Stable is about to enter its next phase. Today, we are releasing the STABLE token economics, an economic design aimed at ensuring secure governance, coordinating incentives, and achieving long-term sustainability, while users will still transact entirely in USDT.

Entering the Next Phase of the Network

Stable is a settlement layer where stablecoins operate, combining the reliability of a payment network with the programmability of blockchain. All transfers, payments, and transactions are settled in USDT, with predictable fees and instant processing. The Stable Network is designed for high-value currency transactions, eliminating the operational uncertainties that currently limit the adoption of stablecoins.

To maintain this performance and reliability, a dedicated economic layer is needed. This is precisely where the STABLE token comes in. It manages protocol evolution and funds long-term ecosystem development, while ensuring all user activity is denominated in USDT. This separation of user settlement from backend coordination allows Stable to provide predictable economic benefits without increasing complexity for individuals or businesses.

Stablecoin White Paper Overview

How the Protocol Addresses the Inadequacies of Existing Settlement Infrastructure

How USDT is Used as a Native Asset for Fees and Settlements

How the STABLE Token Coordinates Incentives Between Developers and Ecosystem Participants

How Governance and Economic Coordination Support Long-Term Reliability

The Significance of the STABLE Token

For users, a single-token experience is crucial for adoption. Individuals and businesses should no longer manage highly volatile assets to send USDT. Simultaneously, a high-performance settlement network still requires an economic layer to coordinate the system’s large-scale operation.

The STABLE token exists to support the following three network functions:

Securing the consensus mechanism through meaningful economic benefits.

Coordinating governance and protocol upgrades.

Supporting ecosystem incentives and long-term sustainability.

The stablecoin does not participate in daily transactions. Its purpose is to secure the network and coordinate its development, while USDT remains the only asset used by users in normal transaction activities.

The Core Role of the STABLE Token

The STABLE token provides the economic foundation for the network; all transactions are conducted in USDT. Its function is not as a payment asset, but rather to support coordination, security, and governance mechanisms, enabling Stable to operate as a reliable settlement layer. The STABLE token serves as the network’s coordination tool, supporting three core functions:

1. Network Security

Stable employs a StableBFT-based delegated proof-of-stake mechanism. Validators must stake STABLE tokens to participate in consensus, and token holders can delegate their staked tokens to designated validators. This model incentivizes operators to make tangible economic commitments, thereby enhancing network integrity and reducing the risk of malicious behavior. Penalties are implemented for misconduct and prolonged downtime, ensuring that validator incentives align with the system’s health.

2. Governance

STABLE token holders participate in protocol governance. Governance encompasses upgrade approvals, network parameter changes, allocation of community and ecosystem reserves, and other decisions affecting the network’s strategic direction. This architecture allows the network to evolve while maintaining transparency and accountability.

3. Participation in the Network Economy

All Stable fees are paid in USDT. These fees accumulate in a protocol-controlled treasury. Validators can choose to distribute a portion of their USDT fees to their delegators in proportion to the USDT held by their delegators. This establishes a clear economic link between network activity and STABLE token participation. Users who hold tokens and stake or delegate them can earn USDT, a widely used stable asset, as a reward, while the requirement to stake STABLE tokens also maintains a strong security foundation for the network.

1. Total Supply

The total supply of STABLE tokens is fixed at 3 billion. This fixed supply model avoids inflationary issuance and provides clear guidance for long-term economic planning.

3,000,000,000 Stable

Fixed Supply

Not for Gas

Supply Characteristics

STABLE tokens are a governance and security asset.

Users do not need stablecoins to send transactions or interact with the application.

All network fees are denominated and paid in stablecoins.

STABLE tokens are the foundation for staking, governance, and protocol-level coordination.

This approach maintains a simple user experience while enabling strong economic coordination among validators, stakers, and governance participants.

2. Distribution

The supply of STABLE tokens is divided into four categories to support both early development and long-term ecosystem needs:

Genesis Distribution

10% of the total token allocation

300,000,000 Stablecoins

Supports initial liquidity, community activation, ecosystem activities, and strategic distribution efforts.

Ecosystem and Community

25% of Total Token Allocation

750,000,000 Stablecoins

Allocated to developer funding, liquidity programs, integrations, partnerships, community initiatives, and ecosystem development.

Team

20% of Total Token Allocation

600,000,000 Stablecoins

For use only by the founding team, engineers, researchers, and contributors.

Aimed to support long-term commitment to the network.

Investors and Advisors

45% of Total Token Allocation

1,350,000,000 Stablecoins

Allocated to strategic investors and advisors supporting network development, infrastructure building, and promotion.

3. Vesting

The team’s token allocation follows a structured vesting plan to ensure alignment of goals:

One-Year Cliff

Linear Vesting.

A total vesting period of 48 months.

This plan alleviates short-term supply pressure and ensures contributors are aligned with the network’s long-term success.

4. Emissions and Incentives

The supply of STABLE tokens is fixed and will not continuously inflate. This ensures that rewards have real utility and maintains demand for STABLE as the asset required to acquire fee allocation rights.

Staking and Validator Participation

Stable employs a delegated proof-of-stake (PoS) model through its StableBFT consensus protocol. This design supports high-throughput settlement while maintaining the economic security characteristics required for a global payment network. Staking STABLE tokens is the mechanism by which validators and delegators participate in consensus and earn rewards.

Validator Staking. Validators stake STABLE tokens to participate in consensus. The stake size determines their level of participation in block production and ensures reliable performance.

Delegated Staking. Token holders can delegate their stablecoins to validators without operating infrastructure.

Reward Distribution. All network fees are paid in USDT. These fees accumulate in a protocol-managed treasury, which validators can distribute to their stakers. This design links staking incentives to actual network usage.

Penalty Mechanism. Validators who repeatedly sign or are offline for extended periods may be penalized. Penalty mechanisms can enhance reliability and improve overall network security.

Value Capture and Demand Drivers

As protocol usage increases, the demand for the stable version also grows for the following reasons:

USDT trading activity increases the size of the fee pool.

To earn gas fees allocated by validators, staking or delegation using STABLE tokens is required.

Government and validator selection require stable tokens.

This establishes a direct link between network growth and stable token utility without introducing speculative complexities to users.

What’s Next?

With the release of the stable version whitepaper and the introduction of the stable token economic model, the next phase focuses on preparing for the mainnet launch.

Validator Preparation. The validator onboarding process will begin with documentation and guidelines based on the StableBFT consensus model described in the whitepaper.

Ecosystem Preparation. Ecosystem and community grants will support early integrations, developer tools, and initial applications showcasing native USDT settlement.

Governance Activation. Stablecoin holders will gradually gain governance rights according to the framework outlined in the whitepaper. Mainnet Launch. The mainnet launch will follow the architecture and performance goals outlined in the white paper. Network documentation and contract addresses will be released at launch.

Stable brings stablecoins to next-generation settlement infrastructure. Users will transact entirely using USDT. The STABLE token provides the underlying support for the network by ensuring consensus, coordinating governance, and adjusting incentive mechanisms to foster long-term growth.

This release of the token’s economic model is a key milestone in our journey to mainnet. The STABLE token ensures that the economic model behind the network remains transparent, predictable, and aligned with the long-term development of the ecosystem. As Stable progresses to mainnet, the token’s role in staking, governance, and incentive mechanisms will support the reliability of the network operating at scale.

For more information, please refer to the documentation and follow our official channels for the latest updates.

Website: https://stabls.ai

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