Ika is a developing decentralized protocol and the economic mechanisms described here, also known as tokenomics, are subject to change based on governance decisions made by the larger community of Ika (as detailed below). This document describes certain economic fundamentals of the Ika token. This document is intended for informational purposes only and is meant to outline the usage and functionalities of the Ika token, IKA, facilitating operations and activities on Ika.

The Ika network token, IKA, enables participants of the network to interact with the network by facilitating operations and activities on the network. As specified hereunder, the manner IKA are created, reserved and released to the network community has relevance to the long term well maintenance and development of the network. It is important to understand that as a decentralised network it is impossible to pre-implement any absolute network operation rules or principles and the network and its characteristics are always subject to change based on governance decisions made by the larger community of Ika.

Why are economics relevant?

Blockchains work through a combination of cryptography and economic incentives. Cryptography limits what actors in the system can do, for example, transactions must be validly signed to be accepted. Economic incentives encourage actors to voluntarily perform actions that maintain the network’s capabilities when spending their own resources, for example, miners or stakers actively publish new blocks to the chain because they can receive fees and new tokens as a reward. Blockchains are valuable because they are data structures maintained by diverse and, ideally, large groups of otherwise unaffiliated persons. This gives them resilience: Any one participant can disappear, but the data structure is preserved. This also gives them censorship resistance: No single person can unilaterally decide to forbid certain persons from using the network.

Ika will operate as an MPC network that is coordinated on Sui. Ika will enable zero-trust threshold signatures by using the 2PC-MPC cryptographic scheme, and will achieve resilience and censorship resistance by using a token, the Ika token (IKA), to incentivize network participants to participate in threshold signing & consensus validation and to ensure that there is a provably fair mechanism, a proof-of-stake mechanism, to permissionlessly determine who can become a network participant and how signing power (and thus rewards) is distributed.

The purpose of the IKA token

IKA is the mechanism for paying fees to enable operation of the network, maintaining and securing the network by enabling staking, and ensuring decentralized governance.

• Payment - users pay nodes in the MPC network for their work, ensuring a robust economic system. Users pay for operations like generating a new dWallet, requesting signatures to be completed by the network share of a dWallet, and resharing the user and network share of a dWallet.
• Security - a reliable network that rewards good actors and punishes adversarial behavior can be enabled by a permissionless delegated proof of stake mechanism for MPC and consensus validation. Users participate in securing the Ika MPC network by staking their IKA tokens.
• Governance - Ika’s MPC nodes vote on protocol adjustments, and ensure decentralized control over protocol functionality and economics.

In addition to staking, governance, and payment utility, the IKA token also underpins the nuanced economic landscape of cryptographic operations within the Ika network. Different cryptographic functions incur varying computational costs, which in turn influence how users are charged for interacting with the network. For instance, factors such as different elliptic curves of different cryptographic algorithms like ECDSA, EdDSA, or Schnorr, affect the computational cost of generating a decentralized wallet (dWallet) through Distributed Key Generation (DKG), and the cost of producing threshold signatures. These algorithmic differences are not just theoretical—they translate into tangible cost variations that are reflected in the fees paid by users for different cryptographic operations.

Another key consideration is the cost of maintaining and adapting the MPC node committee, the group responsible for carrying out threshold cryptographic tasks. Changing this committee—a process known as reconfiguration—requires significant cryptographic computation to securely redistribute shares of the network’s threshold homomorphic decryption key among the new set of participants. This process is essential to maintain decentralization and adaptability, but it adds to the network’s resource demands. Similarly, ongoing optimizations such as pre-signature rounds (which allow the network to prepare cryptographic material in advance to reduce latency) contribute to the overall workload. These behind-the-scenes computations are critical for maintaining the protocol’s performance and security, but they must be accounted for in the cost structure borne by users.

To ensure that these costs are handled efficiently and sustainably, Ika employs a dynamic market-driven pricing mechanism using the IKA token. This model is designed to balance incentives across the ecosystem—ensuring that MPC nodes are adequately rewarded for their computational effort and reliability, while keeping pricing competitive and predictable for users. This dynamic equilibrium fosters a self-regulating economy that can adapt to changing demand, cryptographic complexity, and participant behavior. Ultimately, the goal is to achieve a stable, performant network that is both attractive for users and economically sustainable for contributors.

Supply and distribution

Ika is a community-driven protocol, and its IKA distribution has been thoughtfully structured to align the interests of all ecosystem participants—core contributors, early adopters, builders, and users—toward the network’s ongoing growth and long-term success.

The IKA token initial launch supply is 10,000,000,000 tokens and as a community driven protocol, well over 50% of that is part of the community allocation. 6% (600,000,000) will be distributed at mainnet launch with the first Ika community drop, and the full distribution and mechanics of the IKA token, including the rest of community allocations and insider allocations, is planned to be published closer to the launch of Ika.

The total supply of tokens, controlled by the protocol, increases over time with the minting of new tokens, for staking rewards, other rewards associated with the staking process or any other purpose that will be determined by the governance of the protocol.

The full distribution and mechanics of the IKA token is planned to be published closer to the launch of Ika.

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RISKS AND DISCLAIMERS

^{IKA IS A DEVELOPING DECENTRALIZED PROTOCOL AND THE ECONOMIC MECHANISMS DESCRIBED HEREIN ARE SUBJECT TO CHANGE BASED ON DECISIONS MADE BY THE LARGER IKA COMMUNITY OF STAKERS. IKA RELIES UPON THIRD PARTIES TO ADOPT AND IMPLEMENT SOFTWARE AND PROTOCOLS AS USERS AND CONTRIBUTORS OF IKA. IT ALSO RELIES, IN WHOLE OR PARTLY, ON THIRD PARTIES TO DEVELOP, SUPPLY AND OTHERWISE SUPPORT IT. THERE IS NO ASSURANCE OR GUARANTEE THAT SUCH THIRD PARTIES WILL CONTINUE TO PARTICIPATE IN THE NETWORK OR THAT THE NETWORK WILL CONTINUE TO FUNCTION AS INTENDED. THE TECHNICAL DOCUMENTS PROVIDED HEREIN DESCRIBE CERTAIN PLANNED AND SPECIFIED ECONOMIC FUNDAMENTALS OF A DIGITAL ASSET, IKA. THESE MATERIALS ARE INTENDED FOR INFORMATIONAL PURPOSES ONLY AND ARE MEANT TO OUTLINE THE USAGE AND FUNCTIONALITIES OF THE ASSET WITHIN IKA. IT IS IMPORTANT TO UNDERSTAND THAT THE PRIMARY PURPOSE OF IKA IS TO PAY FOR FEES, PROVIDE A MECHANISM FOR SECURING CONSENSUS, AND ALLOW FOR DECENTRALIZED GOVERNANCE ON IKA; IT IS NOT INTENDED TO SERVE AS AN INVESTMENT.
IKA RELIES UPON THIRD PARTIES TO ADOPT AND IMPLEMENT THE SOFTWARE AND PROTOCOLS AS USERS OF IKA. IT ALSO RELIES, IN WHOLE OR PARTLY, ON THIRD PARTIES TO DEVELOP, SUPPLY AND OTHERWISE SUPPORT IT. AS A NETWORK COORDINATED ON SUI, IKA ALSO RELIES UPON THIRD PARTIES MAINTAINING AND OPERATING THE SUI NETWORK. THERE IS NO ASSURANCE OR GUARANTEE THAT THOSE THIRD PARTIES WILL COMPLETE THEIR WORK, PROPERLY CARRY OUT THEIR OBLIGATIONS, AND/OR OTHERWISE MEET ANYONE’S NEEDS. IKA, AS THE NATIVE TOKEN OF IKA, MAY BE SUBJECT TO THE RISKS OF THE IKA NETWORK, INCLUDING, WITHOUT LIMITATION, THE FOLLOWING: (I) THE TECHNOLOGY ASSOCIATED WITH IKA MAY NOT FUNCTION AS INTENDED; (II) THE DETAILS OF THE IKA TOKEN ECONOMICS INCLUDING THE TOTAL SUPPLY AND DISTRIBUTION SCHEDULE MAY BE CHANGED DUE TO DECISIONS MADE BY THE CONSENSUS OF PARTICIPANTS OF THE IKA NETWORK; (III) IKA MAY FAIL TO ATTRACT SUFFICIENT INTEREST FROM KEY STAKEHOLDERS OR USERS; (IV) IKA MAY NOT PROGRESS SATISFACTORILY AND IKA TOKENS MAY NOT BE USEFUL OR VALUABLE; (V) IKA MAY SUFFER FROM ATTACKS BY HACKERS OR OTHER INDIVIDUALS; AND (VI) IKA IS COMPRISED OF OPEN-SOURCE TECHNOLOGIES THAT DEPEND ON A NETWORK OF COMPUTERS TO RUN CERTAIN SOFTWARE PROGRAMS TO PROCESS TRANSACTIONS, AND BECAUSE OF THIS MODEL DWALLET LABS AND THE IKA FOUNDATION HAVE LIMITED CONTROL OVER IKA. RISKS RELATED TO BLOCKCHAIN TECHNOLOGY IN GENERAL AND IKA IN PARTICULAR MAY IMPACT THE USEFULNESS OF IKA, AND, IN TURN, THE UTILITY OR VALUE OF IKA. THE SOFTWARE AND HARDWARE, TECHNOLOGY AND TECHNICAL CONCEPTS AND THEORIES APPLICABLE TO IKA AND IKA ARE STILL IN AN EARLY DEVELOPMENT STAGE AND UNPROVEN, THERE IS NO WARRANTY THAT IKA WILL ACHIEVE ANY SPECIFIC LEVEL OF FUNCTIONALITY OR SUCCESS, NOR THAT THE UNDERLYING TECHNOLOGY WILL BE UNINTERRUPTED OR ERROR-FREE, AND THERE IS AN INHERENT RISK THAT THE TECHNOLOGY COULD CONTAIN WEAKNESSES, VULNERABILITIES OR BUGS CAUSING, POTENTIALLY, THE COMPLETE LOSS OF ANY IKA TOKENS HELD BY IKA USERS. AS WITH MOST COMMONLY USED PUBLIC BLOCKCHAINS, IKA IS ACCESSED USING A PRIVATE KEY THAT CORRESPONDS TO THE ADDRESS AT WHICH THEY ARE STORED. IF THE PRIVATE KEY, OR THE "SEED" USED TO CREATE THE ADDRESS AND CORRESPONDING PRIVATE KEY ARE LOST OR STOLEN, THE TOKENS ASSOCIATED WITH THAT ADDRESS MIGHT BE UNRECOVERABLE AND WILL BE PERMANENTLY LOST. PUBLIC BLOCKCHAIN-BASED SYSTEMS, INCLUDING IKA AND THE UNDERLYING SUI NETWORK, DEPEND ON INDEPENDENT VERIFIERS, AND THEREFORE MAY BE VULNERABLE TO CONSENSUS ATTACKS INCLUDING, BUT NOT LIMITED TO, DOUBLE-SPEND ATTACKS, MAJORITY VOTING POWER ATTACKS, RACE CONDITION ATTACKS, AND CENSORSHIP ATTACKS. THESE ATTACKS, IF SUCCESSFUL, COULD RESULT IN THE PERMANENT LOSS OF IKA. IKA, IKA, AND BLOCKCHAIN TECHNOLOGY ARE NASCENT, AND THERE MAY BE ADDITIONAL RISKS NOT DESCRIBED ABOVE OR THAT MAY BE NEW OR UNANTICIPATED. WE RECOMMEND ONLY USING IKA OR HOLDING IKA IF YOU ARE FAMILIAR WITH THE TECHNOLOGY AND AWARE OF THE RISKS.
TEN BILLION TOKENS (THE “TOKENS”) WERE ORIGINALLY ISSUED, GENERATED, MINTED, AND/OR OTHERWISE BROUGHT INTO EXISTENCE BY DWALLET LABS LTD., A LIMITED LIABILITY COMPANY (“DWALLET LABS”), IN OR AROUND JANUARY 2024, UNDER AND IN CONNECTION WITH THE DECENTRALIZED PROTOCOL INITIATIVE KNOWN AS THE “DWALLET NETWORK” AND BEARING, FOR ALL INTENTS AND PURPOSES, THE INITIAL TOKEN SYMBOL “DWLT.” ALL SUCH TOKENS WERE, AS OF THE DATE OF THEIR INITIAL ISSUANCE, EXCLUSIVELY OWNED, HELD, AND CONTROLLED BY DWALLET LABS, FREE AND CLEAR OF ANY LIENS, ENCUMBRANCES, OR ADVERSE CLAIMS OF ANY NATURE. IT IS PRESENTLY CONTEMPLATED, AND PREPARATIONS ARE UNDERWAY, FOR THE DWLT TOKEN TO UNDERGO A PROTOCOL-LEVEL TECHNICAL AND STRUCTURAL UPGRADE AND/OR MIGRATION, PURSUANT TO WHICH IT SHALL BE MIGRATED INTO A SUI-BASED TOKEN DESIGNATED AS THE “IKA” TOKEN, IMPLEMENTED AS A SUI MOVE NATIVE COIN (I.E., CONFORMING TO THE NATIVE DIGITAL ASSET STANDARDS OF THE SUI BLOCKCHAIN), AND BEARING THE NEW TOKEN SYMBOL “IKA,” WHICH SHALL SERVE, FUNCTIONALLY AND NOMINALLY, AS THE NATIVE UTILITY TOKEN OF THE DECENTRALIZED NETWORK HEREINAFTER REFERRED TO AS THE “IKA NETWORK.” THE ODSY FOUNDATION, A NON-PROFIT FOUNDATION DULY FORMED AND VALIDLY EXISTING UNDER THE LAWS OF THE CANTON OF ZUG, SWITZERLAND (THE “FOUNDATION”), IN A “RECOGNITION AGREEMENT” HAS EXPRESSLY ACKNOWLEDGED, AFFIRMED, AND RECOGNIZED THE DWALLET NETWORK, AS THE LAWFUL, TECHNICAL, AND CONCEPTUAL SUCCESSOR TO THE ORIGINAL “ODSY NETWORK” AND ITS ASSOCIATED CRYPTOGRAPHIC TOKEN, DENOMINATED “ODSY,” WHICH THE FOUNDATION WAS INITIALLY ESTABLISHED TO SUPPORT, PROMOTE, AND FOSTER. IT HAS SINCE INCLUDED DWALLET NETWORK CONTEMPLATED CONTINUATION, TRANSFORMATION, AND/OR REBRANDING AS THE IKA NETWORK UNDER THE SAME RECOGNITION AGREEMENT AND PRESENTLY UNDERGOING A FORMAL LEGAL NAME CHANGE TO THE “IKA FOUNDATION”. TO THAT END, AND IN FURTHERANCE OF THEIR RESPECTIVE STRATEGIC OBJECTIVES, THE FOUNDATION AND DWALLET LABS HAVE ENTERED INTO A MUTUALLY BINDING AND LEGALLY ENFORCEABLE COLLABORATION AGREEMENT (THE “COLLABORATION AGREEMENT”), PURSUANT TO WHICH THE PARTIES HAVE AGREED TO ENGAGE IN GOOD FAITH COOPERATION, COORDINATION, AND ALIGNMENT WITH RESPECT TO THE JOINT DEVELOPMENT, SUPPORT, AND EXPANSION OF THE IKA NETWORK ECOSYSTEM AND RELATED COMMUNITY INITIATIVES. IN ACCORDANCE WITH THE EXPRESS TERMS AND CONDITIONS SET FORTH IN THE COLLABORATION AGREEMENT, ANY AND ALL ECONOMIC RIGHTS, ENTITLEMENTS, AND/OR BENEFICIAL INTERESTS ARISING OUT OF OR RELATING TO THE ISSUANCE, ALLOCATION, TRANSFER, UTILIZATION, COMMERCIALIZATION, OR MONETIZATION OF THE TOKENS AND/OR ANY DWALLET LABS TRADEMARK (INCLUDING, WITHOUT LIMITATION, ANY REVENUES, PROCEEDS, ROYALTIES, RESIDUALS, OR OTHER FORMS OF DIRECT OR INDIRECT ECONOMIC BENEFIT) SHALL VEST IN DWALLET LABS, AND THE FOUNDATION’S ROLE UNDER THE COLLABORATION AGREEMENT SHALL BE FOCUSED ON THE PARTICIPATION IN DESIGNATED COMMUNITY-FOCUSED ACTIVITIES, PROGRAMS, AND/OR CAMPAIGNS, INCLUDING, WITHOUT LIMITATION, THOSE INVOLVING TOKEN ALLOCATIONS EARMARKED FOR COMMUNITY ENGAGEMENT, INCENTIVIZATION, ECOSYSTEM GROWTH, AND OTHER PURPOSES OF A NON-COMMERCIAL, COMMUNITY-BENEFIT NATURE, ALL AS MAY BE FURTHER DEFINED AND AGREED UPON BY THE PARTIES. THE RELATIONSHIP BETWEEN THE FOUNDATION AND DWALLET LABS IS SUBJECT TO CHANGES AND THE INFORMATION PRESENTED HERE MIGHT NOT REPRESENT THE EXACT NATURE OF SUCH RELATIONSHIP AT ANY GIVEN POINT IN TIME.
THIS DOCUMENT AND ITS CONTENTS ARE NOT, AND SHOULD NOT BE CONSTRUED AS, AN OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, ANY TOKENS, NOR SHOULD IT OR ANY PART OF IT FORM THE BASIS OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT WHATSOEVER. THIS DOCUMENT IS NOT ADVICE OF ANY KIND, INCLUDING LEGAL, INVESTMENT, FINANCIAL, TAX, OR ANY OTHER PROFESSIONAL ADVICE. NOTHING IN THIS DOCUMENT SHOULD BE READ OR INTERPRETED AS A GUARANTEE OR PROMISE OF HOW THE IKA NETWORK OR ITS IKA WILL DEVELOP, BE UTILIZED, OR ACCRUE VALUE. ALL INFORMATION IN THIS BLOGPOST / DOCUMENT IS PROVIDED ON AN “AS IS” ON A NON-RELIANCE, NON-BINDING BASIS WITHOUT ANY REPRESENTATION OR WARRANTY OF ANY KIND. THIS DOCUMENT ONLY OUTLINES CURRENT PRINCIPLES, WHICH COULD CHANGE AT THE DISCRETION OF VARIOUS PARTIES, AND THE SUCCESS OF WHICH WILL DEPEND ON MANY FACTORS OUTSIDE OF DWALLET LABS LTD AND / OR OTHER AFFILIATES OR COLLABORATORS CONTROL. SUCH FUTURE STATEMENTS NECESSARILY INVOLVE KNOWN AND UNKNOWN RISKS, WHICH MAY CAUSE ACTUAL PERFORMANCE AND RESULTS IN FUTURE PERIODS TO DIFFER MATERIALLY FROM WHAT WE HAVE DESCRIBED OR IMPLIED IN THIS DOCUMENT. DWALLET LABS  LTD, ITS AFFILIATES AND COLLABORATORS DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, TO THE FULLEST EXTENT PERMITTED BY LAW WITH RESPECT TO THE FUNCTIONALITY OF IKA AND IKA. WE DO NOT PROVIDE ANY KIND OF REPRESENTATION AND / OR ADVICE OF ANY KIND (INCLUDING WITHOUT LIMITATION: FINANCIAL OR TECHNOLOGICAL) AND NOTHING HEREIN IS SUBSTITUTE FOR RECEIVING PROFESSIONAL ADVICE. WE DO NOT VERIFY AND / OR GUARANTEE THE CORRECTNESS AND / OR ACCURACY AND / OR COMPLETENESS OF THE INFORMATION HEREIN, AND ANY USE AND / OR RELIANCE ON THE INFORMATION HEREIN, IS AT THE READER'S OWN RESPONSIBILITY AND RISK. WE MAY DELETE, AMEND AND / OR UPDATE THE INFORMATION AT ANY TIME WITHOUT PRIOR NOTICE AT OUR SOLE DISCRETION AND WITHOUT ANY OBLIGATION TO DO SO, EVEN IF SUCH AN UPDATE AND / OR AMENDMENT IS REQUIRED AS A RESULT OF NEW INFORMATION BROUGHT TO OUR ATTENTION, FROM EVENTS THAT OCCURRED AFTER THE INFORMATION WAS UPLOADED TO THE WEBSITE, OR WHETHER SUCH AN UPDATE IS REQUIRED DUE TO OTHER CIRCUMSTANCES.}