- ROOK is emitted every block through inflation.
- The amount of ROOK emitted in a block remains the same for the duration of one quarter (three months).
- The first quarter emits 200,000 ROOK.
- The initial supply is 800,000 ROOK.
- The total ROOK emitted during a quarter is 70% of the total ROOK emitted during the previous quarter. This percentage is known as the decay.
- Governance can choose to alter the decay.
Distribution refers to where newly emitted ROOK is sent. Generally speaking, governance controls the precise distribution of ROOK amongst users.
- In the first quarter, 30% of emissions were distributed to liquidity providers, and 70% of emissions were distributed to keepers.
- In the second quarter, 30% of emissions will be distributed to liquidity providers, and 70% of emissions will be distributed to traders (people that submit orders through the Hiding Game).
- At some point during the second quarter, the Hiding Game will be expanded to include liquidations. At this point, 20% of emissions will be distributed to liquidity providers, 40% of emissions will be distributed to traders, and 40% of emissions will be distributed to borrowers/lenders.
- Governance will decide on the distribution mechanism for the third quarter.
It is expected that, as new mechanics are introduced for the Hiding Game, the distribution of emissions will be altered to incentivize adoption. Furthermore, when the Coordination Game (for coordinating MEV between keepers) and the Incentive Game (for incentivizing governance) are introduced, ROOK distributions will also be adjusted. The end goal is to incentivize participation in KeeperDAO, and to disincentive holding ROOK but not participating in any of its MEV mechanisms.