Tokenomics

Locale Tokenomics Framework

Locale Reserve Currency - Network/Governance Token:

USDL is a stablecoin backed by a diversified basket of stable assets, providing a foundation of value and stability. It will act as the network token handling the “gas” mechanics of the Locale Network, as well as queries to the zk-data marketplace dApp.

It will also serve as the governance token, allowing holders to participate in network decisions such as protocol upgrades, treasury management, and community initiatives. The reserve is managed transparently, with regular audits and reports available to the community by Brale.

Automatic Rebasing and Yield Distribution

Yield Distribution via Smart Contract:

Once new USDL tokens are minted, they are sent to a designated smart contract responsible for yield distribution. The smart contract automatically calculates the share of newly minted tokens for each holder, including individual users and the wallets collateralizing stablecoins. The allocation is based on the percentage of the total USDL supply each wallet holds, ensuring a fair distribution of the yield generated.

The rebase activation is triggered when tokens enter the yield distribution smart contract, ensuring that the rebase mechanism operates transparently and efficiently.

Inclusive and Equitable Yield Distribution:

The distribution mechanism is designed to be inclusive, providing benefits to all participants in the network equitably, including smaller holders. This system encourages more widespread and active participation within the Locale Network, retention of both LUSD and the local currency fostering a sense of ownership and community engagement.