Keeping in line with our mission for transparency, we want to share with you more details about vested OMI tokens. As you are aware, the founders token allocation is due to unlock quarterly beginning in May 2021. These tokens were voluntarily vested in accordance with our company whitepaper.
Why Did We Lock Away Tokens?
During the mania of the 2017 bull market, a lot of scams arose that would raise money, then dump their tokens and exit. It became commonplace for founders to voluntarily lock away their token allocations as evidence that they meant business. The ECOMI founders took this approach, with their token allocations having already been unavailable for two years, and the total amount not entering circulation for another 12 months.
As you can see in the infographic below, OMI Circulating Supply, the black indicates OMI tokens that came available through the initial token sales and IEO (around 110 bn OMI). In blue we can see the founders token unlocks, beginning May 9th 2021. A total of 75 bn tokens will be unlocked by the end of the 12 month vesting period or 18.75 bn tokens per quarter.
As the chart indicates, the circulating supply is expected to deflate over time, with a cap of approximately 300 billion OMI tokens to enter circulation. This is shown in more detail below.
Our second graph, OMI Non-Circulating Supply and Burns, aims to make the total token supply clearer. Thanks to the tokenomic design of the VeVe app, a large majority of the total token supply will never enter circulation.
Breaking it down:
- 750 billion OMI tokens were minted in May 2019.
- We started with 300 billion tokens in the in-app Reserve Wallet and ~41 bn in the Vault wallet. These tokens effectively never enter circulation and are indicated by the black in the image below.
- A further ~97 billion tokens were permanently removed from circulation, as announced in Q1 2021. This is indicated by the first red block.
- This, in combination with token burns from the VeVe app, has seen more than 100 billion OMI tokens permanently removed from the total supply.
- Our tokenomic system is deflationary by nature, and thanks to an innovative buy-back mechanism the total tokens in circulation will continue to be reduced. You can track the ongoing token burns using our token tracking website.
- You can also view the Out of Circulation Wallet here.
In line with the deflation of the circulating supply, the total token supply is also expected to continue to reduce, predicated on the sale of digital collectibles on the VeVe platform. The number of tokens burnt is dictated by the live/spot price of OMI at the time of each collectible sale.
What Is the OMI Token For?
The OMI token’s core utility is to purchase digital collectibles on the VeVe app. There are additional utilities coming in 2023 that will also serve to improve the velocity and utility of the token.
The commitment of the ECOMI team has not wavered, and we are only a few months into a multi-year journey to change the face of the collectibles industry. As part of this commitment, the team will continue to build new utilities and value propositions for the token itself, expand its reach into gaming and metaverse, as well as implement more options for token holders when it comes to liquidity and accessibility.
We look forward to sharing some of these developments with you as the year progresses.
Information on this channel is subjective and should not be considered financial advice and is subject to change. See disclaimer
About ECOMI
ECOMI is a technology company based in Singapore and is leading the way in the emerging digital collectibles space. ECOMI offers a one-stop shop for digital collectibles through the VeVe app bringing pop culture and entertainment into the 21st century.
The VeVe app allows users to experience true ownership of premium digital collectibles. Through the app marketplace, users can obtain common, rare, or one-of-a-kind digital collectibles, share these across the social network service, and exchange them with the VeVe community, all from the palm of their hand.
ECOMI sees digital collectibles as a new asset class that offers intellectual property owners the opportunity for new revenue streams in the digital landscape. Digital streaming, gaming, and in-app purchasing have become a multibillion-dollar market and the next to join this digital trend is the pop culture and collectibles industry.
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