OM Distribution Updates
Last updated
Last updated
Our mainnet tokenomics proposal was approved by our community in October 2024. We have since made adjustments to further extend vesting conditions and reduce inflation to 3%. This was brought about by community feedback and we have decided to proceed with a revised tokenomics proposal which was presented in two separate votes to ERC20 OM holders and mainnet validator nodes. Both proposals successfully passed with 82.17% of ERC20 OM holders voting to approve and 49.17% of mainnet validators voting to approve.
In order to distinguish between legacy and new OM supply we will use the following terms: i) “legacy tokensˮ: original ERC20 OM with hard cap supply of 888,888,888;
ii) “mainnet staking coinsˮ: newly minted CosmWasm IBC-compatible OM staking coins native to MANTRA Chain mainnet with an uncapped supply.
At genesis, 1,777,777,776 mainnet staking coins have been minted. 888,888,888 mainnet staking coins ( 50% of the newly minted supply) are solely minted to mirror the legacy token supply of 888,888,888 and will be stored in a canonical bridge. The other newly minted 888,888,888 mainnet staking coins will be distributed in accordance with the needs of MANTRA Chain. Our proposed allocations are shown below. Please note that these allocations may be subject to change if requested by exchanges and/or regulators.
67.5% OM Upgrade
This allocation bucket constitutes both the mainnet staking coins minted to replicate the legacy token supply (50.0%) and those minted to provide users with incentives to upgrade their legacy tokens to newly minted mainnet staking coins that can secure MANTRA Chain (17.5%). Explanation of these two purposes below:
50% Existing OM (EVM) 50% of the 1,777,777,776 mainnet staking coins minted in MANTRA Chainʼs genesis block, or 888,888,888 coins, will mirror the legacy token supply. Given widespread public OM liquidity available via centralized and decentralized trading venues, the legacy token supply will initially be preserved. Users can utilize our one-way bridge to facilitate the exchange of legacy tokens for mainnet staking coins. Eventually we will deprecate legacy tokens in favor of mainnet staking coins.
17.5% OM Upgrade The MANTRA Chain genesis block allocates 17.5%, or 311,111,112 mainnet staking coins, for those who have staked legacy tokens prior to mainnet launch. A snapshot mechanism has been deployed to track eligible OM staking. Those users who have staked legacy tokens prior to mainnet launch do not earn continuously compounding rewards but rather the length of time they have staked, according to the snapshots, allows them to earn up to a 1.35x multiple on their staked OM. These OM rewards are distributed upon mainnet launch in the form of mainnet staking coins and are subject to a cliff of 4 months and linear vesting over 44 months thereafter. Any undistributed mainnet staking coins will be transferred into the community pool. It is important to note that the principal legacy tokens staked to earn these mainnet staking coin rewards will remain as legacy tokens. After mainnet, if users wish to convert their principal legacy tokens into mainnet staking coins that can be staked on mainnet for inflationary yield, they can use our canonical bridge to do so without slippage.
12.8% MANTRA Chain Association
This allocation bucket includes those mainnet staking coins provided for ecosystem rewards (2.1%), mainnet private sale (5.6%) and mainnet seed (5.1%).
2.1% Ecosystem 2.1% of the genesis supply, or 37,777,777 mainnet staking coins, is reserved for funding ecosystem initiatives. The MANTRA Chain Association requires strategic reserves for funding protocol development. This mainnet staking coin supply is intended to strategically seed, incubate, and support projects that align with MANTRA Chainʼs value proposition.
5.6% Mainnet Pre-Seed Pre-Seed investors have the right to acquire an allocation from a pool of 5.6% of total genesis supply, or 100,000,000 mainnet staking coins. Investor allocations are subject to a 3 year vesting schedule starting at mainnet launch, with an initial 12 month cliff, followed by a linear unlocking period over the subsequent 24 months governed by onchain smart contracts. During this vesting period, mainnet staking coins will not be included in circulating supply but they will be custodied by pre-seed participants. Funds raised via pre-seed are used to support the overarching purpose of the MANTRA Chain Association as stated above. Any unsold amounts will be used to fund future private sale rounds so as to continue supporting core the development of MANTRA Chain.
5.1% Mainnet Seed Seed investors in MANTRA have helped support growth and development of MANTRA to where it is today. As such, these early investors have the right to acquire an allocation from a pool of 5.1%, or 90,000,000 mainnet staking coins. Investor allocations are subject to a 18 month vesting schedule starting at mainnet launch, with an initial 6 months lockup, followed by a linear unlocking period over the subsequent 12 months. Funds raised via private sale are used to support the overarching purpose of MANTRA Chain Association as stated above. Any unsold amounts will be used to fund future private sale rounds so as to continue supporting core development of MANTRA Chain.
16.9% Core Contributors
16.9% of genesis supply, or 300,000,000 mainnet staking coins, are allocated to Core Contributors of MANTRA Chain. This allocation is reserved for individuals who have made contributions to the development, design, growth and implementation of MANTRA Chain. This includes team members, investors, advisors, moderators and active contributors among other stakeholders. The launch of MANTRA Chain is the culmination of years of dedicated efforts from this group of individuals.
Each Core Contributorʼs token allocation will be subject to a 5 year vesting schedule starting at mainnet launch, with an initial 30 month cliff, followed by linear vesting over the subsequent 30 months.
2.8% Airdrops Establishing a vibrant ecosystem of users, validators and stakers well before mainnet launch is paramount to the success of MANTRA Chain. As such, 2.8% of the genesis supply, or 50,000,000 mainnet staking coins, is allocated for airdrops. 10% will be made available in March 2025, followed by a cliff of 6 months until September 2025, after which linear vesting for the remaining amount will commence, concluding in March 2027. These newly minted coins are to be distributed amongst key Cosmos communities as well as those users who have participated in our promotional campaigns and interacted with the Hongbai testnet. All 50,000,000 mainnet staking coins have been allocated at genesis, with future airdrops coming from the community pool.
