Lesson 4

Tokenomics of Saros (SAROS)

This module explains how the SAROS token works inside the Saros platform. It covers what the token is used for, how the supply is distributed, how the release schedule is structured, and how the overall economic model supports the long-term use of the application. Each section breaks down the token's purpose and how it's connected to trading, staking, governance, and platform growth.

SAROS Utility

The SAROS token is designed to support multiple functions across the Saros ecosystem. It acts as the main transactional unit for several features and is required to engage in staking, liquidity mining, governance, and certain NFT-related actions. By introducing a token that links all parts of the application, Saros is able to create economic alignment across its products.

One of the primary uses of SAROS is staking. Token holders can stake SAROS to receive staking rewards, which are distributed periodically. These rewards are funded through emissions reserved for community incentives. This staking process also allows users to participate more deeply in the system, since their staked assets reflect ongoing commitment rather than short-term interest.

SAROS also serves as the reward currency for liquidity providers. Users who contribute assets to trading pairs on Saros DEX earn SAROS as a form of compensation. This structure helps secure liquidity for the decentralized exchange, which improves pricing and execution for traders. The size of the reward depends on the amount of liquidity added and the duration for which it is provided.

SAROS Supply and Allocation

The total maximum supply of SAROS is fixed at 10 billion tokens. This cap is enforced through the smart contract system and cannot be increased. The supply is divided into several categories, each with a specific purpose and schedule. The intention behind this structured distribution is to ensure that different stakeholders—contributors, investors, users, and the broader ecosystem—are all accounted for.

Twenty percent of the total supply is allocated to core contributors. This group includes the developers, designers, researchers, and operational teams who have built and maintained the Saros ecosystem. Their tokens are subject to vesting rules, ensuring long-term alignment with the success of the platform.

Another twenty percent is dedicated to ecosystem growth. This pool funds partnerships, integrations, business development, and product expansion. It is also used to support marketing efforts and cross-platform collaborations. These tokens are distributed at the discretion of the project, based on strategic priorities and ongoing milestones.

Strategic reserves represent another twenty percent of the supply. This category acts as a flexible fund that can be used in response to future needs or unexpected opportunities. While some of this reserve may be used to support platform operations, it also serves as a long-term financial cushion.

The remaining allocation includes 15% for early investors, 10% for liquidity incentives, 10% for community development, and 5% for airdrops. The liquidity incentives are released early to support DEX growth, while community development funds are aimed at grassroots adoption efforts. Airdrops are used as onboarding tools to bring new users into the ecosystem.

SAROS Vesting Schedule

The SAROS vesting schedule controls when tokens become accessible to each group of recipients. This mechanism is designed to prevent large-scale selling during the early months of the project and to ensure that stakeholders maintain long-term involvement. The vesting terms vary depending on the type of recipient and their relationship to the platform.

For core contributors, tokens are locked for one year, followed by a linear release over the next 36 months. This approach reduces the risk of early exits and encourages ongoing work on the project. The lock-up also signals to the community that the team is committed to long-term development.

Investors are subject to similar constraints. Their allocations begin unlocking after one year, with the full balance becoming accessible over a period of two years. This discourages speculative behavior and helps stabilize the token’s circulating supply during the early growth phase.

Community development tokens follow a partial vesting structure. A portion is unlocked after one year to support key adoption efforts, and the rest is released in small amounts to maintain support for grants, educational programs, and community-led initiatives. This approach ensures that growth campaigns continue beyond the initial launch period.

SAROS Economic Design

The economic design of SAROS is built around utility, supply control, and long-term alignment between users and the protocol. Each feature that uses the token is designed to create demand, while the fixed supply and vesting schedules limit short-term excess. This combination forms the basis of Saros’s approach to protocol sustainability.

By connecting SAROS to nearly every action within the app—from trading to governance to NFT interactions—the system ensures that demand for the token reflects real platform use. This structure is different from speculative tokens that have no direct application. In Saros, utility and access are closely tied to holding and using SAROS.

The emission strategy was created to prevent inflation from undermining the token’s value. While staking and farming rewards are distributed regularly, they come from pre-allocated pools that shrink over time. This tapering release structure is intended to shift the system from an incentive-driven model to a usage-driven model as the protocol matures.

Price stability and liquidity are addressed through early incentives for trading activity. Liquidity providers are rewarded for contributing to active pools, which strengthens pricing efficiency and reduces slippage for traders. This design supports healthy on-chain markets without relying on centralized market makers.

Highlights

  • SAROS is used across multiple parts of the platform, including staking, trading rewards, governance voting, and NFT interactions.
  • The total supply is capped at 10 billion tokens, divided across contributors, investors, ecosystem growth, community efforts, reserves, and airdrops.
  • Long-term vesting is applied to most categories, including team and investor allocations, to reduce early selling and promote ongoing commitment.
  • Liquidity and airdrop tokens are released without delay to support trading and attract new users from the start.
  • The economic model is designed to keep demand tied to platform usage while limiting inflation through controlled emissions and fixed supply.
Disclaimer
* Crypto investment involves significant risks. Please proceed with caution. The course is not intended as investment advice.
* The course is created by the author who has joined Gate Learn. Any opinion shared by the author does not represent Gate Learn.
Catalog
Lesson 4

Tokenomics of Saros (SAROS)

This module explains how the SAROS token works inside the Saros platform. It covers what the token is used for, how the supply is distributed, how the release schedule is structured, and how the overall economic model supports the long-term use of the application. Each section breaks down the token's purpose and how it's connected to trading, staking, governance, and platform growth.

SAROS Utility

The SAROS token is designed to support multiple functions across the Saros ecosystem. It acts as the main transactional unit for several features and is required to engage in staking, liquidity mining, governance, and certain NFT-related actions. By introducing a token that links all parts of the application, Saros is able to create economic alignment across its products.

One of the primary uses of SAROS is staking. Token holders can stake SAROS to receive staking rewards, which are distributed periodically. These rewards are funded through emissions reserved for community incentives. This staking process also allows users to participate more deeply in the system, since their staked assets reflect ongoing commitment rather than short-term interest.

SAROS also serves as the reward currency for liquidity providers. Users who contribute assets to trading pairs on Saros DEX earn SAROS as a form of compensation. This structure helps secure liquidity for the decentralized exchange, which improves pricing and execution for traders. The size of the reward depends on the amount of liquidity added and the duration for which it is provided.

SAROS Supply and Allocation

The total maximum supply of SAROS is fixed at 10 billion tokens. This cap is enforced through the smart contract system and cannot be increased. The supply is divided into several categories, each with a specific purpose and schedule. The intention behind this structured distribution is to ensure that different stakeholders—contributors, investors, users, and the broader ecosystem—are all accounted for.

Twenty percent of the total supply is allocated to core contributors. This group includes the developers, designers, researchers, and operational teams who have built and maintained the Saros ecosystem. Their tokens are subject to vesting rules, ensuring long-term alignment with the success of the platform.

Another twenty percent is dedicated to ecosystem growth. This pool funds partnerships, integrations, business development, and product expansion. It is also used to support marketing efforts and cross-platform collaborations. These tokens are distributed at the discretion of the project, based on strategic priorities and ongoing milestones.

Strategic reserves represent another twenty percent of the supply. This category acts as a flexible fund that can be used in response to future needs or unexpected opportunities. While some of this reserve may be used to support platform operations, it also serves as a long-term financial cushion.

The remaining allocation includes 15% for early investors, 10% for liquidity incentives, 10% for community development, and 5% for airdrops. The liquidity incentives are released early to support DEX growth, while community development funds are aimed at grassroots adoption efforts. Airdrops are used as onboarding tools to bring new users into the ecosystem.

SAROS Vesting Schedule

The SAROS vesting schedule controls when tokens become accessible to each group of recipients. This mechanism is designed to prevent large-scale selling during the early months of the project and to ensure that stakeholders maintain long-term involvement. The vesting terms vary depending on the type of recipient and their relationship to the platform.

For core contributors, tokens are locked for one year, followed by a linear release over the next 36 months. This approach reduces the risk of early exits and encourages ongoing work on the project. The lock-up also signals to the community that the team is committed to long-term development.

Investors are subject to similar constraints. Their allocations begin unlocking after one year, with the full balance becoming accessible over a period of two years. This discourages speculative behavior and helps stabilize the token’s circulating supply during the early growth phase.

Community development tokens follow a partial vesting structure. A portion is unlocked after one year to support key adoption efforts, and the rest is released in small amounts to maintain support for grants, educational programs, and community-led initiatives. This approach ensures that growth campaigns continue beyond the initial launch period.

SAROS Economic Design

The economic design of SAROS is built around utility, supply control, and long-term alignment between users and the protocol. Each feature that uses the token is designed to create demand, while the fixed supply and vesting schedules limit short-term excess. This combination forms the basis of Saros’s approach to protocol sustainability.

By connecting SAROS to nearly every action within the app—from trading to governance to NFT interactions—the system ensures that demand for the token reflects real platform use. This structure is different from speculative tokens that have no direct application. In Saros, utility and access are closely tied to holding and using SAROS.

The emission strategy was created to prevent inflation from undermining the token’s value. While staking and farming rewards are distributed regularly, they come from pre-allocated pools that shrink over time. This tapering release structure is intended to shift the system from an incentive-driven model to a usage-driven model as the protocol matures.

Price stability and liquidity are addressed through early incentives for trading activity. Liquidity providers are rewarded for contributing to active pools, which strengthens pricing efficiency and reduces slippage for traders. This design supports healthy on-chain markets without relying on centralized market makers.

Highlights

  • SAROS is used across multiple parts of the platform, including staking, trading rewards, governance voting, and NFT interactions.
  • The total supply is capped at 10 billion tokens, divided across contributors, investors, ecosystem growth, community efforts, reserves, and airdrops.
  • Long-term vesting is applied to most categories, including team and investor allocations, to reduce early selling and promote ongoing commitment.
  • Liquidity and airdrop tokens are released without delay to support trading and attract new users from the start.
  • The economic model is designed to keep demand tied to platform usage while limiting inflation through controlled emissions and fixed supply.
Disclaimer
* Crypto investment involves significant risks. Please proceed with caution. The course is not intended as investment advice.
* The course is created by the author who has joined Gate Learn. Any opinion shared by the author does not represent Gate Learn.