Reapchain (REAP) — Governance Voting Notice on Quantity Adjustment and Distribution Plan Change of Reapchain Foundation’s Holdings
Hello, this is Reapchain. We would like to provide accurate information on the current distribution status of REAP and discuss the foundation’s future plans to enhance the value of REAP.
Summary of Current Situation Based on Reapchain’s Token Distribution Plan:
In June 2020, Reapchain initially issued a total of 4.9 billion REAP tokens. In the fourth quarter of 2021, 2.7 billion REAP tokens were burned to increase the token value per REAP and reduce inflation, promoting stable value growth.
As of now, all unlocked tokens, excluding quantities allocated for Ecosystem Incentives, Company Reserve, and Standing Committee Node (SCN), are set to be distributed to the market. The maximum circulating supply is 987 million, with the exception of marketing tokens (36.75 million) scheduled for release in the fourth quarter of 2023, which are yet to be distributed.
Approximately 900 million REAP tokens are currently circulating in the market, and the foundation’s holdings, including Ecosystem Incentives, Company Reserve, and SCN, exceed 1.2 billion. In terms of percentage, the foundation’s holdings represent about 55% of the total issuance.
Concerns from Crypto VCs and Node Partners:
Criticism from crypto VCs and node partners centers around the foundation holding more than half of the total issuance, potentially leading to over 50% control in network voting. Continuous feedback emphasizes the need to reduce this majority ownership for decentralization.
Foundation’s Decision — Token Distribution Policy Adjustment for Decentralization:
In pursuit of decentralization, Reapchain aims to adjust the current foundation holdings and distribute the remaining quantities to the market. The final implementation of this decision will be subject to an official vote. The details of the vote are as follows:
Voting Date and Method: To be announced in mid-December.
Targeted Quantities for Adjustment: Ecosystem Incentives, Company Reserve, Standing Committee Node.
Adjustment Scope:
Adjust the Standing Committee Node holding from the current 2% of total issuance to 1%.
The adjusted 1% of Standing Committee Node tokens will be attributed to the foundation, serving the node ecosystem’s security and operational expenses. These tokens will immediately enter the circulating supply upon vote approval.
Include 50% of the Company Reserve quantity (1 billion out of 2 billion) in the circulating supply for research and development expenses. Similar to the Standing Committee Node, these tokens will enter circulation immediately upon vote approval.
Comparison of Adjusted Quantities if Foundation Holdings Vote Passes:
Foundation Holding Category Before Adjustment After Adjustment
Company Reserve 2 billion 1 billion
Ecosystem Incentives 3.97 billion 3.97 billion
Standing Committee Node 6.16 billion 3.8 billion
The vote on Reapchain Foundation’s decision is scheduled to take place at the end of December, supported by the bridge. Details regarding the voting date, procedures, and methods will be provided in mid-December.
Thank you.
