Tokenomics

Economic Model

CHI is the native token that powers the Chi Protocol, serving essential functions such as boosting, liquidity provision, and governance. As an ERC-20 governance token, CHI enables its holders to manage the protocol and its associated risks, ensuring stability, transparency, and efficiency.

The voting power of CHI holders is proportional to the amount of CHI they boost and the duration of the lock-up period. The more CHI tokens boosted and the longer the duration, the greater the voter’s influence in governance decisions.

By boosting CHI, users obtain veCHI, which grants them voting power and access to rewards such as stETH and CHI. Additionally, users can provide liquidity in the CHI/ETH pair on Uniswap v2 and stake the LP tokens to earn stETH, weETH, and CHI incentives. This structure ties CHI to real value, as reflected by the protocol's reserves, and allows CHI token holders to benefit from the growth of the USC reserves. The larger the reserves, the greater the incentives to boost CHI and provide liquidity, making CHI a valuable asset within the protocol.

Token Allocation

At launch, CHI had an initial supply of 100,000,000 tokens, distributed as follows:

Tokenomics

Allocations