Token Flows & Value Loop
A high-level view of how $OLTA integrates with the protocol, enabling value accrual, user incentives, and governance alignment.
OLTA’s token flow model ensures that $OLTA is not only a governance and access token, but also a structural component of protocol sustainability. The system is designed to maintain alignment between user participation, fund performance, and long-term protocol health.
Core Flows
Protocol Entry Users allocate USDC into structured index products. Some funds may require a minimum amount of $OLTA to access or unlock enhanced features.
Fund Allocation Upon deposit, USDC is converted into the underlying index components via smart contracts. A portion of protocol fees collected may be redirected toward $OLTA staking rewards or treasury.
Reward Distribution $OLTA staking participants receive periodic rewards based on protocol activity and fund performance. Rewards are distributed in $OLTA and align with the protocol’s long-term value accrual loop.
Treasury Allocation Revenue collected (fees, slippage spreads, optional performance incentives) is partially stored in treasury reserves. (See Treasury & Sustainability for details)
Governance Participation $OLTA holders can propose and vote on protocol upgrades, index methodology changes, or treasury decisions, depending on governance thresholds.
OLTA Sleeve A portion of each fund may include an $OLTA sleeve, ensuring direct alignment between index performance and the protocol’s ecosystem. (See Token Allocation in Indices for details.)
Value Loop Dynamics
Stake to Participate Users can stake $OLTA to earn additional rewards and gain governance weight. This strengthens token utility beyond pure speculation.
Treasury Buybacks Under certain market conditions, a portion of protocol earnings may be used to buy $OLTA from the market, then either held, redistributed, or directed into staking incentives.
Emission Controls Emission of new $OLTA tokens is tied to key growth milestones and is governed transparently to avoid unnecessary dilution.
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