Updates to the Tokenomics and Release Schedule of UTU Coin
We are changing the release schedule of our Team tokens and clarifying the overall UTU Coin release schedule and allocations.
Hello UTU Trust Guardians!
One of the questions we frequently receive from the community is, “What is the release schedule of UTU Coin?” We understand that this is a very important piece of information for potential and current investors, so we would like to clarify and announce a change to the schedule.
Here is a table that breaks down how the 1,000,000,000 total supply of UTU Coin is allocated:
There are a few clarifications and changes we would like to highlight.
Friends and Family Tokens
While all Presale, Private Sale, Crowdsale, and Uniswap listing tokens have been released to circulation, there are some tokens from the Friends and Family round that have not been released yet.
Out of the 2,000,000 tokens allocated to the FnF Round, 561,463 have been released. The remainder will be released in the following fashion:
- 575,415 (40% of the remainder) in May 2021
- 431,561 (30%) in September 2021
- 431,561 (30%) in January 2022
Team and Advisor Tokens
We have changed the release schedule for the 300,000,000 Team and Advisor tokens.
The original release schedule stated that these tokens would be locked until 12 months after protocol launch, and released monthly thereafter for 24 months.
The key question here is: what does “protocol launch” mean?
Legally, “protocol launch” is defined by the token generation event that occurred in October 2020. So under the original release schedule, the 300,000,000 token allocation would start being released into circulating supply in October 2021.
We can’t change what was agreed upon with our advisors, so their allocation of 100,000,000 tokens will start to be released in October 2021, as originally planned. Around 4,166,667 million tokens will be released each month from October 2021 until September 2023.
But we will delay the team token release until 12 months after the launch of the UTU Trust Token / endorsement contract launch, which is estimated to be around June 2021. Thus, the 200,000,000 team tokens will start to be released around June 2022, 9 months after the original release date of October 2021.
On average, 8,333,333 tokens will be release each month from June 2022 until May 2024. But each employee has vesting schedules that will further delay the release of their token allocations.
This delay in team token emission shows our long-term dedication to the UTU ecosystem and community. Increasing trust across the entire internet won’t happen overnight, and we’re in it for the long haul.
Growth Round Tokens
308,545,455 tokens (30.85% of total supply) are allocated to what is called the “Growth Round”.
We’d like to clarify and add more detail to what this entails.
Basically, these are the tokens that are budgeted to grow the UTU ecosystem, and we’ve broken his big number down into three main categories:
- Marketing and Community — This includes funds for anything that helps promote UTU and grow the community, including giveaways, AMAs, liquidity for centralized and decentralized exchange listings, and more. These funds will be released as needed.
- Governance Operations — This includes funds for managing the decentralization of the UTU Protocol, which may include grants for developers, management of the governance process, and more. These funds will be released as needed.
- Reserved for future products and fundraising — We may need to dedicate budget and raise additional funds to develop new products and services, and this allocation serves those purposes.
At this time, we’re not able to break down how many tokens are allocated to each of these categories or when they will be released. We will be prudent in the use of these funds and will only use them as necessary to grow the size and value of the UTU ecosystem.
Ecosystem Growth Tokens
The final line item that needs clarification is the “Ecosystem Growth” allocation of 300,000,000 tokens.
These tokens are core to how the UTU Protocol functions and will be used to fund the UTU Trust Token (UTT) to UTU Coin conversion, as well as other user-focused ecosystem services.
UTU users, whether they are companies who integrate our Trust API or individuals like you, can send or receive UTT when they perform actions within the UTU ecosystem. These actions include but are not limited to:
- Creating accurate ratings and reviews.
- Sharing data with the protocol.
- Incentivizing trustworthy behavior.
- Many other activities.
UTT has no monetary value, so trust can only be earned, and not bought. But after UTTs are earned, they can then be converted into UTU Coin to spend, trade, or HODL.
The 300,000,000 UTU Coins of the Ecosystem Growth allocation will be used to facilitate these UTT -> UTU conversions, and the rate of release will depend on users’ conversion behavior.
Graph of Release Schedule
The above information can be visualized in this graph that represents the token release schedule over the next 48 months:
The FNF, Presales and Private Sales, Team, and Advisor token release schedules are all accounted for in the graph.
The Growth Round and Ecosystem Growth budgets are not included in this graph because we cannot accurately predict when these funds will be released. And a portion of these allocations will certainly be released on a timeframe much longer than the next three years.
Conclusion
We hope that this blog post clarifies how UTU Coin will be released into circulation and better informs your investment.
Please let us know if you have any questions, and thank you for your support!
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