Tokenomics
Introduction
Initia’s native token, $INIT, has a fixed supply of 1 billion (1,000,000,000) tokens. These tokens are split across eight major categories as outlined below.
| Category | Amount | % of Supply | Vesting |
|---|---|---|---|
| Foundation | 77.5M | 7.75% | 50% upfront, remaining 50% vested every 6 months over 48 months |
| Protocol Developers | 150M | 15.00% | 25% after 12 month cliff, remaining 75% linearly vested over 36 months |
| Protocol Sales (Investors) | 152.5M | 15.25% | 25% after 12 month cliff, remaining 75% linearly vested over 36 months |
| Enshrined Liquidity & Staking | 250M | 25.00% | 5% released per year on a block-by-block basis until fully released |
| VIP Rewards | 250M | 25.00% | 7% released per year, linearly distributed over 12 months |
| Binance Launch Campaign | 60M | 6.00% | 100% unlocked |
| Airdrop | 50M | 5.00% | 100% unlocked |
| Echo.xyz Community Sale | 10M | 1.00% | 25% of the total amount on the 12/15/18/24th month post TGE |
Breakdown
Foundation
77,500,000 INIT (7.75% of total supply)
The Initia Foundation’s main goal is to advance the Interwoven Economy, help redefine the boundaries of multichain capabilities, and ensure a vibrant ecosystem of diverse applications. To this end, 7.75% of the total token supply is set aside towards the Initia Foundation for a variety of endeavors—including initial liquidity bootstrapping for Enshrined Liquidity, genesis validator delegations, and future strategic initiatives and ecosystem grants.
Protocol Developers (Team)
150,000,000 INIT (15% of total supply)
Protocol developers, including current and future Initia team members and contributors, have been allocated 15% of the supply in aggregate. All recipients of tokens from this category are subject to a 4 year vesting period that includes a 12 month lock and a 36 month unlocking period.
Protocol Sales (Investors)
Amount: 152,500,000 INIT (15.25% of total supply)
The Interwoven Economy’s progress would have not been possible without the early backing of Initia by its investors. Across three total rounds of fundraises, Initia has been able maintain dilution to investors by 15.25% of the total supply, marking a distinct departure from many other L1 chains with high investor allocations. Similar to tokens allocated to Protocol Developers, tokens in the Protocol Sales category are subject to a 4 year vesting period that includes a 12 month lock and a 36 month unlocking period.
Enshrined Liquidity & Staking Rewards
250,000,000 INIT (25% of total supply)
At the core of the Interwoven Ecosystem is Initia’s Enshrined Liquidity mechanism, which replaces the typical L1 PoS system. In Enshring Liquidity, capital is put to effective use through liquidity provision and allows users to simultaneously provide L1 economic security while earning staking rewards, trading fees, and external ecosystem incentives allocated for voting in VIP gauge votes. Initially, EL & staking rewards have a block-by-block release rate of 5% per year (12,500,000 INIT per year).
Vested Interest Program (VIP) Rewards
250,000,000 INIT (25% of total supply)
Vested Interest Program is Initia’s novel and dominant incentive mechanism that is used to align the interests of all the participants in the Interwoven Economy, including application end users, application builders, and L1 stakeholders. These rewards are wholly allocated to the community of users. VIP rewards are distributed in escrowed form and can be vested through maintaining VIP KPIs over several epochs. Similar to staking rewards, VIP rewards have an initial release rate of 7% per year (17,500,000 INIT per year).
Binance Launch Campaign
60,000,000 INIT (6% of total supply)
For the initial CEX liquidity bootstrapping, 6% of the total supply is allocated towards Binance’s Launch Campaign.
Airdrop
50,000,000 INIT (5% of total supply)
Initia’s airdrop will initially distribute 50,000,000 INIT tokens (5% of the total network supply) to network testers, advocates, and users of the technology who have helped make Initia’s vision of an interwoven multichain world possible. These tokens will be immediately available on genesis for eligible participants to claim.
Echo.xyz Community Sale
10,000,000 INIT (1% of total supply)
Tokens in this category have been allocated to the community of users who participated in Echo.xyz’s investment round. Tokens in this category unlock in four equal tranches 12/15/18/24 months post-genesis.
Release Schedule
The monthly and annual release schedules for the Initia token for the first four years are shown below.
Annual Release Schedule
Monthly Release Schedule
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