Governance & Tokenomics

The Tokr protocol will follow a progressive decentralization model. Tokr Labs will begin with centralized control of Tokr DAO and the Tokr Protocol, and over time, will transition to complete community and stakeholder control. Building on the SPL governance model and implementing custom purpose-built programs, the Tokr protocol will be governed by Tokr DAO.

Tokr DAO is permissionless to join, its governance token will be implemented using a vote escrow token (veToken) model that will be made available to the community. Governance tokens will be valueless, with no economic benefit or right to cash flows. However, members of the DAO that hold governance tokens will be able to propose and execute changes and complete upgrades to the protocol if sufficient approval votes are met. Early on, changes to the protocol will require steep quorums to mitigate execution risk and rogue actors. This quorum will be relaxed over time as Tokr DAO and the Tokr protocol have demonstrable decentralization and the protocol becomes hardened through use.

The Tokr governance token will play a utility role in executing the protocol’s programs, facilitate decentralized governance, and incentivize adoption (e.g. liquidity mining, staking). When implemented, Tokr’s governance token will be used as a form of payment in the rNFT certification process, which will require payment to Tokerize rNFTs and check for certification when originating debt or equity financing.

Early members of the Tokr community will play an important role in shaping the token go to market strategy once the protocol has achieved sufficient adoption and decentralization for utility of the token.