The wait is over - ALPHA tokenomics is officially live! We’re excited to welcome all ALPHA token holders to officially join the Alpha Wolf Pack.
ALPHA Tokenomics Summary
As some may remember from last week’s blog, Alpha’s innovative fee collection process is a key reason staking will enable numerous unique benefits for ALPHA token holders and the Alpha ecosystem as a whole. ALPHA stakers will not only earn protocol fees from Alpha’s entire product suite, but will also unlock product specific benefits by utilizing them as ALPHA stakers.
A quick recap on how accrued fees on the Alpha Homora protocol are distributed:
- 75% of the total fees accrued by the Alpha Homora protocols will be distributed to all ALPHA stakers in a form of ALPHA tokens. ALPHA stakers will receive tokens in proportion to the amount of ALPHA personally staked vs. total ALPHA staked.
- 5% of current fees collected by Alpha Homora are set aside for long-term developer grants, as Alpha continues to innovate and decentralize the project.
- 20% of fees accrued by the Alpha Homora protocol will repay outstanding debt owed to C.R.E.A.M.
The 75% of the total fees accrued by the Alpha Homora protocols will be proportionally distributed to all ALPHA stakers, and fee distribution will begin in 24-hours (from launch of ALPHA tokenomics).
As we welcome you to the Alpha Wolf Pack, the first feature that Alpha Tiers can unlock is unlocking higher leverage on Alpha Homora V2. We wanted to briefly outline again what Alpha Tier your ALPHA staked will put you in and what leverage level you’ll unlock:
- Alpha Woof Woof: Anyone who stakes 0 - 1,000 ALPHA tokens (including those who don’t stake any) - currently doesn’t unlock any features, but there may be in the future.
- Alpha Wolf Pup: Anyone who stakes 1,000 - 10,000 ALPHA tokens - unlocks 10% higher leverage on Alpha Homora V2.
- Alpha Wolf Warrior: Anyone who stakes 10,000 - 100,000 ALPHA tokens - unlocks 20% higher leverage on Alpha Homora V2.
- Alpha Wolf Elder: Anyone who stakes 100,000 - 1,000,000 ALPHA tokens - unlocks 30% higher leverage on Alpha Homora V2.
- Alpha Pack Leader: Anyone who stakes 1,000,000+ ALPHA tokens - unlocks 40% higher leverage on Alpha Homora V2.
All additional leveraged levels unlocked through staking will be available on Alpha Homora V2 when V2 relaunches.
ALPHA token holders will directly accrue value from all future Alpha products as well. We’ve designed the ALPHA tokenomics so that value accrual isn’t just collecting fees from the ecosystem, but integral to the usage of the core Alpha protocols. ALPHA tokens will also serve a role in helping to insure the entire Alpha ecosystem in case additional insurance is needed.
Guide on How to Stake and Unstake ALPHA Tokens
Now, let's dive into a step-by-step guide on how to stake and unstake your ALPHA tokens.
- Go to ALPHA tokenomics site.
- Go to the upper right-hand corner of the staking page and click ‘Connect Wallet.’
- Go to the lower left-hand corner of the staking page, enter the amount of ALPHA tokens you wish to stake, then click stake. From the amount you entered, you’ll be able to see what Alpha Tier you qualify for and how much more ALPHA is required to get to the next Alpha Tier.
- Follow the instructions on your external wallet to complete the transaction and that’s it!
Once you’ve staked your desired ALPHA tokens, you’ll be able to see your Total sALPHA (your share of ALPHA in the global staking pool), Total ALPHA (your ALPHA staked and staking rewards earned), and distributed reward (your total staking rewards minus staking rewards claimed).
In order to unstake your ALPHA, you need to first go through a 7-day ‘unbonding period' before your ALPHA staked is officially able to be withdrawn. We’ll cover this process in our step-by-step guide below:
- Go to ALPHA tokenomics site.
- Go to the upper right-hand corner of the staking page and click ‘Connect Wallet.’ Please note you can only unstake your ALPHA to the same external ALPHA wallet you originally staked from.
- Go to the lower right-hand side of the staking UI and first use the toolbar to decide what % of your staked ALPHA you’d wish to withdraw. You’ll be able to see your remaining balance in sALPHA once you’ve decided on a specific %.
- Click ‘Unstake’ to start the 7-day unbonding process.
- Once you’ve clicked ‘Unstake,’ your ALPHA tokens will go through a 7-day unbonding period before they can be withdrawn to your external wallet. During this 7-day unbonding period, unbonding ALPHA tokens will still accrue value.
- After the 7-day unbonding period has finished, you’ll have a 24-hour withdrawal period in which you can withdraw your unbonded ALPHA tokens - thus, completing the unstaking process!
- If during the unbonding period you decide you’d like to adjust the amount of ALPHA tokens unbonded, you’ll need to re-initiate the unstaking process with the new amount of ALPHA tokens you wish to unbound. In this case, your old unbonding period will be canceled and you’ll need to restart a new 7-day unbonding period.
- You’ll be able to stake more ALPHA while you’re going through an ongoing unbonding period, however, your current unstaking process will be cancelled. You’ll need to re-initiate a new 7-day unbonding period, after you stake your additional ALPHA, in order to unstake your desired ALPHA.
- If you don’t withdraw your unbonded ALPHA tokens during the 24-hour withdrawal window, your staked ALPHA will remain in the staking contract. You’ll have to restart a new 7-day unbonding period in order to withdraw your desired amount of ALPHA tokens.
About Alpha Finance Lab
Alpha Finance Lab is an ecosystem of DeFi products that will interoperate to maximize returns while minimizing downside risks for users. Each Alpha product focuses on capturing unaddressed demand in DeFi in an innovative and user friendly way.