How should the token be distributed?
First and foremost: we want to give the token to the right people; not those with a short-term outlook constantly whining about price, but to the true believers who help us accelerate Sanctum and Solana. How can we best do that? Remember, we want to reward wealth and earnestness:
Tokenomics reflect the ethos of a project, and our key ethos is as simple as it gets - For a project like Jupiter, there needs to be an equal weight between a focused entity able to constantly recruit world-class talent, build product, and execute strategy, and a wider community able to fact-check, counterweight, and help to course-correct.
- meow, on Twitter
This is well-put. The community must give the team a mandate to execute the Grand Vision with world-class velocity and ambition, but at the same time must make sure to keep the team accountable. IMO, nailing how the token can be best put to use is far more productive than obsessing over a few percentage points in the tokenomics allocation.
Controlled by community (40%)
40% of the total supply will be community-governed. Some part of this will be used in an initial airdrop. I would like the remainder to be broken up over at least 4 rounds of airdrops, although of course the community decides what to do with this at the end of the day.
Controlled by team (47%)
- 25% of the supply has been allocated to founders and core contributors, who have been building Sanctum for more than three years.
- ~16% is the Strategic Reserve, used to grow the Sanctum ecosystem. It is earmarked for future acquihires, strategic investors, LST partners, grant recipients, loans to market makers and CEXes, etc.
- ~5% will be used to seed liquidity in the LFG launch pool.
- 1% will be given to Jupiter LFG.
Allocated to investors (13%)
At present, 13% of the supply has been allocated to investors. We sold some tokens at 50M and some at 60M, most of them back in 2021. I won’t reveal the exact cap table, but the list of our investors is public information and available on our Twitter.
We have worked on Sanctum for three years, including throughout the bear market. We take an appropriately long-term perspective. All team and investor tokens unlock over 3 years with a 1-year cliff. That means that 33% of the tokens will unlock 1 year after TGE, while the other 66% will vest linearly over 24 months after the cliff. All team and investor tokens will be fully vested 36 months after TGE.