Router Community Approves ROUTE 2.0 Tokenomics Proposal Heralding a New-Era of truly native Cross-Chain Dapps

Dear Router Community,

Thank you for your tremendous support and participation in the Route 2.0 (Router Chain) tokenomics proposal.

We are pleased to announce that the community vote on the $ROUTE 2.0 tokenomics proposals has now concluded, with over 60% of votes approving Proposal 2. This milestone caps off the past two weeks of community discussion and signals the next evolution for Router as it transitions from a bridge to a fully decentralized layer-1 blockchain.

Highlights of Approved Proposal

With Proposal 2 now approved, here are some key details on the new $ROUTE tokenomics:

• 10 million new $ROUTE tokens will be added to the total supply at mainnet TGE. Additionally, there will be a split of tokens, which means the overall supply will go from 30M to 1B. The total supply at the mainnet launch (mid-2Q) will be 1B, which means each current $ROUTE will become equivalent to 33.33 new $ROUTE 2.0 tokens.
• Token emissions for the newly minted supply will be allocated as below:

• As a reminder, there will be a 1-year cliff from the mainnet launch before any new tokens enter circulation (~3Q25 based on current timelines), except for validator rewards, which provide security incentives. New tokens will vest linearly over 5 years after the 1-year cliff.

Community-Driven Process

This community vote exemplifies Router Protocol’s ethos of decentralization. The community turned out in strength for this crucial vote on Router’s future tokenomics. Over 1.8 million $ROUTE votes were cast during the proposal period.

With around 20% of the Router token supply sitting on centralized exchanges, 5–7% estimated to be in custody wallets, and over 27% still unvested, the total votes indicate approximately 20% participation from eligible $ROUTE holders.

Given the importance of this vote, a 20% turnout from decentralized token holders with voting rights demonstrates significant engagement within the Router community. The participation also showcases Router Protocol’s committed community of long-term holders who are invested in shaping the protocol’s continued evolution.

The Router team is grateful to everyone who participated in the vote and shared feedback along the way. This community-driven process will serve as a model for Router’s continual evolution as a protocol owned and operated by its users.

Poised for Cross-Chain Adoption

As blockchain interoperability becomes increasingly critical, Router Protocol is strategically positioned to play a leading role in shaping the multi-chain future. The new tokenomics will provide the fuel to power Router’s continued growth and innovation.

Growth of recently launched dApps like Router Nitro, StakeEase, soon-to-be-announced FolioX, CCIF-based primitives like LiquiX, and the upcoming launch of Router Chain mainnet will highlight Router’s capabilities for simplified cross-chain DeFi. More partnerships are also in the works to expand reach across blockchain networks. With a view to accelerating ecosystem growth, we will also be shortly announcing the details of a Router Ecosystem Grants Program. The revamped tokenomics of Router Chain allows us to aggressively focus on community and ecosystem growth and promote a range of exciting new cross-chain primitives.

Once again, thank you to the amazing Router community for your support and participation. This is only the beginning as we embark upon the important goal of chain abstraction using Router Chain!

Tokenomics Proposal FAQs

Q: When will the new tokenomics take effect?

A: The new tokenomics will take effect after the Router Chain mainnet launch, which is targeted for 2Q24. There will be a 1-year cliff from the full mainnet launch before any new token emissions.

Q: How many new tokens will be added to the supply?

A: Proposal 2 approved adding 10 million new $ROUTE tokens. The total supply at the mainnet launch will be 1B, equal to 33.33 new tokens for every 1 existing token.

Q: How will the new tokens be allocated?

A: The new tokens will go towards staking rewards, Router Foundation, ecosystem grants, community incentives and core contributors. The vesting is linear over 5 years, starting one year after mainnet TGE.

Mainnet Launch FAQs

Q: When will Router Chain mainnet go live?

A: Router Chain mainnet is planned for 2Q24, pending any adjustments in the development roadmap.

Q: What do I need to do to prepare for mainnet?

A: If you are holding $ROUTE, no action is required before mainnet. Your tokens will need to be converted to the new native $ROUTE on the Router Chain. Centralized Exchanges will handle the migration behind the scenes. We will share a detailed process close to the mainnet launch for others.

Q: Where can I track updates about the mainnet progress?

A: Progress will be announced on the official Router Protocol channels like Twitter, Telegram, and Discord. The team will post guides as mainnet approaches.

Stay connected with us through our social media channels to get the latest updates and be a part of our growing community.

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