Economics & Incentives

The Valdora Liquid Staking Protocol is designed to align incentives between users, validators, governance participants, and the protocol treasury. This section outlines how rewards are generated, distributed, and used to sustain the protocol’s long-term health.

The stZIG APR is dynamic and depends on:

• Validator performance

• Total staked supply

• ZIGChain inflation and distribution schedule

• Validator commission

• Fee Structure

Valdora employs a transparent fee model designed to support protocol development and treasury growth while maintaining competitive staking yields.

Protocol Fee:

• 10% performance fee is applied to staking rewards (not user principal).

• Collected fees are directed to:

  • Protocol treasury (for audits, grants, and future development)

The protocol treasury accumulates revenue from performance fees and serves as a reserve to fund long-term development and sustainability.

There are no fees on deposit, redemption, or holding stZIG. This ensures frictionless staking and liquidity participation.

Liquidity Mining

While not explicitly activated at launch, the architecture of stZIG as a tradable token allows for future liquidity mining programs.

Potential Mechanics (enabled by architecture):

• Reward users for providing stZIG-ZIG or stZIG-stablecoin liquidity on DEXs.

• Distribute future governance tokens to LPs to bootstrap liquidity.

• Deploy staking contracts that incentivize stZIG holders to participate in long-term vaults or lending protocols.