Shyft Network — Token Distribution and Economics Update
More than a year has passed since the launch of SHFT, a time of excitement, challenges, achievements, and hard work. Our community and partners have been highly supportive of our mission to power trust on the blockchain through data discoverability and compliance while preserving privacy and sovereignty. The economics behind our Shyft Network token SHFT reflects this mission and our vision for the ecosystem's future.
The Hard Facts (Jan 26, 2023 )
- Initial SHFT supply: 2,500,000
- Currently at block 8,884,061
- Current SHFT circulation: 595473894.1127162 (Tokens that have been unlocked and claimed.)
- Current SHFT unlocked: 951,904,687 on Jan 26, 2023 (As, for example, yield wrap and AMM solutions have not been launched yet — unlocked tokens are accumulated and are not distributed. Thus, even as they are unlocked — they have not been touched and have not reached the market/users but may be introduced upon the launch of yield wrap programs. Also, it includes unlocked SHYFT treasury tokens)
- Maximum SHFT supply: 2,520,000,000
- Projections: month 33 (Dec 2023), SHFT circulation 1,745,981,345 (conditioned to inflation rate remaining constant at 6% p.a.)
- Node Inflation rate: set at 6% of the initial universe, released on a per-block basis, perpetually
The initial supply for SHFT at the time of launch was 2,500,000. At the time of writing (Jan 26, 2023), the circulating supply of SHFT tokens was 595473894.1127162. The current circulating supply only accounts for the number of tokens released (per the token release scheduled) and claimed.
It is important to note that if SHFT tokens are unlocked but remain unclaimed, they won't be included in the circulating supply.
A proposal to change the way the circulating supply is calculated is being debated in Shyft DAO. If the community approves the proposal, the SHFT circulating supply will include all tokens released per the schedule, regardless of whether the tokens are claimed.
SHFT Token: The Fuel That Powers Shyft Ecosystem
Made publicly available on Polkastarter on Mar 26, 2021, Shyft Network's native token, SHFT, is available on two blockchains:
- As the native layer 1 token for the Shyft Network blockchain, and
- As an ERC-20 token on the Ethereum blockchain. The ERC20 token is a wrapped version of the native SHFT token.
Virtual Asset Service Providers (VASPs) use the native layer 1 SHFT token to pay for the gas fees required to post attestations on Veriscope, the only frictionless Travel Rule Solution in the market, and comply with the FATF Travel Rule. Click here to find out more about attestations. Additionally, it is expected that users will be able to use SHFT tokens to pay for some fees for the DeFi solutions launching soon on the Shyft Network.
SHFT tokens can also be used for governance. Token holders can exercise their right to vote on Shyft DAO proposals.
The SHFT token supply was divided into multiple allocations prior to distribution. Each allocation was attributed to a specific set of activities designed to benefit the Shyft community and network. The distribution ratio was also entered into the token distribution contract to ensure transparent and automated distribution. The distribution is organized as follows:
5.8% of the maximum supply of SHFT token supply, which is 146,093,916 SHFT, is reserved for Next-Gen DeFi projects that are expected to be built atop the native Shyft Network. The distribution of Next-Gen DeFi funds will begin in the 39th month from the date of the public launch of the SHFT token (Mar 26, 2021) and will continue over the next 12 months.
Each month, between months 39 and 50, 12,174,493 SHFT tokens will be unlocked for Next-Gen DeFi and added to the circulating supply. At the time of the publication (Jan 26, 2023), which is month 22, no Next-Gen DeFi reserved SHFT tokens have been unlocked.
The Wrap Yield fund is expected to reward users holding Shyft Network-wrapped ERC-20 assets to incentivize user participation. A total of 117,282,495 SHFT tokens have been allocated to Wrap Yield, which is 4.65% of the token supply.
Each month, between months 1 and 120, 977,354.13 SHFT tokens will be unlocked for the Wrap Yield and may be added to the circulating supply as per the product launch timeline after the unlocks. Currently (month 22, Jan 26, 2023), the number of unlocked Wrap Yield reserved SHFT tokens is 21,501,790.75 SHFT.
The AMM Yield fund incentivizes liquidity providers in SHFT liquidity pools. A total of 150,000,000 SHFT tokens have been allocated to AMM Yield, which is 5.95% of the token supply.
Each month, between months 1 and 180, 833,333.33 SHFT tokens will be unlocked for the AMM Yield and may be added to the circulating supply as per the product launch timeline after the unlocks. Currently (month 22, Jan 26, 2023), the number of unlocked AMM Yield reserved SHFT tokens is 18,333,333.33.
VASP Ecosystem Initializer
The VASP Ecosystem Initializer is reserved for promoting Shyft's Travel Rule-related products by incentivizing Virtual Asset Service Providers (VASPs). A total of 875,000 SHFT tokens have been allocated, which is 0.03% of the token supply.
These tokens were unlocked according to the following schedule:
- 125,000 were unlocked in the second month that followed the launch
- 125,000 were unlocked in the third month.
- The remaining 625,000 were unlocked in the fourth month, totaling 875,000 tokens.
All VASP Ecosystem Initializer reserved tokens have been unlocked.
Shyft Treasury holds 166,260,215 SHFT tokens, representing 6.60% of the token supply. It consists of the unallocated SHFT tokens reserved for Shyft's partners, advisors, etc. The treasury will continue to hold onto these assets until it allocates them per their pre-decided purpose. So far, this allocation has not been unlocked.
With economic metagame, if a user wraps a token from one ecosystem (e.g., ERC20) to another (e.g., Shyft Network), a similar amount of SHFT tokens would automatically be burned from the economic metagame allocation. This automated action is designed to reward users for wrapping their tokens.
504,000,000 SHFT tokens, which is 20% of the token supply, have been set aside for the economic metagame. Depending on how many tokens users wrap to different ecosystems, these tokens would be burned over the next two years from the SHFT token public launch date.
To date, this allocation remains untouched. However, to preserve the allocation's original use, all 504,000,000 tokens will continue to be allocated to the economic metagame until the allocation is exhausted.
450,000,000 SHFT tokens (17.86%) have been reserved for the Shyft core team. The distribution begins from the 24th month and will continue over 12 months with a monthly tranche of 37,500,000 tokens.
No Core Team reserved SHFT tokens have been unlocked by the date of this publication (Jan 26, 2023).
Our advisors have been valuable partners in Shyft Network's development. To reward them for their unparalleled support, we have reserved 110,251,147 tokens, which is 4.38% of the maximum supply of Shyft Network's tokens.
The distribution began on the 13th month from the public launch date (Mar 26, 2021), with 6,125,063.72 SHFT tokens unlocked & released to advisors, followed by a 6-month pause. It resumed again on the month 20th (Nov. 2022) and is expected to continue release, in equal monthly installments of 6,125,063.72 SHFT tokens released until month 36th.
At the current time, the number of unlocked tokens allocated to Advisors is 24,500,254.89 SHFT.
While building the network's critical infrastructure, Shyft has inked many strategic partnerships with development teams and advisory entities. The goal is to expand the use cases of the Shyft Network and, respectively, the SHFT utility.
Shyft Network has reserved 127,334,060 SHFT tokens for strategic partnerships, which is 5.05% of the maximum supply of SHFT tokens. The distribution of tokens from the strategic partnership reserve will occur in two distribution cycles.
A total of 18,083,515 SHFT tokens were released in the first distribution cycle, which was only one month long, followed by a six-month pause. The second distribution cycle began in April 2022, the 13th month from the public launch date, and will end in February 2024. The amount of tokens released every month during the second distribution cycle varies.
Between March 2022 and February 2023, 3,389,739.94 SHFT tokens will be released monthly. Then, 7,973,071.27 SHFT tokens will be released in March 2023, the 24th month from the public launch date.
Between April 2023 and August 2023, 7,298,071.27 tokens will be released monthly. Next, from September 2023 to February 2023, 4,583,333.3 SHFT tokens will be released monthly. By then, the Partnerships reserve will be completely exhausted.
Currently, the volume of unlocked SHFT tokens from the Partnership reserve is 51,980,894.40.
Strategic purchasers fulfill the mandatory bonding requirements to enable the Shyft Network's interoperability bridge layer to function. It can be network participants, industry partners, and more.
134,215,584 SHFT tokens have been reserved for strategic purchasers, which is 5.33% of the maximum supply of SHFT tokens. The SHFT tokens from the Strategic Purchasers reserve will be unlocked in four cycles of varying lengths, starting in April 2021 with the release of 333,333 SHFT tokens.
In the second token distribution cycle (July 2021 to August 2022), a total of 91,239,394.06 SHFT tokens were unlocked, whereas in the third one (December 2022), 250,000 SHFT tokens were unlocked. The fourth distribution cycle will begin in January 2024 and end in September 2024, and 42,392,857 SHFT tokens will be unlocked during this period, exhausting the Strategic Purchasers' reserve in the process.
The Strategic Purchasers reserve SHFT tokens unlocked as of this date are 91,822,727.06.
2,500,000 tokens which is 0.10% of the maximum supply of SHFT tokens, were distributed through Shyft Network Initial DEX Offering (IDO) on Polkastarter, which took part on Mar 26, 2021.
507,987,583 SHFT tokens, or 20.16% of the total supply of SHFT tokens, have been reserved for purchasers. They bought SHFT tokens before the launch date, which was Mar 26, 2021. The allocation began in March 2022 and will continue until June 2023.
To date, 380,990,686.64 SHFT tokens have been distributed to purchasers.
Token Reserve (People)
103,200,000 SHFT tokens, or 4.10% of the entire supply of SHFT tokens, have been reserved for Token Reserve, which is meant to facilitate liquidity across the Shyft ecosystem. The Token Reserve was fully exhausted after four months of the public launch.
Similar to real-world currencies, Shyft Network's native token, SHFT, too, is influenced by inflation. The rate at which the SHFT tokens will be released yearly has been fixed at 6% per annum.
SHFT tokens are subjected to three types of inflation: Staking — Adjusted Inflation, DAO — Adjusted Inflation, and Nodes — Adjusted Inflation. Each of these inflation sub-types contributes 2%, bringing the total inflation rate to 6% p.a.
To address the block-wise inflation, 11,767,813 SHFT tokens are added per month to the circulating supply, which is less than the expected amount of 12,600,000 SHFT tokens if we go by the 6% annual inflation rate.
You can find our Shyft Network block explorer here: Shyft POA Explorer For updated information on Shyft Network's token supply, please check out Shyft Network, SHFT live marketcap, chart, and info | CoinMarketCap.
Shyft Network powers trust on the blockchain and economies of trust. It is a public protocol designed to drive data discoverability and compliance into blockchain while preserving privacy and sovereignty. SHFT is its native token and fuel of the network.
Shyft Network facilitates the transfer of verifiable data between centralized and decentralized ecosystems. It sets the highest crypto compliance standard and provides the only frictionless Crypto Travel Rule compliance solution on the blockchain while ensuring user data is protected.
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