Your Guide to Understanding AlgoDAO’s Token Distribution
Hello AlgoDAO community,
Over the past few days, we have gotten some questions about AlgoDAO’s token distribution. One question specifically draws our community’s attention ― AlgoDAO’s IDO and $ADAO token supply.
AlgoDAO’s team has responded to these questions, but we thought to share with you an explainer blog that describes more precisely our distribution of tokens.
This explainer also provides clarity on how the token distribution is intentionally designed to give the largest share of $ADAO tokens to you, dear members of the AlgoDAO community.
$ADAO token distribution at a glance
In the token distribution chart provided above, investors who participated in AlgoDAO’s seed and private rounds get a combined 10% and 5% of $ADAO token supply, respectively. And the public sale through the IDO delivers 1% of the token supply.
However, another important point to note is that only 7.5% of the allocated token is available to these investors for initial unlock. In contrast, participants in the IDO receive all their tokens in the initial unlock.
Hence, after the IDO, investors in the seed and private rounds will only receive 1.125 million after an initial cliff of three months. In addition to the cliff, the investors in the seed and private rounds are locked into a vesting schedule that runs for 36 months before they obtain full token allocation. In contrast, participants in the IDO will receive the full allocation of 1 million ADAO tokens without a cliff or vesting schedule. Remember that ONLY liquid tokens (the unlocked part) are stakeable and can be used in the AlgoDAO ecosystem.
The investors in AlgoDAO’s seed and private rounds are reputable venture capital firms, such as Borderless Capital and Algorand Foundation, with deep expertise and experience in supporting early-stage projects, such as ours. And as much as AlgoDAO democratizes access to funding rounds that VCs previously controlled; we recognize and acknowledge the value of expertise that institutional investors deliver in catalyzing early-stage projects. The involvement of VCs shape the initialization of the project and brings immense value as the project matures. AlgoDAO is based on democratic and meritocratic foundations and these institutional participants are also members of the AlgoDAO community and their funding, participation and support are in place to maximize AlgoDAO’s chances of success.
Our key partners, the Algorand Foundation and Borderless Capital, have taken on the significant risk by investing in our projects from the beginning; yet, they are subject to a longer than average vesting schedule as part of their commitment to AlgoDAO’s sustainable long-term success.
Post-IDO token distribution
As vesting schedules come into play effectively over time, almost half of $ADAO’s total token supply goes to the community. Specifically, at least 44.5% of $ADAO tokens will be distributed to the AlgoDAO community:
- Liquidity Mining — 7%
- ADAO Staking — 5%
- Community Incentives — 12.50%
- AlgoDAO Ecosystem Fund — 20%
We would like you to know that AlgoDAO is here for the long haul. Distributing a large percentage of ADAO tokens during the IDO will surely benefit early adopters. However, we need to think about AlgoDAO’s sustainable future growth and ensure that the democratic and economic models of the project will not be skewed as the project matures.
Also, the token distribution model that we have adopted ensures that only people with a long-term commitment to AlgoDAO will get most of the tokens through community participation over time.
Nonetheless, we will continue to keep you updated as the project develops.
We are open to our community and we will answer other specific questions you may have during the regular Twitter Spaces.
Connect with us on our social media platforms and community channels.
- Telegram group: https://t.me/AlgoDAOCommunity
- Telegram announcements: https://t.me/AlgoDAOAnnouncement
- Twitter: https://twitter.com/AlgoDAO_fi
- Discord: https://discord.gg/algodao
- Medium: https://medium.com/@AlgoDAO.fi
- LinkedIn: https://www.linkedin.com/company/algodao-fi
