Derive releases the governance proposal for the DRV token economics, planning to issue the token in the fourth quarter

ChainCatcher news, the derivatives protocol Derive (formerly Lyra) has released a governance proposal for the DRV token economics. The DRV token is planned to be launched in the fourth quarter, with a total supply of 1 billion tokens. LYRA/stkLYRA holders will have a 1:1 claim to DRV tokens, with the amount determined by the balance at the time of the snapshot. DRV will be issued on the Ethereum mainnet, with most being cross-chain claimed on Derive L2, and can be staked as stDRV (only on Derive L2), with only stDRV able to participate in governance.

As a reward for staking DRV, stDRV holders will be eligible for rewards. The DAO treasury will allocate up to 1.15 million DRV weekly to the CC multisig for staking rewards, and after 6 months post-TGE, the weekly rewards will decrease to 600,000 DRV. 25% of the protocol's revenue will be used to buy back tokens for the DAO treasury. Additionally, up to 2.5 million DRV will be allocated weekly for various incentive programs for protocol usage (trading/liquidity, etc.).