Question 1

What is STO?

Accepted Answer

STO is StakeStone's native governance and utility token, used to participate in the governance and incentive mechanisms established by the protocol; it is not the same asset as STONE, StakeStone's liquid staking asset. STO is not intended to be pegged to fiat currency or another asset, so its market price can fluctuate. Holding STO does not automatically grant governance voting rights or eligibility for specific incentives; those functions are provided through converted veSTO and its participation rules.

Question 2

How does STO participate in governance?

Accepted Answer

STO holders must first convert STO into veSTO to participate in governance under StakeStone's design. veSTO is a vote-escrowed form of the token that can be used to vote on reward emissions, certain protocol parameters, and ecosystem development directions, with voting power related to the amount locked. STO is the base token for entering the governance mechanism, while veSTO is the state through which the corresponding voting and incentive eligibility is exercised; the matters that can be voted on and implementation arrangements depend on the governance process the protocol has opened at the time.

Question 3

What are the potential uses of holding or locking STO?

Accepted Answer

After locking into veSTO, users may receive liquidity-yield boosts associated with StakeStone-related liquidity pools and vaults; veSTO holders who vote for specific pools or vaults may also receive corresponding vote-bribe rewards. These are not fixed interest automatically generated merely by holding STO. Users first convert to and hold veSTO, then participate in eligible pools or vaults through the mechanism; whether a boost or reward is generated depends on the product joined, the voting target, and the incentive settings in effect at the time.

Question 4

Can STO and veSTO be converted into each other?

Accepted Answer

STO can be converted to veSTO at a 1:1 ratio; veSTO can also be converted back to STO at a 1:1 ratio, but the conversion back is not immediate and instead enters a 30-day vesting period. A 1:1 ratio means the conversion quantity is unchanged, not that the participation eligibility of the two states is the same. During these 30 days, the portion of veSTO being converted back cannot be used for voting or receive yield boosts. Therefore, before returning to freely usable STO, users first lose the governance and incentive eligibility associated with that portion of veSTO.

Question 5

What are STO's supply and issuance arrangements?

Accepted Answer

STO has a total supply of 1 billion tokens. The tokenomics model allocates it among categories including the community, ecosystem and treasury, team, foundation, and investors, with phased release schedules for different categories. Total supply is not the same as circulating supply at any given time: the total number of tokens, category allocations, releases under vesting schedules, and actual market circulation are distinct stages, so 1 billion tokens cannot be treated directly as the tradable quantity at a particular time.

Question 6

What is the Swap & Burn mechanism?

Accepted Answer

Swap & Burn is a “treasury-asset swap and burn” mechanism: STO holders can use STO to exchange for their corresponding share of certain treasury assets, and the STO used in the swap is subsequently burned. It is not a regular mechanism for distributing rewards. After users provide STO, the protocol determines the portion of treasury assets that can be exchanged based on the settings in effect and the composition of treasury assets; once the swap is completed, the submitted STO is removed from circulation and burned. The outcome therefore depends on the swap conditions, treasury assets eligible for inclusion, and the amount of participation.

StakeStone (STO) Price