What are the principles behind GTON distribution and its timeline? In this article, we explain the mechanics that underlie the emission of GTON in accordance with pre-defined allocations and vesting outline.
GTON is deflationary by design: its maximum supply is fixed at 21 million tokens, like Bitcoin. The generation of tokens, also called minting, occurs through gradual “unlocking” of the allocated part of supply to specific addresses. Unlocking takes place according to the established schedule represented by the emission curve, and all minted tokens are automatically assigned to a specific category of governance roles. This is why in the vocabulary of Graviton it is usually called farming — the issued tokens are deployed onto existing lists of accounts, depending on their role and activity.
There are several roles in the Graviton’s DAO:
early birds or early backers: those who made a deposit into the treasury at an early stage (early birds or early backers (EB))
backers: those who purchase tokens during the IDOs
strategic partners and investors (SPI): these are potential top-level industry players or strategic investors who enter the treasury in subsequent stages, which may include ecosystem-level actors, VC funds, and AMMs. This category of treasury investors does not undermine early backers’ share and will be negotiated individually case by case in a transparent manner;
contributors are the development team, signers of multisig and governers of the DAO;
operations, or, in other words, expenditure for operational needs, is an allocation aimed at working with the community, like bounty and airdrops, and market making;
LP, or liquidity providers, is the utility-oriented allocation intended for users participating in programs aimed to stimulate liquidity of wrapped assets and Graviton itself.
All these roles have a vesting period when unlocking GTON tokens. In the case of Operations and LP categories, the distribution parameters will be decided by the Graviton governance and are not predetermined. However, for the rest of allocations, e.g. EB (10% or 2.1 mln tokens), the vesting period is based on a special formula as described further.
At the end of the deposit period, all early-bird participants and their treasury balances in dollar equivalent are snapshot from the blockchain. For all backers, it is already predetermined how many tokens they will own (ownable allocation). At the end of the EB period, these tokens from ownable allocation will start getting gradually unlocked every hour, becoming a claimable allocation available for a withdrawal to the user’s wallet.
Initially, GTON will be available for withdrawal on the following networks: Ethereum, BSC and Fantom. The withdrawal in other integrated networks will be implemented in subsequent stages.
Unlocking of the ownable allocation into a claimable allocation follows the formula:
Where C(g) — group (category) token allocation — g, y(t) — emission formula:
where c = 2100000, a = 11099999999999, o is the starting block of farming, x is Ethereum's current block count.
For the EB group, the parameter C is 2.1 mln.
A simplified piecewise scheme shows that by the end of the first week, 5% (105k tokens) will be unlocked, 9% (189k) by the end of the 2nd week, 16% (336k) by the end of the month, 75% by the end of the year, 95% by the end of the next year, and so on.
A similar unlocking formula will be applied to all categories except LP and Ops. For Contributors, allocation will start in three months after the end of EB period; for SPI, two weeks after a finalization of the deal and transaction.
This emission formula provides certain advantages, as it allows for bringing in liquidity to the token at an early stage, gradually increasing its circulating supply without sudden leaps. At the same time, a part of allocations will remain unlocked even after two years from the project’s launch, which leaves all long-term shareholders interested in the future success of the project.