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Strike implements a treasury-based rewards system that automatically adjusts as the protocol matures, combined with a loss cashback mechanism (ie. losing trades accrue more rewards than winning ones).

Money Flows

Rewards Emission Schedule

Rewards emission automatically adjusts based on protocol treasury size:
1

Phase 1: Growth Phase

Treasury < 3M USD: Maximum rewards to bootstrap liquidity
  • Attract early adopters
  • Boost treasury growth
  • Make sure profitable traders are paid
2

Phase 2: Transition Phase

Treasury 3M-10M USD: Linear decay in rewards
  • Gradual reduction as treasury grows
  • Balanced growth incentives to support larger size
  • Immediate settlement for profitable traders
3

Phase 3: Mature Phase

Treasury > 10M USD: Reduced rewards + $SLP buybacks
  • Sustainable long-term rate
  • Rewards existing traders via buybacks
  • Protocol financial stability