Constellation Tokenomics Update

Dear Community,

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.

OLD MODEL

Founders 20.00% 800,000,000
Partners & Advisors 13.43% 537,065,000
Foundation Tokens 26.32% 1,052,810,165
Community Tokens 2.00% 80,000,000
Validator Rewards 20.00% 800,000,000
Private Sale 18.25% 730,124,835
Total 100.00% 4,000,000,000

 

NEW MODEL

Founders 7.20% 288,000,000.00
Partners & Advisors 13.43% 537,065,000.00
Foundation Tokens 19.12% 764,810,165.00
Community Tokens 2.00% 80,000,000
Validator Rewards 40%  1,600,000,000.00
Private Sale 18.25% 730,124,835
Total 100.00% 4,000,000,000

 

If you have any questions on the new token model or the decisions behind it, please reach out to us on Orion or Discord.

Sincerely,

Ben Jorgensen CEO

Disclaimer

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.

Definitions:

 

Foundation Tokens:

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.

Community Tokens:

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.

Validator Rewards:

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.

Constellation Announcement: Company restructure and strategic update

Dear Constellation Community,

First off, I would like to take the time to apologize for being silent and not having a consistent cadence of communication. Constellation has been growing and going through some organizational shifts which has caused us to go heads down. Even while we were restructuring the organization, we made headlines by being one of the first scalable protocols to be a part of the Linux Foundation’s HyperLedger (the genesis of modern computing) and joining the largest mobility consortium, MOBI.

Brendan is stepping down as the CEO of Constellation Labs and as a member of the Constellation Foundation board to focus his attention on his passion for the consumer adoption of blockchain technology in developing economies and nations. Constellation has been restructuring the organization where the founders empower cross-departmental alliances and decision-making. The company has named Ben Jorgensen CEO and Brendan’s tokens remain with the foundation.

As a result, Brendan sees an opportunity to leverage his strengths to other blockchain and community-based initiatives. Given his strengths that include product development, growth, and design, as well as engaging with a broad community, he sees the opportunity to support Constellation and the blockchain space as a whole while not being a part of the day to day operations. Stepping back from Constellation will allow the organization to focus on building and deploying the Constellation mainnet. Constellation wishes Brendan the best in his future endeavors.

I’m very excited to accept the position of CEO and thankful for the team’s input and validation. A lot of my prior experience to Constellation has been growing and advising early to mid-market organizations. All of the partnerships and engineering developments have been made by empowering the organization with a streamlined vision and implementing  OKR’s (a method of measuring milestones and successes in the organization).

Going forward, I will be doing the following in order to facilitate ongoing communication with our amazing investors:

  • Monthly Token Holder Update: which you will receive on the last Monday of every month
  • Quarterly Token Holders Calls: to review strategy and state of the organization
  • Weekly Company Highlights/Newsletter

Below is a breakdown of our new strategic direction. In the meantime, if you have any questions please feel free to reach out directly in email or suggest a call time.  

Focus on Technology

Ultimately, our promise to you and the wider community is to build groundbreaking Distributed Ledger technology for consumers and businesses alike. We’re re-allocating considerable funds to the core engineering team, and away from marketing and community initiatives. The industry is moving at an incredible speed, and in order to maintain the interest of enterprise groups, we need to accelerate the roadmap towards adoption. We’ve established direct relationships with a number of clients (direct and through consortiums), and they need to see open APIs and a functioning network to test potential integrations.  In order to deploy and retain our current conversations, the engineering team will continue to expand as we invest in new tools, infrastructure, and personnel.

Building on Recent Partnerships

We are now members of some of the most influential blockchain consortiums, which include the likes of IBM, Cisco, and FedEx among their partners. We’re at the table with these companies, and we need to pull additional resources to maintain our active presence in groups like HyperLedger and MOBI. These partnerships are not passive and require continued management from a marketing and business perspective. We’ve seen a huge return in value from investing in these groups, and we need to continue to do so.   

Why is this so exciting?

Essentially, these organizations are how enterprise organizations vet out the opportunities in the blockchain industry. Additionally, Linux is a foundation that basically invented modern-day computing. Our participation enables us to create a loud voice in the industry. We are already seeing PoC (proof of concept) requests come in from large organizations. This is a one-to-many approach and gives us more access, more feedback, and more clout across partnerships.

Delay International Community Building

Over the past few months, we’ve seen a direct correlation of code updates, whitepaper releases and engineering updates having positive effects on $DAG and the overall community sentiment. On the flip side, we’ve seen poor returns from paid global community building. This is mainly due to the current bear market cycle we are experiencing and a general shift in the ecosystem. Developers and investors alike favor actual tech buildout and use cases over a purely speculative basis. Therefore, we will continue to grow organically by leading with technology versus paid outreach. We have an incredible team of community managers who we will continue to work closely with and engage the wider crypto community — these initiatives are not going away, and we will restart our efforts in line with our tech rollout and an expected market turn.

PR Announcement

We’re excited to announce a new partnership with Sutherland Gold, Silicon Valley’s premier PR agency who counts Bill.com, Cloudflare and SurveyMonkey amongst other clients. They have successfully helped launch a number of blockchain businesses, such as Circle. Our partnership marks a renewed approach to press relations, with an emphasis on enterprise. They are helping us shape our messaging and build momentum around our new and existing industry partnerships.

 

Sincerely,

 

Ben Jorgensen (CEO)

Business Use Cases for Scalable Blockchain

The world economic forum has identified that we are well underway in the Fourth Industrial Revolution.  This industrial revolution, unlike previous industrial revolutions, is characterized by as the “fusing of the physical, digital and biological worlds, impacting all disciplines, economies and industries, and even challenging ideas about what it means to be human.” (Klaus Schwab).

How can Blockchain Help you?

Understanding the Obstacles to Adoption and Unlocking Abundance

 

Two weeks ago, Brendan (co founder and CEO of Constellation Labs) and I gave a talk to a group of engineers from Tesla, Google, Facebook, Oracle, and Apple at a blockchain meetup in Sunnyvale (watch it here). After hearing the first presenter articulate what bitcoin and blockchain is – we realized that people were looking for a bit more in the weeds understanding – the why.