Token Economics
The NUVA token is designed as a self-reinforcing economic flywheel. A vote escrow mechanism anchored by staking NUVA into veNUVA, unlocks governance rights, boosted yields, and a direct share of net protocol revenue. As TVL scales, NUVA becomes progressively scarcer as revenue share and buybacks increase, while emissions decay relative to deposits.
Beyond this core loop, several reinforcing mechanisms strengthen demand; access vault structured products gated by NUVA; an on-chain credit score progression; liquidity gauges that allow veNUVA holders to steer incentives toward preferred vaults, creating a market for governance power; and cross-chain expansion that makes NUVA the coordination asset for RWA yield across ecosystems.
Additional ecosystem incentives funded by the Treasury shall distribute rewards based on seasonal campaigns anchored by the Onchain Credit Score. Working in parallel, a metagame around the NUVA token combines real yield, governance influence, scarcity, and access utility ensuring the token’s value compounds in lockstep with protocol growth.
Fixed Supply
Total Supply: 1 billion NUVA tokens
Denomination: 6 decimal micro-units
Value Accrual Mechanisms
Demand Drivers:
Mandatory for transaction fees and governance participation
Increased protocol adoption drives staking and token usage
Supply Management:
Fee-based buybacks from treasury-generated yield
Emissions tied to protocol metrics and a reward decay curve preserves the Treasury
Staking reduces circulating supply
Encouraged Behaviors
Phase 1 (Pre-TGE)
Bootstrap early TVL commitments with community token bonus incentives
Early participants accrue points reflected on their “On-chain Credit Score” tier based on multiple factors including committed amount and duration
Referrals of qualified new users
Social engagement
Phase 2 (Post-TGE)
Staking NUVA tokens
Boosting yield for certain vaults on NUVA, with NUVA tokens incentives
Using NUVA tokens to pay for platform fees. Users receive fee discounts
Holding tokens over a length of time
Providing liquidity on DEXes / DeFi Protocols
Participating in governance whilst accruing towards “On-chain Credit Score”
Referrals of qualified new users
Social engagement
Staking Tiers
The NUVA token features a multi-tiered token staking system, designed to reward long-term commitment. “Vote escrowed” NUVA or “veNUVA”, is the staked version of the NUVA token. When users stake NUVA, they receive veNUVA, which entitles them to a portion of the protocol fees, voting rights, and premium services. Over time, veNUVA accrues value through NUVA rewards. The number of veNUVA remains the same while its value increases. Instead of distributing rewards to each staker (which is gas-intensive), NUVA will simply increase the amount of NUVA backing each veNUVA. veNUVA also provides a mechanism for the interoperability of the tokens (whereas the underline NUVA doesn't need to be) and ensures that users can continue to participate in DeFi activities without losing their status.
Reward System
Leveling Up: Achieve level-up by completing a mix of activities including:
Duration of commitment
Introducing new qualified users
Voting
Rewards: A share of AUM fees and premium service fees from NUVA distributed proportionally based on metrics such as amount staked and duration staked.
Premium Service Access: Access to specific premium fee-based services as they become available.
Governance Weight: Voting weight is determined by a function of staked amount and duration.
Transparency*:* Live dashboard tracking reward accrual, eligibility / staking tier.
Distribution of Rewards
The distribution of rewards to veNUVA holders does not follow a fixed schedule. This approach is intentional to prevent predictability and gaming of the system. By making the distribution events random, it ensures a fairer and more secure process for all participants. This strategy helps maintain the integrity of the reward system within the NUVA ecosystem.
Initial Token Distribution
A balanced initial token distribution is important for NUVA because it spreads ownership across diverse group of stakeholders, communities, contributors, investors, and treasuries, reducing the risk of monopolization by insiders and fostering genuine decentralization that aligns incentives for long-term sustainability and growth.
Allocation Structure
The initial total token supply is distributed across the following categories
Category | Allocation | Vesting Period |
|---|---|---|
Community | ||
• Incentives | ||
• Servicers | ||
• Stakers | 50% | 30% unlocked at TGE followed by 3 years of linear monthly vesting |
Core Contributors | ||
• NU Digital | 15% | 2 year linear monthly vesting with a 1 year cliff |
Investors | ||
• Early financial supporters | 13% | 2 year linear monthly vesting with a 1 year cliff |
Liquidity | ||
• market makers and other liquidity pools across CEXs and DEXs | 10% | Fully unlocked at TGE |
Foundation / Treasury | ||
• Grants | ||
• Future rewards | 12% | 25% unlocked at TGE followed by 3 years of linear monthly vesting |
Key Revenue Streams
As the NUVA Marketplace grows, the protocol will generate real revenue and share an increasing portion with $NUVA token holders. This cash flow funds long-term network security through real yield rather than inflation, ensuring the ecosystem's viability and stability. Revenue streams vary depending on the asset issuer and vault structure but can include:
Revenue Stream | Description |
|---|---|
Management / Vault Fees | Annual fees on AUM in vaults, charged to investors or originators. |
Deposit/ Withdrawal Fees | Minimal or zero-fee structure for deposits. Withdrawal minimum to reduce churn. Higher fees for premium features like accelerated redemptions. |
Integration and Partnership Fees | Revenue from on-ramping RWAs via partners; includes tokenization services and distribution. |
Origination Fees | Fees charged to asset originators for tokenizing RWAs into NFTs for financing pools. |
Performance Fees | Revenue from excess returns from structured products or opportunistic high-yield strategies. |