TokenomicsTokenomics

Tokenomics (Directional)

This page outlines the intended roles of a future $attn token.
It is directional and not a commitment to specific parameters, launch timing, or token value.

1. High-level goals

The token is meant to:

  • align long-term users, LPs, and risk managers,
  • subsidise borrowing and early integrations,
  • backstop and govern the risk system,
  • and share protocol economics with stakeholders.

It is not required to use attn as a borrower or LP in the base configuration.

2. Roles in the system

2.1 Incentives for borrowers

Projects that:

  • route revenues into an attn revenue account, and
  • use advances or credit lines responsibly,

may receive:

  • upfront or streamed $attn grants,
  • interest rebates paid in $attn that lower their effective APR,
  • preferential access to higher limits and longer tenors (subject to risk).

This is meant to:

  • bootstrap adoption of revenue accounts,
  • incentivise transparent, recurring usage rather than one-off positions.

2.2 Incentives for LPs

LPs providing capital (via attnUSD and other PT/YT markets) may receive:

  • additional $attn emissions based on:
    • duration of capital,
    • risk bucket of exposure,
    • helpful behaviours (e.g. participating in auctions, supporting distressed restructurings).

This creates:

  • a way to tilt incentives towards underserved but high-potential segments,
  • a mechanism to reward LPs that stick through full cycles.

2.3 Governance and risk

$attn is intended to govern:

  • risk framework and limits (per-sector, per-name caps, allowed products),
  • parameters for YT pricing curves, reserves, and insurance,
  • treasury usage and incentive schedules,
  • whitelisting / blacklisting of asset types, custodians, and infra.

The exact governance mechanism (token voting, council, veto layers, etc.) is to be designed conservatively, with:

  • strong controls on parameter changes that affect risk,
  • clear emergency powers for halting new positions if needed.

2.4 Insurance and backstop

A portion of:

  • protocol revenue (fees, spreads), and
  • token supply (via allocations or buybacks),

can be directed into an insurance / safety module that:

  • absorbs a first layer of losses before attnUSD NAV is hit, or
  • participates in recapitalising the system after large shocks.

The exact split between:

  • LPs,
  • token stakers,
  • and protocol treasury

will be decided as the system matures.

3. Indicative flows

Examples of flows that may involve $attn:

  • Borrower pays fees in stablecoins → protocol revenue → split between:

    • attnUSD LPs (via higher NAV),
    • protocol treasury,
    • insurance fund,
    • buyback-and-distribute or buyback-and-burn for $attn.

  • LP provides capital and stakes $attn in a “risk module” → earns:

    • share of protocol fees from the risk bucket,
    • additional $attn rewards,
    • but also bears a portion of losses.

All numbers and exact mechanisms here are indicative and will change with further design and feedback.

4. Disclosures

Until a final token design and legal review exist, this page should be treated as:

  • a design intent,
  • not an offer, sale, or guarantee,
  • and not a description of any live or tradable asset.

Updates will be reflected here as the protocol and its community converge on a concrete tokenomics spec.

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