Session Token: Genesis Distribution
With the Session Token Swap Program announced and the first ever Session Lab Update dropped — things are progressing quickly with Session Token. Today we’re here to drop some new information about the Genesis Distribution.
This doc explains what the state of play will be at token generation along with projections for the first few years of Session Token’s existence. There are a lot of moving pieces here, including tokens which are time-locked, tokens which are purpose-locked, and tokens which will be released using the Staking Reward Pool. We’re going to do our best to make sure these sometimes-complicated numbers are easy to understand and that you’ve got a clear picture of your standing in the future of Session Token.
This is a guide for our future plans, but flexibility and adaptability are required for success — and so sometimes things might need to change. Nonetheless, strap yourselves in and grab your reading glasses. Let’s crunch some numbers.
TL;DR (but really, please read it):
Up to 80 million Session Tokens unlocked at TGE.
60 million from Session Token Swap Program (75% TGE supply)
6 million for Project Treasury (7.5% TGE supply)
14 million for the Ecosystem and Community Fund (17.5% TGE supply)
Varying lock-ups for the remaining 160 million Session Tokens.
The lockups put simply:
Staking Reward Pool contains 40 million locked tokens at TGE. Network rewards begin unlocking immediately.
All other tokens are locked for a minimum period of 12 months after TGE. Some can be staked, some cannot (see below).
If tokens are not sold in the strategic token sale, they will be added to the Staking Reward Pool.
Session Token Lockups
As we already alluded to, there are a few different types of lockups that can apply to Session Tokens. Overall, up to 80,000,000 Session Tokens will be unlocked at the Token Generation Event (TGE). This leaves 160,000,000 Session Tokens which are subject to some kind of lockup and thus not part of the liquid supply at TGE. These are the different lockup terms which currently exist.
Lockup A: Staked
Tokens are time-locked using a smart contract for 24 months following TGE. Tokens in this smart contract can be staked for participation in the Session Node Network. Rewards earnt through active staking are, as per usual, immediately accessible.
Lockup B: Linear
Tokens are time-locked using a smart contract for 24 months following TGE. Tokens in this smart contract cannot be staked. 12 months following TGE, a 12 month linear unlock begins at a rate of 8.33% claimable per month.
Lockup C: Unlocked
Tokens are distributed at TGE with no associated lockups or restrictions.
Lockup D: Long term commit
Tokens are time-locked using a smart contract for 3 years following TGE. Tokens in this smart contract cannot be staked. 12 months following TGE, a 24 month linear unlock begins (at a rate of 4.16% claimable per month). When these tokens are allocated to any team member, there are performance and operational requirements which must be met before tokens are received.
Lockup E: Staking Reward Pool
Tokens are locked in a smart contract and released at a rate of 14% per year (recalculated per block). The rate of 14% is calculated relative to the total amount of Session Tokens in the Staking Reward Pool, and new Session Tokens may be added to the pool.
What goes where?
Okay, okay — that’s a lotta different lockups. But which tokens go where? How much is available, and when? Let’s go through and assign a condition to every single allocated Session Token.
Keep in mind that these are just projections — they are not able to fully account for more dynamic situations where tokens are added to the Staking Reward Pool.
Thanks to the Treasury changes brought on by Chainflip’s success, we may reduce, limit further or scrap any further Strategic Token sales. Although we are leaving this open and available for key strategic partners who can assist the project reach optimal heights in the future.
Some notes about this chart:
This chart assumes that the Staking Reward Pool has zero token inflow from premium features and on chain subscriptions through apps like Session or Lokinet.
Remaining Strategic sale tokens are not shown, as it is currently unclear whether these funds will even be sold or subject to sale lockup similar to A/B. Whatever is not sold will be allocated to the Staking Reward Pool.
This chart assumes all currently sold Session tokens will participate in lockup B, in reality strategic parties can choose between lockup A and B before TGE. We will update this chart once strategic parties inform us of their choice.
This chart assumes all coins from the Oxen Coin Claim are claimed, it does not reallocate unclaimed coins to the Staking Reward Pool prematurely.
Want an even MORE detailed breakdown? Sure thing, here ya go.
But why do you need Session token?
So you’ve got the distribution, but how does the system work? Session token is a critical piece of the puzzle, but there’s a lot going on.
Super-speed summary in case you don’t have time to check out the full write-up:
Session is growing quickly and there is demand for it: we are set to hit 1,000,000 MAU relatively soon
This is an entirely new tokenomic system, with changed up active reward schemes and incentives, putting Session at the centre of it all
Session Pro MVP is on the way next year
We are looking to tap into some of the amazing things being built in web3 to accelerate more
If you would like to know more about Session Token’s utility and tokenomics, watch out for a companion article dropping in the near future.
Keep your eyes peeled
We’re working hard every single day to keep developing and progressing towards the future of Session Token. These numbers are still developing, and we will be ready to make changes if needed to ensure the success of the project.
For now, the previous Oxen Question Box is closed, and a second AMA will be released answering those questions next week.
As this is a lot of new information, we are also opening a new Question Box specifically for the token distribution. You can find that here.
We look forward to hearing more from the community about Session Token.
Let’s send it.
Edit: Updated grid under 'What goes where?' for visual appeal on 20 December 2023. Original can be seen here.
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