SIKKA utilizes a two token system: SIKKA and IKKA.
- SIKKA is the USD-pegged stable asset used to pay out loans on the SIKKA Protocol. At any time it can be redeemed against the underlying MATIC collateral at face value.
- IKKA is the secondary token issued by SIKKA. It captures the fee revenue that is generated by the system and incentivizes early adopters and SIKKA holders. IKKA token is the Sikka Protocol's governance token, managing Sikka Revenue Pool distribution and IKKA token rewards.
The IKKA token will fulfills the following main functions:
- Utility token to boost SIKKA rewards for liquidity pool staking.
- Governance token on Sikka, governing the stability of the protocol and changes.
- Incentive for early adopters, providing revenue opportunities.
The SIKKA token will fulfills the following main functions:
- Means to gain IKKA, as it's minted for users when they borrow SIKKA.
IKKA is planned to be distributed the following way:
- 54% will be allocated for borrower incentives and other incentives.
- 10% will be allocated for a private sale.
- 10% will be incubated.
- 8% will be allocated for Polygon Studio/Launchpad.
- 8% will be allocated for the team and advisors.
- 8% will be allocated for Sikka staking and Liquidity Pool rewards.
- 2% will be allocated for the marketing team.
For more detail, see the picture of the allocation and initial distribution scheme below.