Reward Emissions and Bribes

Emissions & Bribes

Zentra distributes ZNT tokens through a structured 3-year emission program designed to bootstrap protocol activity while ensuring long-term sustainability.

Emission Overview

Total Emission Pool: 60% of supply (15,000,000 ZNT)

Category	Allocation	Tokens	Purpose
Incentives	48%	12,000,000	Supply rewards, borrow rewards, points
Bribes	12%	3,000,000	Satsuma DEX incentives, weekly distribution

Duration: 37 intervals (36 × 30 days + 1 × 15 days)

Emission Schedule

Timeline Structure

Parameter	Value
Total Duration	~3 years (1,095 days)
Intervals	37 total
Regular Intervals	36 × 30 days
Final Interval	1 × 15 days
Emission Curve	Declining

Declining Emissions

Emissions decrease over time, front-loading rewards for early participants while extending incentives throughout the 3-year period.

Period	Emission Level
Year 1	High (~500K/month start)
Year 2	Medium
Year 3	Low (~100K/month end)

Distribution Split

Interval 1 (Launch Period)

During the first interval, emissions are split equally to bootstrap both sides of the market.

Recipient	Share
Suppliers	40%
Borrowers	40%
Satsuma Bribes	20%

Intervals 2-37 (Ongoing)

After launch, the split shifts to prioritize borrower incentives.

Recipient	Share	Purpose
Borrowers	70%	Primary protocol activity driver
Suppliers	10%	Base lending incentive
Satsuma Bribes	20%	DEX Liquidity Incentive

Why 70% to Borrowers?

Reason	Explanation
Protocol Rewards	Borrowers generate interest = rewards
Utilization	Higher borrowing = better supplier APY
Net Benefit	ZNT rewards often exceed borrow cost
Activity Driver	Borrowing indicates active DeFi usage

Effective Borrow Cost

Net Borrow Cost = Interest Paid − ZNT Rewards Received

Example:

• Borrow APY: 8%

• ZNT Rewards: 12%

• Net APY: -4% (you're PAID to borrow)

Satsuma Bribes Mechanism

How Bribes Work

Instead of directly incentivizing LP providers, Zentra uses Satsuma bribes to attract liquidity more efficiently.

The Flow:

1. 20% of ZNT Emissions → Weekly bribes

2. Satsuma Voters receive bribes → Vote for ZNT/USDC gauge

3. ZNT/USDC LP receives SUMA rewards → Attracts more LPs

4. Protocol collects earned SUMA

5. ZNT Stakers receive 90% of SUMA (monthly, random timing)

Why Bribes > Direct LP Rewards

Direct Rewards	Bribe Model
Expensive (need high APY)	Capital efficient
Mercenary liquidity	Aligned voters
No secondary benefits	SUMA rewards to stakers
One-dimensional	Creates flywheel effect

SUMA Distribution

Step	Description
1	Protocol bribes Satsuma voters weekly
2	Voters direct SUMA rewards to ZNT/USDC
3	Protocol collects earned SUMA
4	90% distributed to ZNT stakers monthly
5	Distribution at random times (prevents gaming)

Governance Flexibility

The emission structure is not fixed. Governance can adjust parameters to respond to market conditions.

Adjustable Parameters

Parameter	Governance Control
Emission splits	Supply/Borrow/Bribe ratio
Interval duration	Length of emission periods
Decay rate	How fast emissions decline
Market weights	Which assets receive more rewards

Governance Process

Phase	Description
1. Proposal	Any holder can submit
2. Forum Discussion	Community debate
3. On-chain Vote	Token holders vote
4. Execute	Timelock delay, then implementation

Emission Examples

Year 1 (High Emissions)

Category	Monthly Est.	Purpose
Borrowers	~280,000 ZNT	Bootstrap borrowing activity
Suppliers	~40,000 ZNT	Maintain supply incentive
Bribes	~80,000 ZNT	Build deep liquidity

Year 3 (Reduced Emissions)

Category	Monthly Est.	Purpose
Borrowers	~100,000 ZNT	Maintain activity
Suppliers	~15,000 ZNT	Supplementary yield
Bribes	~30,000 ZNT	Sustain liquidity

📊 Exact amounts depend on the specific decay formula and governance adjustments.

Strategic Design

Phase	Characteristics
Early (High Emissions)	Bootstrap TVL, attract users, build liquidity, establish market
Late (Low Emissions)	Protocol self-sustaining, fee rewards dominant, organic demand

Transition:

• Early: High APY needed, token incentives critical

• Late: Base yield sufficient, fundamentals drive value