The future of Gifto’s Token Management
Core to realizing the Gifto vision for mass adoption is the responsible stewardship of our token supply to develop the project and attract new, long-term users and partners to the Gifto ecosystem. In order to bring further transparency to our token management and demonstrate the Gifto team’s long-term commitment, we are sharing our plans for token releases to power the ecosystem as well as for a smart-contract lockup of “Company Reserve” A.K.A. “Team Tokens.” This plan will be implemented in early Q1 and provide public wallets for “Company Reserve” tokens.
Token Supply Update
As of November 2018, approximately 53% of Gifto’s total supply (1B) is in circulation, with the remaining tokens being roughly split across “Powering the Ecosystem” (~218MM) and “Company Reserves” (~250MM).
Purpose of Allocations
Each of the two remaining allocations play key roles in supporting the Gifto vision.
“Powering the Ecosystem”(~218MM held) — This allocation is used broadly to grow the Gifto ecosystem, and includes using tokens for partnerships which will drive mass adoption. This past year, a key use case of powering the ecosystem tokens were exchange listings and events; as a result, Gifto has a truly global token-holder base and has been listed on the world’s largest exchanges. See this article for more information.
“Company Reserves”(~250MM held) — This allocation is discretionary, with potential use cases including powering the ecosystem, long-term project cost management, and team incentives.
Gifto Token Management Moving Forward
In order to maximize the long-term success of Gifto and growth of the ecosystem, the Gifto team has resolved to implement the following:
- Gifto “Company Reserve” tokens (250MM) will not be accessible until January of 2021. Gifto is extending the period in which the “Company Reserves” cannot be accessed by another year, to 2020. As per our ICO announcement, “Company Reserves” were to be locked-up for two years after our ICO from December 2017 to December 2019. We will extend this lockup to December 2020, for a total of three years after ICO. This will be accomplished via smart contract (see below for more details).
- After the lockup period ends, “Company Reserve” tokens will vest over a two-year period, from 2021 to 2022. This means that 125 million tokens would vest each year during this two-year period. These tokens would not necessarily enter circulation during that time.
- The release of “Powering the Ecosystem” tokens will be “soft-capped” at 50 million tokens annually starting in 2019. This represents 5% of outstanding total supply, or ~10% of current circulating supply. By soft cap, we mean that we would only exceed releasing 50 million tokens per year if an exceptional, significant opportunity to expand the Gifto ecosystem presented itself that required us to go beyond the annual soft cap. Should this scenario occur, the team will provide clarity on why the soft cap surpassed 50 million for that year. In addition, the team may at its discretion use fewer than the 50 million Gifto tokens set by the soft cap in any given year.
Smart contract lockup of “Company Reserve” tokens
We intend to lock-up the “Company Reserve” tokens in a multi-signature smart contract with the ability to withdraw set for January 1, 2021. There will be an annual cap on the number of tokens which can be withdrawn set at 125 million tokens per year for two years, starting January 1, 2021. This smart contract would have a fail-safe allowing us to update it in the event of a catastrophic emergency.
We are currently in the early stages of developing the code of our smart contract and settling on 3rd-party smart contract auditors. We are targeting completion of this process in Q1, at which point the team will provide a webpage to monitor our allocations real-time, and enable the community to monitor the “Company Reserve” wallet, including its smart contract code.
We will update the community on progress towards this regularly through Q1. Note that some aspects of this plan may change based on further research.
Thank you for taking this journey with us as we work towards mass adoption. The Gifto team remains committed to our original vision of mass adoption of the Gifto token, and the implementation of this token management plan is an important step forward in realizing that vision.