It’s almost time. On the 7th of July, we’ll announce all the official details about the OMS token generation event (TGE) and completely new utilities. We designed them with long-term value in mind. But OMS is not only about new technology and new utilities. We’ve prepared the tokenomics upgrade that is going to position OMS for growth and bring a completely new level of transparency, sustainability, and security.
OMS Tokenomics — Benefits in numbers
- More than 50% of the total supply will be unlocked linearly for 50 years instead of being unlocked without current purpose.
- Instead of 85% OSEA circulating supply (in a month 5% Team and 5% Ecosystem would be unlocked), we will have 20% tokens in circulation. This means over 4x smaller market cap.
- The 65% difference lies in Ecosystem Fund (5% unlocked on TGE vs. 20%), Team (5% unlocked instead of 10% — we locked our soon-to-be-unlocked 5% for another year), Liquidity (10% unlocked vs. 20%), moving the unused allocations (35%) to Ecosystem Fund with a 50-years unlock period.
- A significantly higher share of Holders’ holdings in the circulating supply.
- The total allocation for Liquidity is 10% higher but spread over 5 years of linear unlock.
- All unlocks will occur in a linear way over the decades — no drastic unlocks/emissions.
- Ecosystem Fund, as the most important allocation on which we have a long-term vision, is increased from 30% to 55%. Only 5% will be unlocked on TGE (instead of 20% unlocked OSEA for this purpose), and with the 2-year cliff, the remaining 50% (of all OMS supply) will be unlocked linearly for 50 years. This means that in 7 years from now, the Ecosystem Fund allocation will only increase supply by 5%.
- Cutting the number of allocation categories and allocating as much as 55% to the Ecosystem Fund, was designed with Omnisea DAO in mind. As a 100% Community-owned protocol, Omnisea will someday turn into DAO which will have extensive Governance powers such as content moderation (while remaining a permissionless protocol, but with the possibility of community intervention when it is justified via voting).
Motivation
The token migration is giving us a one-time possibility to improve aspects that have become obvious from the perspective of time and have been pointed out by the Community quite a lot. Let’s go through them one by one.
Locking tokens that were unnecessarily unlocked
OMS maximum supply will remain the same as OSEA — 1,000,000,000. Having that said, the mass of unused OSEA tokens isn’t transparent enough and doesn’t fill new, potential Holders with confidence.
Building Ecosystem Fund with 50-year vesting
While designing the governance token, we have to reject any goal that isn’t critical in the long term. The ability to make reasonable, strategic reallocations and lockups, will immediately and significantly heal the token structure and set OMS for the value accrual (especially combining with strong new utilities, and burn mechanism that we’ll introduce in a few days). In the coming months and years, we’ll progress more and more into truly Community-owned protocol with staking, Protocol Revenue sharing (January), and ultimately Omnisea DAO with extensive rights over the protocol governance (Launchpad/assets creation protocol will always remain permissionless, DAO will have the ability to moderate via voting).
Market cap will be more attractive
The new tokenomics will provide a ~4x lower market cap (than OSEA) without any incoming unlocks and emissions. In fact, we’re increasing all the lock periods, including for the Team allocation. The lower market cap is the bigger margin for growth. This can of course only be true, if the circulating supply (current market cap) won’t catch the maximum supply (FDV) too fast. With OMS, that’s fortunately not the case, as the last unlocked tokens won’t be in circulation for more than 50 years from now.
Increasing the general public share
Previously, with OSEA, due to so many tokens being already unlocked, not only circulating market cap was diluted but also the share of organic holders (Community) on the pie chart wasn’t impressive and it may have made a bad impression on seasoned investors. With OMS and its tokenomics, this problem is solved and the holding structure will be healthy.
The Tokenomics summary — the new allocations
- Ecosystem Fund (Treasury, Governance): 55% in total, 5% unlocked on TGE, a 2-year cliff, and 50% unlocking linearly for 50 years.
- Team: 15% in total, 5% unlocked on TGE, the upcoming 5% unlock postponed for an additional year, 2-year linear vesting.
- Liquidity (Markets: Pools, Listings, OSEA Holders): 30% in total, 10% unlocked on TGE, 5-year linear vesting.
