This documentation describes planned functionality and processes that MakerDAO has not yet implemented. Be aware that parts may be inaccurate or out of date.
Each Maker SubDAO has its own SubDAO token. Each SubDAO token is a new token that is minted by Maker Core and distributed widely via token farming initiatives.
There are a multiple goals that Maker intends to meet via the SubDAO tokenomics.
- 1.To distribute the ownership of each SubDAO as widely as possible.
- 2.To ensure that SubDAO creation drives value to Maker Core in the form of:
- Dai demand
- Governance participation
- 3.To incentivize talented individuals to work to make each SubDAO a success.
The initial supply of each subDAO token is 2.6 billion.
400 million SubDAO tokens are set aside to be used as incentives for the SubDAO's workforce.
200 million SubDAO tokens are sold for DAI over a period of 2 years and used to fund the SubDAO treasury.
2 billion of each SubDAO's tokens are used for yield farming during the first 10 years of the SubDAO's lifespan. This is broken down in the table below.
Additionally, each SubDAO emits 3% of their total supply each year. These emissions are directed to the SubDAO's token farms.
75% of the initial SubDAO token distribution is farmable by Dai holders.
25% of the initial SubDAO token distribution is farmable by MKR holders that are active in Maker Core governance.
SubDAOs use locked Elixir to burn a small percentage of their governance token each year if the value of their locked Elixir exceeds their token's market cap. This delivers value back to the SubDAO's token holders.
Page last reviewed: 2023-08-03 Next review due: 2023-11-03