An introduction to ROUTE tokenomics: investing into the Router ecosystem
Router’s mission has and always will be bringing transparency into the world of DeFi. Everything from the way we set up the tokenomics behind the protocol to our quiet and unassuming seed raise was done in the spirit of open-source building.
This is why we devised our token distribution to be as fair as possible for all of the system’s stakeholders but without sacrificing resources needed to further develop the Router ecosystem. We believe we managed to strike a balance between providing our partners and investors with a meaningful stake in the system and putting the future of the protocol in the hands of the community.
Here’s a detailed breakdown of the $ROUTE token allocation and the vesting process for each of the system’s major stakeholders.
The entirety of $ROUTE’s total supply has been allocated to different groups and entities in the ecosystem. To give everyone skin in the game, the majority of the tokens will remain locked for at least 3 months, with a significant part of the holdings released through small monthly unlockings.
Out of the 20,000,000 tokens, only 1,022,865 were unlocked on day 0, leaving 94.34% of the supply locked for between 3 and 21 months.
The latest seed round saw 3% of the total 20 million $ROUTE coins allocated to a consortium of crypto investors from the US and Asia.
To ensure all of our investors have skin in the game, the tokens allocated to them will be completely locked for 6 months. After the initial 6 months, a total of 20% of their tokens will be unlocked, followed by a linear unlock for a period of 9 months.
The ROUTE tokens were sold in seed round at a price of $0.175 .
Private Round 1
During our first private funding round, a total of 2.50% of $ROUTE tokens was allocated to investors. Given that these were the first investors into the protocol that needed to be encouraged to participate in the system, they were able to unlock 20% of their tokens on day 0.
The rest of their tokens will be unlocked over the next 9 months, locking them into the ecosystem.
The ROUTE tokens were sold in this round at a price of $0.200 .
Private Round 2
The second private funding round was significantly more interest, with 5.11% of $ROUTE’s total token supply allocated to a select group of investors. 20% of the tokens were unlocked on Day 0. The other 80% of the allocated coins will be unlocked over next 9 months, exactly like for the first round investors.
The ROUTE tokens were sold in this round at a price of $0.275 .
Ensuring a fair and stable reward distribution for those staking in the Router ecosystem was a top priority and required allocating a significant portion of our supply to it. The reward pool will hold 17.22% of the total supply and have only 0.92% of the tokens unlocked on day 0. The rest of the tokens will be locked in Router’s smart contract to be distributed daily in the next 12 months.
Learning from the mistakes of countless DeFi protocols and blockchain companies, we decided to give ourselves only a 15% stake in the total circulating supply of $ROUTE tokens. It was of the utmost importance for us to establish a level of trust with the community, which is why all of the tokens allocated to the development team will remain locked for 9 months.
After 9 months, 10% of our allocation will be unlocked, while the test will be unlocked, again in small increments, every month for 12 months.
While it was never our goal to create a speculative asset out of $ROUTE, we understand the value of monetary incentives, especially in a community as decentralized as Router’s is. This is why we have allocated the largest portion of our total supply to the ecosystem fund, which will see the funds distributed to projects and developers looking to build on Router.
A total of 5,084,000.00 $ROUTE tokens, or 25.42% of the circulating supply, has been allocated to the ecosystem fund. Only 8%, or 406,720 tokens, will be unlocked on day 0. Following the initial distribution, 7% of the tokens will be unlocked after 3 months, following which they will see 5% unlocked every month until the fund is depleted.
Liquidity Provision Fund
A great protocol is worth nothing without liquidity. Our goal with the liquidity fund was to create a system that facilitates movement and action. The fund received 1.75% of $ROUTE’s total supply, with 22.86% of the 80,000 tokens unlocked on day 0.
The remaining 270,000 tokens will be unlocked quarterly for the next 12 months
Incentivizing good behavior on the platform should start with the Router Foundation. This is why we allocated 20% or 4,000,000 $ROUTE tokens to the foundation.
The entirety of their tokens will be locked for a period of 9 months, after which only 10% of their holdings will be released. This will be followed by a monthly unlocking process which will last for 12 months.
Partners and Advisors
Router’s partners and advisors, while very important to the ecosystem, have a relatively small stake in the system. We allocated 10% of $ROUTE’s total supply or 2,000,000 tokens, to a number of companies and experts that support our network.
Only 10% of the allocation has been unlocked on day 0 — the rest of the funds will remain locked for another 3 months. After the initial 3 months are over, another 10% of their tokens will be unlocked, with small increments continuing to unlock daily for 9 more months.
The tokenomics vesting/allocation schedule may change if governance DAO votes to do so.
Router Protocol is building a suite of cross-chain liquidity infra primitives that aims to seamlessly provide bridging infrastructure between current and emerging Layer 1 and Layer 2 blockchain solutions.
Telegram announcements: https://t.me/router_ann