves these three outcomes, thereby contributing to Stride’s goal of serving the Cosmos community with the best liquid staking possible.
Token Distribution: Initial Supply
The Stride governance token is called ST. At the beginning, the supply in circulation is 9,200,000 ST.
However, this amount will not all be in circulation in practice. The Strategic Reserve will probably not be used for a while. Also, some of the airdrop amount is reserved for future airdrops to chains Stride connects with in the future.
Token Emissions: Incentives Distribution
The Stride governance token is called ST. Unlike other Cosmos blockchains, the Stride incentive pool is ready at launch, not emitted block-by-block. The Stride DAO, controlled by ST-holders, will decide how the incentive pool is distributed. However, to make ST emissions more predictable, there is an emissions quota that the DAO must meet in year one. The DAO must emit 20,000,000 ST over the course of year one, leaving 9,000,000 ST worth of incentives to be distributed in subsequent years.
A total of 31,000,000 ST, or 31% total supply, will be emitted as incentives.
Conclusion
Stride is a new way of staking any IBC-compatible tokens on the Cosmos Blockchain that offers users both staking rewards and liquidity. By using the Stride Token (ST), users can participate in the governance and decision-making of the Stride Zone, as well as benefit from the incentives and value creation of the token. Stride is a game-changer for the Cosmos community and the liquid staking space.
