Extending lockups. Supply curve.
We are majorly extending the lockups of foundation-owned wallets and prolonging the distribution schedule!
We moved away from medium! Please go to the official blog for the latest information, new content, and engaging activities:
Community Platform
The amazing community response drives us forward to work more and to work harder. So when we hear “we love the project, but there is only ONE issue we have with it, which is the supply schedule” — we have to act!
Check out the initial transparency report. There you can learn about:
- Post-crowd sale update: LTO burned and USD raised;
- How the lockups of all sale rounds work. This will also help you clear the confusion around market cap and valuation definitions. Check this.
So, transparency is key, right? Messari seems to agree with us:
While going through the changes, keep in mind that:
- The network has no inflation, ever. Staking rewards are fees coming from the network usage, so everyone is incentivized to work together on network adoption. We have announced community opportunities.
- Total supply constantly gets little-by-little burned by the Bridge Troll, so far 5M LTO burned forever. Check here.
Let’s get even more transparent!
So what is being changed? Over a half of what was being available before will now be used as network incentives and partially locked up forever.
- 17.8% is not touched up until 2021, and even then it’s not flooding the market — but is “acquiring” the value of other projects’ market caps;
- 11% is locked forever;
- 11.6% in Social and Network Mining over the course of a few years.
Over ~80M tokens that were originally available in 2019–2020 are now only available after 2021. Over ~55M that were originally available to the team are put into multi-year network incentives. 50M tokens locked forever.
Foundation wallet = locked forever
50M LTO, which is almost 11% of the total supply, is now locked forever. This will never hit the secondary market. The Foundation keeps improving the network and needs to retain a vote for major decisions going forward.
Social and Network Mining over a few years
Marketing & Partners wallet is being re-calibrated into:
- Community Programme: 6.5% of the total supply is used for social mining incentives over a period of a few years. The gradual schedule is a guideline, it can be lower. Besides, the community programme requires participants to hold LTO continuously, it is not any kind of airdrop. It’s not just making the supply go higher, it only goes higher if the holding and engagement are higher (think of a hash rate model). Read more here.
- Strategic Partners: 3.3% of the total supply is used as developer grants and for onboarding integrators, to foster network adoption. These are also not to be sold. They are intended for leasing to influential early adopters that require the opportunity to try out the network before fully committing to it. If you were to make a supply chart, keep in mind a 100,000 LTO rewards would be depleting over a period of a year or so depending on the size of the integrator. So these are also long-term rewards.
- Network Incentives: 1.75% of the total supply is used for network mining incentives for over a period of a few years, to encourage the community to run more nodes. SO just as the community programme, it requires network participation to get some rewards. In addition to that, it can be used as a separate wallet for doing specific marketing/tech tasks as an external developers.
M&A Fund = locked until 2021
The biggest supply, 81M LTO (18%), is reserved for M&A (Mergers and Acquisitions) and remain unused until at least summer 2021. As blockchain fights to find more adoption, some projects with a great team and technology, might not be able to maintain their token value. Projects which synergise with LTO and are undervalued in terms of market cap, may be acquired by merging that network into LTO Network. This is done by swapping those tokens for LTO, after which they will be rendered obsolete (and thus valueless). By doing so, the market cap of that project is added to LTO Network’s market cap. Check our Business Plan for 2019.
Don’t ask “when moon” — ask “how moon”
Network growth does not occur by itself. It’s a collaborative effort. Let’s work together and make adoption happen!
We have chats working on different tasks: tech, bizdev, marketing. We are utilizing the power of distributed work and using token rewards as economic incentives. This implies also holding tokens in order to get rewards, so increasing circulating supply can only with increasing locked-up supply. Therefore, it balances things out.
You can join one of the community teams, just ping us on Telegram.
