I wanted to provide you all with an update on our newly revised tokenomic model. As you may know, our old model had the founders holding 20% of the tokens, with the Foundation having another 26.6%, resulting in a combined total of 46.6% of tokens being centrally held. We have always preached about being decentralized and putting our community first, and wanted our model to reflect that even further. This update establishes an improved model that is more community and validator rewards focused.
With this enhancement to our token model, we want to reaffirm community confidence in what we’re building and show, not just tell, that we believe strongly in the future of this business and our network.
So, what changes have we made? In relation to their previous percentages, both the founders and the Foundation are reducing their allocations and shifting to double the validator network. The founders are now holding 64% fewer tokens, and the Foundation is holding about 27% fewer tokens. See below tables. Most importantly, we are doubling the total validator reward pool to incentivize node validation.
We want developers who are excited about building on top of Constellation to have more access to rewards. This new model will not affect anyone who previously purchased tokens, nor will it increase the token supply. We’re not minting any new tokens, we’re merely opening up a larger piece of the network to those that build, adopt, and validate transactions on our network. We hope that this will foster developer growth and a stronger community sentiment for years to come.
|Partners & Advisors||13.43%||537,065,000|
|Partners & Advisors||13.43%||537,065,000.00|
If you have any questions on the new token model or the decisions behind it, please reach out to us on Orion or Discord.
Ben Jorgensen CEO
This paper is for informational purposes only and is not a statement of future intent. Constellation Labs makes no warranties or representations as to the success of the DAG tokens (the “Tokens”), Constellation Labs or related entities (“Constellation”), or the achievement of any activities noted herein, and disclaims any warranties implied by law or otherwise, to the extent permitted by law. No person is entitled to rely on the contents of this statement or any inferences drawn from it, including in relation to any interactions with Constellation, the Tokens or the technologies mentioned in this paper. Constellation disclaims all liability for any loss or damage of any kind (whether foreseeable or not) which may arise from any person acting on any information and opinions relating to Constellation, Constellation’s products and services, the Tokens contained in this statement, or any information which is made available in connection with any further enquiries, notwithstanding any negligence, default or lack of care. Whilst every effort is made to ensure that statements of facts made in this paper are accurate, all estimates, projections, forecasts, prospects, expressions of opinion and other subjective judgments contained herein are based on assumptions considered to be reasonable as of the date of the document in which they are contained and must not be construed as a representation that the matters referred to therein will occur. Any plans, projections or forecasts mentioned in this paper may not be achieved due to multiple risk factors including without limitation defects in technology developments, legal or regulatory exposure, market volatility, sector volatility, corporate actions, or the unavailability of complete and accurate information. All information contained in this document is intended to be indicative only and is not a statement of Constellation’s intentions or a promise of any kind. Constellation expressly reserves the right to to modify its plans at any time. In that event, any new documentation will supersede this document and be made available at https://constellationlabs.io.
These tokens are available for issuance to the employees, consultants, and advisors of the Constellation Foundation, in each case with a vesting schedule commensurate with the token allocation. For example, token grants to employees will be subject to a four-year vesting schedule with a 12-month cliff. Additionally, tokens held in treasury are available to further the mission of The Constellation Foundation.
These tokens are used to incentivize community participation in the Constellation ecosystem through airdrops, developer initiatives, and academic grants that will be available through our community portal.
These tokens are issued to validators on the Constellation mainnet when it is launched in 2019. They are intended to be released over a period of 10 years to validators on the Constellation mainnet.