# Tokenomics

## Three-Token Ecosystem

Sprocket operates with a **two-token model at launch**, with a **third token planned post-TGE**.

## $ROCKET - Main Protocol Token

### Core Properties

* **Soft-pegged to treasury** - $ROCKET price appreciates as protocol treasury grows
* **Automatic yield mechanism** - Hold for passive appreciation or farm for active yield
* **ICHI-style deposits** - Single-sided $ROCKET deposits with automatic LP management

### How to Acquire $ROCKET

| Phase         | Method                                                       |
| ------------- | ------------------------------------------------------------ |
| **At Launch** | TGE minting (linear price from 1 USD to 1.7 ISD per $ROCKET) |
| **Post-TGE**  | Farming rewards or open market purchases only                |

## $xROCKET - Vested Emission Token

All Sprocket farms emit **$xROCKET as rewards**. Users have **three strategic options**:

### Option 1: Vesting

* Convert $xROCKET → $ROCKET over time
* Longer vesting periods = higher conversion rates

### Option 2: Staking

* Stake $xROCKET to earn more $xROCKET
* Dynamic APR based on redemption activity
* Higher volatility = Higher staking rewards

### Option 3: Instant Redemption

* Immediate conversion $xROCKET → $ROCKET
* High penalty fees that fund the staking pool

{% hint style="info" %}
**Market Turbulence Design:** $xROCKET utilities are specifically engineered to weather market volatility. During turbulent periods, increased instant redemptions generate more fees, leading to higher staking APR - creating a positive feedback loop.
{% endhint %}

## 3xROCKET - Liquid Staking Token

*Coming Post-Launch*

### Features

* LST received when staking $xROCKET
* Additional farming opportunities exclusive to holders
* Maintains liquidity while keeping users in ecosystem
* Strategic catalyst for post-launch momentum

## Anti-Dilutive Mechanics

### Sustainable Design

* $ROCKET treasury soft-pegging enables price growth without external buying pressure
* $xROCKET vesting system incentivizes holding during volatility
* 3xROCKET LST encourages long-term staking over dumping
* No dilutive emissions needed for sustainability