Tokenomics

RollApps have a flexible token design space with custom bonding curves, gas tokens, and token distribution methods. As part of the RollApp creation process Creators set the initial mint and distribution parameters.

Mint

RollApps come with minting functionality which enables the continued creation of tokens. The initial inflation rate is set as a parameter on genesis as part of the RollApp creation process. RollApp creators decide on the initial inflation rate, target inflation rate, and how long it takes to get from the initial to the target rate. RollApps automatically decrease the inflation rate annually until it reaches the target inflation rate.

mint and fees are collected and distributed to three entities: Sequencers, the RollApp's community pool, and Stakers by proxy of Governors.

Distribute

Sequencers

RollApp Sequencers are entities that process transactions and publish data onchain. This entity carries the onchain costs of operating a RollApp. The amount of tokens distributed to the Sequencer is decided by the community and may be changed via an onchain governance proposal on the RollApp.

Community pool

Community Pool acts as treasury for the RollApp in order to support initiatives. RollApp governance controls the distribution of funds from the community pool. RollApp token stakers may vote on a proposal on how to use these funds.

If a community spend proposal passes successfully, the number of protocol owned tokens (e.g. RollApp tokens, stablecoins) encoded in the proposal will be transferred from the community pool to the address in the proposal.

Stakers

RollApp Governors are entities that participate in the onchain governance of the RollApp and are delegated tokens by token holders. RollApp token holders delegate their voting power to Governors; however, if a token delegator votes, their vote overrides that of their chosen Governor. Governors set a commission rate, which is applied as a tax on the tokens received.