DigitalBits Tokenomics Breakdown
Over 87% of unsold tokens locked up for multi-year release
DigitalBits, a fork of Stellar, aims to provide transparency and a heightened level of governance over unused tokens, future allocations, and breakdowns for each category. This article aims to provide a complete picture of each token category, along with details for past and future use. Moreover, the quarterly modular reports will include updated token allocations for each category.
Overview
Current Circulating Supply: 185,055,555 XDB
Total Supply: 100 billion XDB
4% — initial token sale — (previously 10%)
Previously 10% was reserved for initial sale. This number has now been adjusted to 4%, and the difference is now subject to a multi-year lock-up and reserved for future use (see the section below regarding the 28% restricted supply). Updates regarding the usage of these tokens will be disclosed via our Modular Report.
In August 2019, a strategic private sale was completed at a higher price to prior private sales. As part of the terms and conditions of this sale, an ERC20 token was provided to these buyers to confirm purchase. Learn more about these terms and conditions here. Prior tokens sold will be unlocked with a multi-period release schedule commencing at the beginning of 2020. Total contributed capital to date is approximately $2.5 million. Learn more about some of our funders here.
No MainNet tokens have been released at this time to token buyers. The release of MainNet tokens will be announced in the future. At that time, the holders of XDB ERC20 tokens will be instructed to present their ERC20 tokens for MainNet tokens. .
IDEX, Bilaxy and Vinex have currently listed XDB and certain other cryptocurrency exchanges are expected to follow.
28% — Restricted — multi-year (2022–2027)
Previously, 22% was reserved and locked up for 2 years. This has now been changed to a multi-year schedule commencing in 2022 for 5 years as described in this section. In addition, 6% of unsold tokens have now been added to this restricted supply lockup, resulting in a total of 28% now reserved for future use, with the restricted supply to be unlocked as follows: 2% in both 2022 and 2023, 5% in both 2024 and 2025, and 7% in both 2026 and 2027.
5% — partnership development program, including node operator program
Tokens will be used to support client on-boarding, integration with the DigitalBits protocol and other strategic initiatives. These endeavours look to organically introduce XDB to existing programs and their respective user bases, as well as support new programs that have selected DigitalBits to build upon.
19,203,065 tokens from the partnership development program have been unlocked and are a part of the current circulating supply.
DigitalBits also plans to launch a Node Operator Program that would reward qualified individuals/entities operating instances of DigitalBits Core. This initiative looks to diversify node operators, pursuing a decentralized, sustainable and secure network. Launch of this program is expected in 2020.
5% — R&D grant program
Tokens will be used to support research and development activities, encouraging prospective partners to develop and operate products, services, or solutions that are important to the DigitalBits network. To date, R&D activities have been funded using a portion of capital raised, therefore, no tokens from this reserve are unlocked and are not a part of the current circulating supply.
3% — airdrops and bounties
Airdrops and bounty programs are focused on growing awareness for the DigitalBits network, allowing qualified community members to be rewarded for fulfilling certain requirements. No more than 0.25% can be unlocked in any one year, however, to date the use of this token reserve has been conservative.
15% — team, contractors, and advisors
Includes 12.5% reserved for team and contractors, and 2.5% for advisors. Amounts allocated for team members as performance incentives are provided on a 4-year vesting schedule.
40% — Algorithmic Pool/Charity Pool: 39.6% Algo Pool, 0.4% Charity Pool
All tokens from this pool are currently locked and launch is not expected to commence until 2022. It is currently forecasted that this pool could result in rewards being earned, in accordance to the algorithms that govern it, non-linearly over a 10+ year period.
Algorithmic dissemination is a novel method to the distribution of reserve tokens. DigitalBits was forked from the Stellar network. Stellar utilizes an inflationary method to distribute reserve tokens. As for the DigitalBits network, there is no inflation of the total supply of digitalbits (XDB) token. According to the Stellar protocol, XLM is distributed on a weekly basis — adding XLM to the network at a rate of 1% annually. Under this approach, regardless of the state of the Stellar network, the circulating supply will continue to increase.
Conversely, DigitalBits algorithmic pool will use mathematical algorithms to distribute reserve tokens. By rewarding users for certain aggregate network and individual account usage, DigitalBits encourages the use of its blockchain and the XDB token. In this way, all network participants are eligible to receive rewards. Additionally, any tokens from the algorithmic pool that eventually get added to the circulating supply will be proportional to the activity on the DigitalBits network — and will only increase as network activity increases. With the supply of XDB growing in relation to the network’s usage, XDB protects its token from the effects of inflation and ensures that the amount of tokens in circulation is suitable for the state of the network.
Algorithmic dissemination is one of the main amendments that defines DigitalBits from Stellar to support governance and network activity.
Disclaimer:
This document is for information purposes only and has been created to provide a general overview of the DigitalBits network and the XDB token. For further details, please reference the DigitalBits whitepaper.
Fusechain XDB I Ltd. and its affiliates do not guarantee the accuracy of or the conclusions reached in this document, other summary documentation, or the whitepaper (“Documents”). These Documents are provided as is. Fusechain and its affiliates do not make and expressly disclaims all representations and warranties, express, implied, statutory or otherwise, whatsoever, including, but not limited to: (i) warranties of merchantability, fitness for a particular purpose, suitability, usage, title or non-infringement; (ii) that the contents of these Documents re free from error; and (iii) that such contents will not infringe third-party rights. Fusechain XDB I Ltd. and its affiliates shall have no liability for damages of any kinds arising out of the use, reference to, or reliance on these Documents or any of the content contained herein, even if advised of the possibility of such damages. In no event will Fusechain XDB I Ltd. or its affiliates be liable to any person or entity for any damages, losses, liabilities, costs or expenses of any kind, whether direct or indirect, consequential, compensatory, incidental, actual, exemplary, punitive or special for the use of, reference to, or reliance on these Documents or any of the content contained herein, including, without limitation, any loss of business, revenues, profits, data, use, goodwill or other intangible losses.
