Sommelier believes enriching early tokenholders & protocol users is a powerful tool for cultivating adoption. The tokenomics model aims to reflect this.

Note : this is still work-in-progress. We are still working on the exact numbers below with the team.

Fees and rewards on the platform ( example for first Aave stablecoin Cellar built to bootstrap the marketplace)

PS: The fees will most likely change for future cellars depending on its performance and cellar writer preference).

| --- | --- | --- | --- | --- | | 1. Cellar Liquidity Provider | 90% of Yield | | | Liquidity mining SOMM reward based on bonding periods | | 2. Sommelier (Treasury Community) | 5% of Yield (to community pool) This example is for Aave since we are bootstrapping the marketplace with our internal strategies. Fees will go to strategy makers in future cellars. | | 0.025% TVL(Burned ) | |

| 5. Stakers (+ Validators) | 5% of Yield | | 0.225% TVL | | | 6. Strategy Provider (Data-Science Strategy providers) | Performance fee would be charged as defined by the strategy provider in the future | Strategy Providers can choose to have management fees and internally decide how they would want to split the profits with the Data-Science team. | | Proposal: First 20 cellars would be paid the fixed cost by Sommelier to onboard. Post that you can make a proposal and governance pays devs or pay devs directly if you want privacy. |

Tokenomics FAQ

We shared the tokenomics draft earlier in the community chat and are about to make a governance proposal to finalize it for the launch.

Link to the actual tokenomics Mural