NOTE is an ERC-20 token that governs the Notional protocol. NOTE holders can propose, vote on, and implement changes to Notional system parameters and smart contracts. Each NOTE holder gets one vote per NOTE that they hold.
NOTE Holder Responsibilities
NOTE holders will be responsible for managing the Notional on-chain treasury, setting risk and collateralization parameters, and voting on any proposed upgrades to the Notional smart contracts. Here is a short, non-exhaustive list of things NOTE holders will need to propose and vote on:
Setting liquidity fees
Setting collateral haircuts
Onboarding new collateral types
Activating new maturities for lending and borrowing different assets
Determining liquidity incentive emission rates for different currencies
Proposing and evaluating upgrades to the protocol
Voting and Delegation
Currently NOTE voting is done via Snapshot, for more on Governance and plans for gradual decentralization are discussed on this page.
Notional incentivizes liquidity providers by distributing NOTE to nToken holders. nToken holders accrue NOTE rewards proportional to their share of the total NOTE outstanding and to the annual NOTE emission rate for that currency type. Current annual emission rates by currency are as follows: