# Reward Emissions and Bribes

## Emissions & Bribes

<figure><img src="https://177868434-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSlTSu0KE9LIkP18XCClS%2Fuploads%2FY7z4zGASVg4Pm9hODvPD%2Fimage.png?alt=media&#x26;token=94cd224a-ec81-446c-81c4-221664a0ef82" alt=""><figcaption></figcaption></figure>

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