Sun (SUN) tokenomics are structured around governance, staking rewards, liquidity mining, and token burning. Here's how it works:
Governance and veSUN
When you lock SUN tokens, you receive veSUN, which grants governance rights. The locking period ranges from 26 weeks to 4 years. The amount of veSUN you receive is proportional to the duration of your lock.
veSUN holders can vote on proposals related to protocol updates and the distribution of liquidity mining rewards. Votes determine the weight of different liquidity pools and influence the platform's development.
Staking and Liquidity Mining
SUN holders can participate in liquidity mining by staking their tokens. veSUN boosts mining speeds by up to 2.5x, depending on the amount of veSUN held. In addition, 50% of stablecoin pool fees are distributed as TUSD rewards to veSUN holders, based on weekly snapshots.
Buyback and Burning Mechanism
To enhance token value, 0.05% of the transaction volume on SunSwap V2 is used to buy back and burn SUN tokens. These tokens are deposited into a designated address and burned every four weeks. The first burn occurred on March 24, 2022, burning over 2.7 million SUN tokens.
Airdrops
SUN has conducted airdrops, including a notable one for veCRV holders over a 52-week period, distributing 1% of the total SUN supply (199 million SUN). Airdrop recipients can claim their rewards by linking their Ethereum wallet to the TRON network.
SUN DAO was introduced to fully decentralize governance. It relies on community proposals and on-chain voting to manage protocol updates and new functionalities. Proposals require significant support from veSUN holders to pass, ensuring community consensus.