Distribution

Overview

The SNR token distribution is designed to balance immediate network needs with long-term sustainability, ensuring fair allocation across stakeholders while maintaining sufficient reserves for ecosystem growth.

Supply Dynamics

Circulating Supply Factors

The circulating token supply depends on several key factors:

Token Velocity

Token velocity measures how frequently tokens change hands and directly impacts token value:

$$\text{Token Value} = \frac{\text{Economic Activity}}{\text{Circulating Supply} \times \text{Velocity}}$$

Allocation Strategy

Core Allocations

The token distribution prioritizes long-term network health through strategic allocations:

1. Network Operations (25%)

   • Validator rewards and incentives
   • Network security subsidies
   • Infrastructure maintenance

2. Ecosystem Development (20%)

   • Developer grants and bounties
   • Partnership incentives
   • Technical research funding

3. Community Treasury (15%)

   • Governance-controlled reserves
   • Future initiative funding
   • Emergency response allocation

4. Team & Advisors (20%)

   • Core team allocation with 4-year vesting
   • Advisory board compensation
   • Long-term alignment incentives

5. Early Supporters (20%)

   • Seed and private sale participants
   • Strategic partners
   • Initial network validators

Vesting Schedules

Team Vesting

• 1-year cliff period
• 3-year linear vesting thereafter
• Performance-based unlocks for milestones

Investor Vesting

• 6-month cliff for early supporters
• 18-month linear vesting
• Anti-dump provisions included

Ecosystem Vesting

• Quarterly releases based on governance votes
• Milestone-based unlocks for major achievements
• Reserved emergency funds with multi-sig control

Inflation Mechanism

Reward Distribution

The network implements controlled inflation to incentivize participation:

Inflation Schedule

Year 1-2: 8% annual inflation

• Focus on network bootstrapping
• High rewards for early adopters

Year 3-5: 5% annual inflation

• Stabilization period
• Balanced growth incentives

Year 6+: 2% annual inflation

• Long-term sustainability
• Minimal dilution

Economic Safeguards

Anti-Manipulation Measures

1. Vesting Cliffs: Prevent immediate dumps from large holders
2. Staking Lockups: Reduce liquid supply through validator requirements
3. Governance Delays: Time-locked treasury withdrawals
4. Slashing Penalties: Discourage malicious validator behavior

Supply Controls

The network implements several mechanisms to manage token supply:

• Burn Mechanisms: Transaction fees partially burned to reduce supply
• Treasury Management: Governance-controlled minting caps
• Dynamic Rewards: Adjustment based on network participation
• Lock Incentives: Higher rewards for longer staking periods

Distribution Timeline

Launch Phase (Month 0-6)

• Initial circulating supply: 10% of total
• Validator onboarding incentives
• Liquidity bootstrapping

Growth Phase (Month 7-24)

• Gradual vesting releases begin
• Ecosystem grants activated
• Governance participation rewards

Maturity Phase (Year 3+)

• Stabilized inflation rate
• Self-sustaining economics
• Community-driven allocation

Transparency Commitments

All token distributions are:

• Publicly verifiable on-chain
• Subject to regular audits
• Reported in quarterly updates
• Governed by smart contracts