Alkemi Network Progressive Decentralization Update Q3 2021

Blockchain Brian
Sep 30 · 5 min read

We are excited to announce that Alkemi Network’s Token Generation Event (‘TGE’) occurred on September 9th, 2021. The next stage of progressive decentralization has begun and the migration towards full community ownership of the Alkemi Network is underway.

We are very pleased to see the growth and adoption of Alkemi Earn to date; protocol-wide TVL stands at $35m+ with 75+ users.

This post will provide a Q3 2021 protocol update on the following topics:

  1. Token Generation Event (‘TGE’); Minting of ALK tokens and ALK token distribution
  2. ALK Token Utility; progressive decentralization and DAO governance
  3. Alkemi Earn Open (permissionless) pool is now live
  4. What’s next?

TGE: Alkemi Network Token Generation Event

200 million Alkemi Network DAO Tokens (‘ALK’) were minted on 9th September 2021

Official ALK token contract address: 0x6C16119B20fa52600230F074b349dA3cb861a7e3

The ALK token can be found at the following addresses:

ALK Governance Token Utility

Alkemi Network is the first decentralized liquidity network to facilitate both permissioned (‘Verified’) and permissionless (‘Open’) liquidity pools governed by one utility token. ALK holders will be able to propose and vote on decisions concerning protocol parameters on both pools, including setting interest rate models and base fee structures, administering asset markets, updating protocol contracts and risk parameters and amending administrative roles.

Token Economics & Distribution

While 200 million tokens have been minted, the initial supply at Day 0 of TGE was set at 100 million tokens, in line with the company’s initial capitalization structure pre-TGE.

Please see the following table for the 100 million ALK token initial supply distribution groups:

Post TGE and ALK tokens minted, the Network initiated its progressive decentralization rollout strategy. As Alkemi Network continues to scale and decentralize, token supply and stakeholder distribution increase. The liquid ALK token supply will gradually increase on a block-by-block basis over the next four years to 200 million.

Please see the below schedule for details on how tokens will be distributed at the completion of the four year vesting period. Note: the start of the four year vesting period was triggered at TGE on 9th September 2021.

Please note the following:

  • Out of the total token supply, approximately 9 million (~9%) are liquid and available to token holders
  • Investors’ tokens (20% of total ALK token supply) are vesting over monthly schedules ranging from 6 months to 4 years
  • The full allocation of 40 million ALK tokens were distributed to Investors at TGE
  • 20% (~8 million) of investor token allocations liquid as of TGE; 1-month cliff and monthly vest thereafter
  • The remaining 80% are still locked, vesting directly in wallets on a monthly basis
  • Note that investors were the only distribution category to receive a liquid portion of ALK at TGE
  • Early Liquidity Providers (ecosystem) have a monthly vesting schedule over 6 months
  • New liquidity mining program launched post-TGE
  • All other token allocations (Liquidity Mining Program, Alkemi Network Foundation, Team & Advisors) have a monthly vesting schedule over 4 years. Tokens distributed are gradually unlocked and become part of the liquid supply.

Token holders can track and view overall supply distribution here:

https://etherscan.io/token/0x6C16119B20fa52600230F074b349dA3cb861a7e3#balances

Token holders can check vesting directly here via their address:

https://etherscan.io/address/0x324c8eA24f1673311F2eb418064C1c5fA064bF9D#readProxyContract

*Check function name spendableBalanceOf to be clear on what has vested

Progressive Decentralization: DAO Establishment and Governance Kickoff

With the minting of ALK tokens, we have completed an important milestone in our progressive decentralization journey. While the Alkemi Network has been established as a DAO with the appropriate on-chain governance functionality, the process of providing full voting rights to community token holders will be a more gradual process over time to reinforce protocol stability and security.

During this transition, ALK token holders can discuss proposals and engage in community voting. In tandem, an Administrator account is in place to ensure a safe transition, with various functions like pausing the protocol in case of a problem.

The Administrator account is controlled by the Alkemi Network DAO Council, consisting of 7 key holders (co-signatories), whereby 4 out of the 7 nominated members are external to the Alkemi Network core team.

With progressive decentralization, the privileges of the Administrator account will be gradually replaced by network governance from those who hold ALK tokens and use them to make these changes democratically, like through the use of votes. Over the following weeks, we will provide more clarity on the mechanisms and functionality of the Alkemi Network DAO.

The Alkemi Earn permissionless ‘Open’ pool was launched at TGE

  • The ‘Open’ pool was made available for permissionless DeFi access on Alkemi Earn, supporting ETH and USDC markets on 9th September 2021 to coincide with TGE.
  • The ‘Open’ pool provides the opportunity for users to access DeFi borrowing and lending without KYC/AML approval. Note: This is a separate pool from the ‘Verified’ pool.
  • The ALK token provides governance for both the ‘Open’ and ‘Verified’ pools, please see the next section for more details.

What’s Next for Alkemi Network?

TGE is just the beginning of Alkemi Network’s adoption, utility, and decentralization. In the coming weeks, we will publish an in-depth product and strategy roadmap further outlining tactical steps on our mission of bridging CeFi and DeFi.

The Alkemi Network community can expect updates in the coming weeks that address key challenges in the DeFi ecosystem such as:

  • Improving end-to-end user experience, including faster transactions and lower fees
  • Addressing the high cost of capital problem currently experienced by borrowers
  • Reducing DeFi entry barriers through integrations with exchanges and custodians
  • Additional ALK token utility functionality

Save the Date: Alkemi Network Quarterly Update & AMA

Stay tuned for our first ‘Alkemi Network Quarterly Update & AMA’, bringing together the Alkemi Network core team and community to discuss the roadmap to date and future milestones.

This gathering is currently planned for the 12th of October at 11am EST (3pm UTC) on YouTube Live:

Be sure to keep an eye on the YouTube chat during the Quarterly Update — we will post a Quiz link for listeners offering a chance to win an allocation of ALK tokens!

Follow our Telegram channel for all additional updates.

Kind regards,
Alkemi Network

Alkemi Network

Bridging CeFi to DeFi

Alkemi Network

Alkemi Network is building an on-chain liquidity network with a suite of tools and products that serve as onramps for everyone to participate in decentralized finance.

Blockchain Brian

Written by

I am endlessly curious and eternally optimistic. I have a passion for new ideas, obsessed with all things technology, and am always broadening my perspective.

Alkemi Network

Alkemi Network is building an on-chain liquidity network with a suite of tools and products that serve as onramps for everyone to participate in decentralized finance.