CLOUD is the governance token of the Sanctum ecosystem. Launched in 2024, Sanctum is a Solana-based protocol designed to enhance the liquid staking ecosystem. By allowing users to stake SOL either natively or through liquid staking tokens (LSTs), Sanctum aims to create a unified liquidity layer that ensures seamless and efficient swaps. This platform supports the fair pricing and instant tradability of all LSTs, making liquid staking more accessible and capital-efficient for users.

The founders of Sanctum, Jesse Cho, FP Lee, and Jaye Tan, bring extensive experience in software development, blockchain design, and legal expertise, respectively. Their combined efforts have resulted in a platform that not only facilitates staking but also integrates advanced liquidity management features to optimize the staking process on Solana.

How CLOUD Works

Sanctum operates through several key components that work together to provide a robust staking and liquidity solution. At the heart of its ecosystem is the Infinity Pool, a multi-LST liquidity pool that facilitates swaps between all whitelisted LSTs. Unlike traditional liquidity pools that typically support only two assets, the Infinity Pool can handle millions of different LSTs. Users can deposit any LST into the Infinity Pool and receive the INF token, which accrues both staking rewards and trading fees. This dynamic structure ensures fair pricing based on the SOL contained within each stake account.

Sanctum also employs a dynamic fee structure that aligns economic incentives with the maintenance of liquidity balance. Fees are adjusted based on the pool's current asset allocation, encouraging trades that rebalance the pool and optimize liquidity distribution across all supported LSTs. This approach enhances the platform's efficiency and stability, ensuring a seamless user experience.

Additionally, Sanctum's Reserve Pool provides deep liquidity for all liquid staking tokens on Solana, enabling instant unstaking and supporting the entire liquid staking ecosystem. This reserve acts as a critical backstop for emergency unstakes, ensuring that any LST, regardless of size, can be used across decentralized finance (DeFi) platforms without liquidity concerns.

What Is CLOUD Token Used For?

The CLOUD token is the governance token for the Sanctum platform, playing a crucial role in its decentralized decision-making processes. It has a total supply of 1 billion tokens. CLOUD holders participate in voting on key issues such as prospective partners and strategic directions. To qualify for the Sanctum Verified Partner program, prospective partners must stake CLOUD tokens. This ensures that only committed and credible partners are involved in the ecosystem.

CLOUD tokens have multiple utilities within the Sanctum ecosystem. Besides governance, they are used to support various new products and services that Sanctum plans to introduce. The tokenomics of CLOUD is structured to support the platform's long-term growth. An initial 20% of the total supply is allocated for launch liquidity, split between an airdrop and seeding liquidity. Another 30% is reserved for the community, to be managed strategically for growth through future airdrops, staking rewards, and grants. The remaining supply is distributed among the strategic reserve, team incentives, early investors, and broad distribution via Jupiter's launchpad.