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The Protocol Scope regulates the maintenance and development of the core Sky Protocol and its critical, non-collateral components. The Protocol Scope defines all rules for protocol engineering.
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This Article governs the emissions of Star tokens. For the reward mechanisms that are multichain, the rate of distribution is balanced across each SkyLink destination deployment to attempt to target an equal Reward Rate per supplied USDS or Activated SKY.Star Token Emissions:The genesis emissions of Star Tokens happens over a period of 10 years, with half of the emissions happening in the first 2 years, and the emission rate halving every 2 years from then on. The Star Token genesis emissions are split across 3 types of recipients: USDS holders, SKY holders that Activate (no exit fee) and SKY holders that Seal (locks the SKY behind an exit fee). Each type of recipient share the total Star Token emission rate among their own type.Year 1 and 2:Total: 2 billion Star Tokens/year.USDS Token Rewards: 1.4 billion Star Tokens/year.SKY Activation Rewards: 300 million Star Tokens/year.SKY Seal Rewards: 300 million Star Tokens/year.Year 3 and 4:Total: 1 billion Star Tokens/year.USDS Token Rewards: 700 million Star Tokens/year.SKY Activation Rewards: 150 million Star Tokens/year.SKY Seal Rewards: 150 million Star Tokens/year.Year 5 and 6:Total: 500 million Star Tokens/year.USDS Token Rewards: 350 million Star Tokens/year.SKY Activation Rewards: 75 million Star Tokens/year.SKY Seal Rewards: 75 million Star Tokens/year.Year 7, 8, 9 and 10:Total: 250 million Star Tokens/year.USDS Token Rewards: 175 million Star Tokens/year.SKY Activation Rewards: 37.5 million Star Tokens/year.SKY Seal Rewards: 37.5 million Star Tokens/year.Bootstrapping emissions:Contributor token grants: 1 billion Star Tokens.Contributor token grants are managed by Star governance controlled processes, subject to milestones and performance deliverables.Liquidity bootstrapping: 1 billion Star Tokens.Liquidity bootstrapping tokens are managed by Star governance controlled processes, subject to transparency and reporting of what is happening with the assets. After a finite period of time the liquidity bootstrapping program must be wound down and all remaining assets from the program must be returned to Star control.