Token Distribution
The Pilgrim Token ($PIL) is a utility token to align incentives for users of the Pilgrim Protocol. This document describes how PIL will be released upon launch and after 4 years.
TL;DR
Tokens will be issued 100% at genesis. This is to construct a deflationary tokenomics model, as described with the Tokenomics Overview section.
However, tokens for investors and builders will have a cliff and vesting period.
Token distribution and issuance must be executed by a governance proposal through the Pilgrim DAO on demand.
Therefore, potential stake of the community will be much higher compared to what this document describes.
Pilgrim Protocol is expected to dilute 40% of tokens over 4 years. Pilgrim's smart contracts control the release of tokens by halving the reward parameter every year. However, since this is based on rough estimates, Pilgrim may emit more or less protocol incentive tokens.
Token Release
Genesis Token Release
Year 1 Token Release
4+ years Token Release
Vested token releases for investors and builders will be done by this time.
Token Release Schedule Chart
Investors
During the previous friends and family round, Test In Prod Operations Limited have dilluted 2.63% of total PIL token supply. Up to 4.5% of tokens will be diluted by launch. Investors have 2 years vesting with a 1-year lockup.
Builders
Builders have 2 years vesting with a 1-year lockup.
Strategic Reserve
The strategic reserve is intended to aligh long-term key strategic initiatives that is deemed helpful for Pilgrim Protocol, and must be deployed quickly based on market condtions if deemed necessary.
The strategic reserve is not intended for market sale.
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