SAGE Tokenomics

Purpose of the Token

• The $SAGE token plays a pivotal role in Sage Markets, empowering holders to influence critical decisions regarding liquidity allocation, market making algorithms, and strategic deployment within Sage Markets' protocol-owned treasury.

Governance and Voting Mechanism

Voting Rights

• Owning $SAGE tokens grants one vote per token, enabling holders to impact decisions spanning from DeFi pool liquidity placement to CEX market making strategies, facilitated by open-source automated bots.

Voting Process

1. Proposal Submission: Proposals initiated by any $SAGE holder need to achieve a minimum support threshold to proceed to voting.

2. Voting Period: Defined timeframe for all $SAGE holders to participate in voting.

3. Enactment Period: Successful proposals are implemented for a three-month period, ensuring market stability and allowing for the assessment of strategic impacts.

Rewards Distribution for Active Governance Participation

• Exclusive rewards distribution to $SAGE holders actively participating in governance votes.

• Quarterly participation tracking is in place, with reward allocation based on the holder's proportion in the network's total voted amount.

Fee Structure and Distribution

Sage Council Fee

• Description: Sage Markets implements a 1% annual fee on the total treasury amount, assessed and paid quarterly. Upon the culmination of each quarterly enactment of strategies, one quarter of the annual fee is applied, aligning with the quarterly operational cycle. Additionally, a 15% fee is applied on the rewards generated at the conclusion of each quarterly allocation.

• Purpose: Support long-term sustainability, operations, and maintenance of Sage Markets by aligning its elected DAO Council with DAO members for long-term growth. If the DAO Council changes in future, its new council members are rewarded with the Council Fee.

Buy and Burn Fee

• Description: Consistently, 15% of the rewards generated at the end of each quarterly allocation are designated for the buy and burn of $SAGE tokens, specifically targeting the DEX pool with the largest amount of liquidity for SAGE.

• Impact: This mechanism supports a deflationary approach for $SAGE.

Rewards Distribution to Active Voters

• Description: The remaining 69% of the rewards are distributed to $SAGE holders who actively participated in the most recent quarterly allocation vote. The distribution is proportional to each holder's personal stake in relation to the total holdings represented in the vote.

• Goal: To encourage active governance participation among $SAGE holders, aligning their interests with the success of the collectively deployed Sage strategies via decentralized governance. In other words, rewards are only distributed to holders who make active effort.

$SAGE Token Vesting and Distribution Overview

Total Supply

• 100 Million $SAGE Tokens

Allocation Breakdown

1. Private Sale: 25% (25 million $SAGE tokens)

   • Vesting Adjustment: 10% released on TGE, followed by a 22.5% release every 3 months thereafter.

2. Public IDO (Initial DEX Offering): 30% (30 million $SAGE tokens)

3. Founding Team and Advisors: 15% (15 million $SAGE tokens)

   • Vesting Adjustment: No tokens released at launch. 25% every 6 months for a total of 24 months.

4. Partnerships and Community Incentives: 20% (20 million $SAGE tokens)

   • Vesting Adjustment: 10% released on TGE. 22.5% release every 3 months thereafter.

5. DAO Treasury: 10% (10 million $SAGE tokens)

   • Locked. Only unlocked for successful governance proposals to fund value-added proposals.