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STEAM Token

STEAM is the native governance, incentive, and revenue-sharing token of the Zhenglong ecosystem. It plays a central role in coordinating the protocol's growth, securing market health, and rewarding community participation.

Overview​

STEAM turns users, builders, and liquidity providers into long-term stakeholders aligned with Zhenglong's success through multiple utilities:

  • Governance power through veSTEAM (vote-escrowed STEAM)
  • Boosting rewards in Stability Pools and liquidity provision
  • Protocol revenue sharing and redistribution
  • Control over emissions and incentives via gauge voting
  • Alignment of long-term interests with the protocol's success

Token Utilities​

1. Governance Power (veSTEAM)​

STEAM holders who lock their tokens as veSTEAM gain the ability to:

  • Vote on new incentivized market launches
  • Direct incentive emissions toward Stability Pools, liquidity pools, or strategic initiatives
  • Influence protocol parameters like minimum collateral ratios and fee structures
  • Direct protocol revenue
  • Participate in gauge voting to determine where incentives flow

The longer the STEAM is locked, the more veSTEAM is received, and the greater the governance power.

2. Boosted Rewards​

  • veSTEAM holders receive boosted returns on Stability Pool deposits and liquidity provision
  • Lock duration affects boost multipliers - longer locks provide greater benefits
  • Enhance yields across all protocol participation
  • Access premium features and advance governance weight

3. Revenue Sharing​

  • Portions of protocol revenue — including minting fees, redemption fees, and yield from yield-bearing collateral — are shared with veSTEAM lockers
  • veSTEAM holders can vote on directing fee allocation
  • Revenue increases with protocol adoption and usage
  • Provides sustainable, non-inflationary returns

4. Gauge Voting System​

  • Governance is conducted through a gauge voting model
  • veSTEAM holders vote on how emissions are distributed across different Stability Pools and markets
  • Dynamically allocates incentives based on community priorities and market demand
  • Enables flexible adaptation to changing market conditions

Locking STEAM for veSTEAM​

  • Maximum Lock Duration: 1 year (12 months) is the maximum lock period
  • Linear veSTEAM Calculation: The amount of veSTEAM you receive increases linearly based on your lock length:
    • 3 months lock = 0.25 veSTEAM per locked STEAM
    • 6 months lock = 0.5 veSTEAM per locked STEAM
    • 9 months lock = 0.75 veSTEAM per locked STEAM
    • 12 months lock = 1 veSTEAM per locked STEAM (maximum)
  • Voting Power: Longer locks grant proportionally higher voting power and greater share of rewards
  • Decaying Locks: Lock time gradually decreases over time unless renewed
  • Alignment Incentives: Users who lock STEAM align their interests with the long-term health and growth of Zhenglong

veSTEAM Lock Duration Chart​

veSTEAM per STEAM
1.0 |                *
    |              *
0.8 |            *
    |          *
    |        *
0.6 |      *
    |    *
    |  *
0.4 |*
    |  *
    |    *
0.2 |      *
    |        *
    |          *
0.0 +---------------
    0  3  6  9  12
       Lock Duration (months)

As shown in the chart, the relationship between lock duration and veSTEAM received is directly proportional. Locking for the maximum duration of 12 months provides the maximum benefit of 1 veSTEAM per STEAM locked.

Tokenomics​

The STEAM token is designed to align incentives across all participants while promoting long-term sustainability and responsible growth.

Supply and Emission​

  • Total Supply: 100,000,000 STEAM tokens will ever exist
  • Emission Schedule: Designed to last over 100 years, ensuring slow, controlled release
  • Sustainable Distribution: Gradual emission prevents short-term mercenary behavior
  • No Hidden Unlocks: Transparent vesting schedules for all allocations

Token Allocation​

AllocationPercentagePurpose
Bao Treasury25%Permanently locked as veSTEAM; controlled by veBAO governance
Initial Liquidity1%Combined with IDO funds to seed initial DEX liquidity pools
Aladdin DAO3%Incentives for technical collaboration and strategic alignment
Treasury Reserve10%Reserved for future initiatives, including new market launches
Initial Dex Offering6%Fundraising for audits, protocol-owned liquidity, and development
Genesis Participation2%Distributed to participants who help bootstrap the first markets
Community Boosters3%Allocated to reward marketing, content creation, and engagement
Founders/Contributors6%Allocated to key early builders, subject to vesting
Protocol Incentives39%Distributed to Stability Pools, LPs, and lending incentives
veBAO Holders5%Distributed through ongoing airdrops to veBAO lockers

Emission Design​

  • 100-Year Emission Curve: STEAM is emitted slowly over a century-long curve, ensuring sustainable incentives that favor long-term participants rather than short-term speculators
  • Gauge Voting and Flexibility: veSTEAM governance can dynamically adjust where emissions flow — e.g., boosting new Stability Pools, rewarding liquidity providers, or incentivizing new collateral markets
  • Sustainable Incentive Structures: Emissions are designed to match protocol growth, TVL expansion, and real market demand, rather than front-loading which often leads to collapse after initial hype
  • Transparent Vesting: Founder allocations and other reserves vest gradually over time. All allocations except initial dex liquidity, IDO, Genesis and Treasury Reserves are vested in line with emissions. For example, Founders allocation will take the full 100 years to fully vest.

Earning STEAM​

Users can earn STEAM through various protocol activities:

  1. Stability Pools

    • Deposit assets into either Collateral or Steamed Stability Pools
    • Earn base rewards according to gauge voting
    • Boost rewards with veSTEAM locks

  2. Genesis Vault Participation

    • Help bootstrap new markets through Genesis Vaults
    • Receive STEAM rewards for early support
    • Distribute risk and initial tokens

  3. Liquidity Provision

    • Provide AMM liquidity for protocol tokens
    • Earn trading fees and STEAM rewards
    • Boost rewards with veSTEAM

  4. Governance Participation

    • Lock STEAM for veSTEAM
    • Vote on emissions and gauges
    • Direct protocol development
    • Participate in governance forums

✅ Decentralized Ownership: Broad distribution across participants, governance, and builders

✅ Alignment of Incentives: STEAM holders benefit from real protocol revenue and protocol growth

✅ Ultra-Long-Term Design: 100+ year emissions curve prevents mercenary behavior and supports multi-decade DeFi expansion

The STEAM token isn't just an incentive — it's the governance, growth engine, and heartbeat of Zhenglong's emerging synthetic asset ecosystem.