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.

Total Supply: 1,000,000,000 SNR

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. Community & Ecosystem (35% - 350M SNR)

   • Airdrop Program: 100M SNR (10%)
   • Testnet Incentives: 50M SNR (5%)
   • Staking Rewards Pool: 100M SNR (10%)
   • Ecosystem Grants: 100M SNR (10%)

2. Team & Advisors (20% - 200M SNR)

   • Team Allocation: 150M SNR (15%)
   • Advisors: 50M SNR (5%)

3. Investors (25% - 250M SNR)

   • Seed Round: 75M SNR (7.5%)
   • Series A: 100M SNR (10%)
   • Strategic Round: 75M SNR (7.5%)

4. Foundation Treasury (15% - 150M SNR)

   • Operations: 75M SNR (7.5%)
   • Reserve Fund: 75M SNR (7.5%)

5. Validator Incentives (5% - 50M SNR)

   • Genesis Validators: 30M SNR (3%)
   • Delegation Program: 20M SNR (2%)

Vesting Schedules

Team Vesting

• Team: 12-month cliff, 48-month linear vest
• Advisors: 6-month cliff, 24-month linear vest
• No transfers until cliff periods expire

Investor Vesting

• Seed Round: 6-month cliff, 36-month linear vest
• Series A: 3-month cliff, 24-month linear vest
• Strategic Round: 25% immediate, remainder over 18 months

Community Vesting

• Airdrop: 25% immediate, 75% over 12 months
• Testnet: Distribution over 6-month testnet period
• Ecosystem Grants: Project milestone-based releases

Foundation Vesting

• Operations: 10% at genesis, 90% over 5 years
• Reserve Fund: Minimum 3 years lockup, governance approval required

Inflation Mechanism

Reward Distribution

The network implements controlled inflation to incentivize participation:

Inflation Schedule

Year 1: 15% inflation (aggressive growth)

• Focus on network bootstrapping
• High rewards for early adopters

Year 2: 12% inflation (continued expansion)

• Stabilization period begins
• Balanced growth incentives

Year 3: 9% inflation (stabilization)

• Network maturation
• Sustainable reward levels

Year 4+: 7% inflation (long-term sustainability)

• Minimal dilution
• Self-sustaining economics

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:

• Fee Burning: 50% of transaction fees burned (deflationary)
• Treasury Management: Governance-controlled minting caps
• Dynamic Rewards: Adjustment based on network participation
• Lock Incentives: Higher rewards for longer staking periods

Centralization Risks

• No single entity controls >20% at genesis
• Team tokens have longest vesting (4 years)
• Foundation treasury requires governance approval
• Validator set caps prevent concentration

Market Stability

• Staggered vesting prevents supply shocks
• Fee burning provides deflationary pressure
• Utility demand from identity services
• Cross-chain value capture mechanisms

Token Utility & Value Accrual

Primary Utilities

Value Accrual Mechanisms

1. Fee Burning: 50% of transaction fees burned (deflationary)
2. Staking Yield: 7-15% APR depending on network participation
3. Identity Revenue: Enterprise licensing fees distributed to stakers
4. Cross-chain Value: IBC transfer fees and bridge operations

Staking Targets

• Target staking ratio: 65%
• Validator set: 50-100 active validators
• Minimum stake: 1M SNR (0.1% of supply)
• Delegation minimum: 1 SNR (accessible to all)

Vesting Schedule Overview

Distribution Timeline

Pre-Launch (Months -6 to 0)

• Team allocation locked
• Investor funds raised
• Testnet incentives distributed
• Airdrop snapshot taken

Genesis (Month 0)

• 200M SNR circulating supply
• Genesis validators receive allocation
• Foundation treasury initialized
• Staking rewards begin

Year 1 (Months 1-12)

• Airdrop vesting releases 75M SNR
• Team cliff expires, vesting begins
• Series A completes vesting
• Ecosystem grants distributed

Year 2-3 (Months 13-36)

• Seed round completes vesting
• Team reaches 62.5% vested
• Foundation operations fully unlocked
• Validator program matured

Economic Incentives

Genesis Validator Program

• Genesis Validators: 30M SNR (3%)
• 50 validators × 600,000 SNR each
• 24 months minimum staking lockup
• 99%+ uptime and governance participation required

Delegation Program

• Foundation Delegations: 20M SNR (2%)
• 6-month renewable terms
• Performance-based allocation
• Support for high-performing validators

Maturity Phase (Year 3+)

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

Success Metrics

Year 1 Targets

• 50% of supply staked
• 50+ active validators
• 100k+ active addresses
• $10M+ in identity service revenue

Year 3 Targets

• 65% of supply staked
• 75+ active validators
• 1M+ active addresses
• $100M+ total value locked

Long-term Vision (5+ years)

• Self-sustaining network economics
• Deflationary token model
• Industry-standard identity infrastructure
• Billion-dollar ecosystem value

Transparency Commitments

All token distributions are:

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