Overview
Token Supply
1 billion STRIKE tokens distributed over 10 epochs
Distribution Method
Epoch-based with doubling difficulty thresholds
Earning Mechanism
Real-time accumulation while positions are open
Claiming
On-demand claims to user wallets
Token Contract
STRIKE is a standard ERC-20 token deployed on Monad Testnet:The entire 1 billion token supply is minted at deployment and held by the protocol controller wallet for distribution.
Epoch System
10 Epochs with Doubling Thresholds
The STRIKE distribution is divided into 10 epochs, each allocating 30 million tokens. Epochs progress based on trading volume with doubling thresholds.Understanding Base Notional: The base notional threshold represents the position size required to earn the full epoch allocation (30M tokens) when trading at 1000x leverage for 21 days (3 weeks). Lower leverage or shorter hold times earn proportionally less.
Epoch | Tokens Allocated | Base Notional Threshold* | Cumulative Tokens |
---|---|---|---|
1 | 30M | $40M | 30M |
2 | 30M | $80M | 60M |
3 | 30M | $160M | 90M |
4 | 30M | $320M | 120M |
5 | 30M | $640M | 150M |
6 | 30M | $1.28B | 180M |
7 | 30M | $2.56B | 210M |
8 | 30M | $5.12B | 240M |
9 | 30M | $10.24B | 270M |
10 | 30M | $20.48B | 300M |
1
Early Epochs
Epochs 1-3: Easy to complete, bootstrap early adopters with generous rewards
2
Growth Epochs
Epochs 4-7: Moderate difficulty, sustainable distribution as protocol grows
3
Mature Epochs
Epochs 8-10: High thresholds for long-term protocol sustainability
Epoch Progression
An epoch automatically transitions to the next when the total tokens earned across all positions reaches the 30M allocation:Epoch progression is automatic and irreversible. Once an epoch completes, no new tokens can be earned in that epoch.
Token Calculation Formula
The Linear Formula
Tokens are calculated using a linear formula that rewards:- Larger positions (higher notional value)
- Higher leverage (up to 1000x)
- Longer holding periods (measured in days)
Formula Components
- Notional Position
- Leverage Factor
- Time Factor
- Base Notional
Position Size in USD
szi
: Signed size (positive for long, negative for short)- Higher notional = more tokens
- Scales linearly with position size
Calculation Examples
Example 1: Early Epoch, High Leverage
Example 1: Early Epoch, High Leverage
Scenario:Result: ~2,500 tokens after 1 week
- Epoch: 1 (base notional = $40M)
- Position: $10,000 notional
- Leverage: 1000x
- Days open: 7 days
Example 2: Later Epoch, Lower Leverage
Example 2: Later Epoch, Lower Leverage
Scenario:Result: ~234 tokens after 3 weeks
- Epoch: 5 (base notional = $640M)
- Position: $50,000 notional
- Leverage: 100x
- Days open: 21 days
Example 3: Maximum Efficiency
Example 3: Maximum Efficiency
Scenario:Result: 750K tokens (2.5% of epoch allocation)
- Epoch: 1 (base notional = $40M)
- Position: $1,000,000 notional (large trader)
- Leverage: 1000x (maximum)
- Days open: 21 days (full period)
Real-Time Token Accumulation
Background Calculation Service
Tokens accumulate in real-time while positions are open. A background service runs every 10 seconds to update token balances:Token calculations are deterministic and verifiable. The same inputs always produce the same output, ensuring fair distribution.
Position Lifecycle
1
Position Opened
- Token reward record created in database
- Initial
tokens_earned = 0
opened_at
timestamp recorded- Position added to calculation queue
2
Position Active
- Background service calculates tokens every 10 seconds
- Tokens accumulate based on formula
- UI shows real-time balance updates
- No gas costs for accumulation
3
Position Closed
- Final token calculation performed
tokens_earned
becomes final total- Tokens move to
tokens_settled
(claimable) - Position removed from active queue
4
Tokens Claimed
- User initiates claim transaction
- Atomic database update + blockchain transfer
- Tokens sent to user’s wallet
tokens_claimed
recorded permanently
Token Claiming
Claiming Mechanism
Users can claim their settled tokens (from closed positions) at any time:Claiming Safety Features
Atomic Claims
Database procedure ensures no double-claiming even under race conditions
Settled Only
Only closed position tokens can be claimed, preventing premature claims
On-Chain Verification
Every claim includes blockchain transaction proving token transfer
Audit Trail
Full claim history recorded with timestamps and transaction hashes
Claim States
State | Description | Can Claim? |
---|---|---|
Earning | Position is open, tokens accumulating | ❌ No |
Settled | Position closed, tokens finalized | ✅ Yes |
Claimed | Tokens transferred to wallet | ✅ Already claimed |
Database Schema
Token Rewards Table
Atomic Claim Procedure
Security & Fairness
Fair Distribution Guarantees
1
Deterministic Formula
Same inputs always produce same outputs - no randomness or favoritism
2
Time-Based Accumulation
Longer holds earn proportionally more - rewards commitment
3
Leverage Weighting
Higher risk (leverage) earns more - fair risk/reward ratio
4
Epoch Boundaries
Clear thresholds prevent manipulation of distribution timing
Anti-Abuse Measures
No Double Claiming
Atomic database procedure prevents claiming the same tokens twice
Settled-Only Claims
Open positions cannot be claimed, preventing premature withdrawals
On-Chain Verification
All transfers verified on blockchain, creating immutable audit trail
Position Validation
Only real trading positions earn tokens, not fake records
Precision & Rounding
All token calculations use Decimal arithmetic with ROUND_DOWN to prevent over-allocation:Integration with Trading
Position Creation
When a trader opens a position, the token reward system automatically:- Creates token reward record with initial state
- Records epoch number, notional, leverage
- Sets
opened_at
timestamp for time tracking - Adds position to calculation queue
Position Closure
When a position closes, the system:- Performs final token calculation
- Moves tokens from
tokens_earned
totokens_settled
- Records
settled_at
timestamp - Removes from active calculation queue
UI Display
The frontend shows real-time token balances:- Active Positions: Shows accumulating
tokens_earned
(updates every 10s) - Closed Positions: Shows final
tokens_settled
amount - Claim Button: Enabled when
tokens_settled > tokens_claimed
API Endpoints
Get Token Balance
Claim Tokens
Token Economics
Distribution Timeline
Based on current testnet activity, estimated epoch completion times:Epoch | Threshold | Est. Completion | Cumulative Distribution |
---|---|---|---|
1 | $40M | 1-2 months | 3% |
2 | $80M | 3-4 months | 6% |
3 | $160M | 6-8 months | 9% |
4-6 | 1.28B | 1-2 years | 18% |
7-10 | 20.48B | 3-5 years | 30% |
Note: Only 300 million tokens (30% of total supply) are distributed through the epoch system. The remaining 700 million tokens are reserved for:
- Team allocation
- Treasury reserves
- Future incentive programs
- Strategic partnerships
Value Accrual
STRIKE token value accrues through:- Governance Rights: Future DAO governance over protocol parameters
- Fee Discounts: Reduced trading fees for STRIKE holders
- Staking Rewards: Stake tokens to earn protocol revenue share
- Scarcity: Fixed 1B supply with decreasing emission rate
Future Enhancements
The STRIKE token rewards system is designed to evolve with the protocol. Planned enhancements include:Loss Cashback Mechanism
Coming Soon
Additional token bonuses for losing trades to improve trader retention and reduce churn during difficult market conditions.STRIKE tokens may offer bonus distributions to traders who experience losses, ensuring even unsuccessful traders receive protocol value and incentivizing continued participation. For example, traders could receive bonus tokens proportional to their realized losses (e.g., 0.5 tokens per dollar lost).This creates a more sustainable ecosystem where traders are rewarded for activity regardless of P&L outcomes.
Treasury-Based Bonus Emissions
Under Consideration
Increased token emissions during low-liquidity periods when treasury reserves are constrained and payout reliability is uncertain.During periods when the protocol treasury is below optimal levels or when payout processing faces uncertainty, bonus STRIKE token emissions could compensate traders for elevated risk. This mechanism would:
- Automatically adjust based on treasury health metrics
- Provide additional compensation when system risk is higher
- Maintain trader confidence during protocol growth phases
- Create natural economic incentives to participate during bootstrapping periods
Note: These features are in planning stages and not yet implemented. Token economics and distribution formulas are subject to change based on protocol governance and community feedback.
Best Practices for Traders
Maximizing Token Earnings
Hold Longer
Tokens accumulate over time - longer holds earn more
Use Leverage
Higher leverage positions earn tokens faster (up to 1000x)
Size Matters
Larger positions earn proportionally more tokens
Early Epochs
Earlier epochs have lower thresholds, easier to earn
Strategic Timing
- Early Epochs (1-3)
- Mid Epochs (4-7)
- Late Epochs (8-10)
- Easiest to earn with low base notional
- Best time for smaller traders to accumulate
- Higher percentage of epoch allocation per position
Summary: The STRIKE token system rewards active traders with a fair, deterministic, and secure distribution mechanism. Tokens accumulate in real-time based on position size, leverage, and hold time, with automatic epoch progression ensuring sustainable long-term distribution.