What is $ISK?

$ISK is used for all types of services provided within the Iskra ecosystem. $ISK has three key utilities:

  • Exclusive currency to buy Pioneer NFTs: After the 10,000th Pioneer NFT is sold, all remaining Pioneer NFTs are only available for purchase with $ISK.

  • Governance token: Holders are entitled to propose and vote on initiatives that govern the Iskra platform.

  • Key currency: $ISK serves all purposes in the Iskra platform. It can be exchanged with other assets and can be used as a form of payment and charges for a variety of other services in the Iskra ecosystem.

Iskra Governance(Iskra DAO)

Iskra has a vision to become a decentralized platform operated by a Decentralized Organization (Iskra DAO). The only way to participate in the Iskra DAO is to obtain governance rights ($sISK) through staking $ISK to the Governance Staking.

When you join the Iskra DAO, you will receive all of the following benefits :

  • The Right to participate in governance proposals and voting: entitled to propose and vote on the Iskra platform’s operation policies

  • $ISK : rewarded with 20% of all $ISK in accordance with the Distribution Plan as described in the next section

  • Contribution Points: rewarded according to the amount of $sISK held based on a defined formula

Governance Staking Reward Structure

$sISK plays key role in the Iskra Governance. Only $sISK holders can participate in the Iskra DAO and receive governance power, $ISK rewards, CP, and other rewards. Each $sISK represents 1 voting power and 1 contribution point, and also grants the holder the right to receive corresponding $ISK rewards. $sISK can be obtained by staking $ISK in the Governance staking. However, as $sISK is a yield-bearing token, its value will constantly increase as long as yield is generated. This means that the amount of $ISK required to obtain 1 $sISK will continue to increase over time.

The mechanism for this is as follows:

At the beginning, $ISK and $sISK form a pool in a 1:1 ratio in the Governance Staking Contract. At this point, you can obtain 1 $sISK for every 1 $ISK.

Now, the staking rewards begin. 20% of the total $ISK are distributed as compound interest through the Governance staking contract every second for 20 years. As the $ISK rewards are distributed, the number of $ISK in the $ISK-$sISK pool will gradually increase, and the value of $sISK will increase as well. For example, if the ratio of $ISK to $sISK becomes 1:0.8, the 1 $sISK that you initially obtained with 1 $ISK is now worth $1.25 ISK.

The Governance staking rewards will continue for 20 years, so the value of $sISK will also increase steadily over that time. As time goes on, it will take more $ISK to obtain 1 $sISK. Therefore, it is best to acquire $sISK in a rapid manner and to hold it for as long as possible if you want to maintain Governance Power in the Iskra DAO.

Total Supply and Distribution Plan

*2022.07.01 00:00 UTC **PNFT Reward started on 2022.06.30 at 05:00 UTC ***As per the Governance Voting results, the distribution plan for Pioneer NFT has been revised, effective from September 29, 2023, at 11:00 UTC.

Note: Each Yearly distribution amount is the net amount excluding the lock-up period This table has nothing to do with the actual circulating supply

The total supply of $ISK is 1 billion, subject to the following distribution plan:

  • Team: 10%

  • Private Investor: 10%

  • Ecosystem Fund: 20%

  • Pioneer NFT holders: 40%

  • Governance staking: 20%

Note: The details of allocation and distribution plan are subject to change

Deflationary Model - Burning Pool

A total of 20% of all platform fee revenue will be reserved in Burning Pool to buy back and burn $ISK circulating in the market. $ISK burning will be done periodically by Iskra Team without prior notice to provide lower price volatility, and the results will be announced subsequently.

Note: The operation of the Burning Pool is overseen by the community system. Detailed operational policies for the Burning Pool will be determined and publicly disclosed following governance voting upon the conclusion of the beta period of the community system.

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