FLASH NOTE - Tokemak: Updated Emissions Model and the Introduction of accTOKE

On May 24, Tokemak announced a new TOKE emissions model for both Liquidity Directors (LDs) and Liquidity Providers (LPs). The change comes in an effort to better align ecosystem participants with the long-term goals of Tokemak and discourage self-interested yield farming. This move follows a previous decision to eliminate emissions for Uniswap ETH-TOKE LPs entirely, based on the claim that these LPs were the source of significant TOKE sell pressure.

In addition to adjusting their emissions model, Tokemak provided more detail on their vote-escrowed TOKE model. accTOKE (formally referred to as pAssets) is designed to accelerate the growth of Protocol Controlled Assets (PCAs) and achieve the ultimate goal of Singularity. For a refresher, Tokemak’s asset profile is here and our first research piece is here.

Liquidity Directors - Revenue Factor

Variable Definitions:

• (i) = defines the specific reactor, denoted as i-th reactor
• ld(i) = is the % of overall LD assets in i-th reactor