Token Distribution
VELOCITY adopts a limited supply model.
Maximum supply
Smax=100,000,000 $VELOCITY
Genesis issuance
S0=60,000,000 $VELOCITY tokes
Allocation
Investors / Sale
40%
Yes
40,000,000
Emissions (rewards)
20%
No
20,000,000
Founders & Team
20%
No
20,000,000
Velocity Career Labs (VCL)
10%
Yes
10,000,000
Foundation
10%
Yes
10,000,000
100%
100,000,000
Supply properties:
emissions are hard-capped at 20%
10-15% liquidity will be provided by VCL and Foundation.
no discretionary inflation is possible
dilution risk is explicit and bounded
Investors / Token Sale
Backers and Supporters providing funding that enables next stage of network growth.
Tokens allocated to investors will be fully liquid upon launch.
Emissions (Reward)
The protocol uses Velocity Tokens to incentivize oracle node operators.
The Velocity Token SPV will govern the emissions treasury in line with its Articles of Association and with a mandate to gradually decentralize governance of token management decision making. The SPV will execute the allocation of sufficient tokens to a smart contract supporting the network’s incentive framework.
Founders and Team
Tokens allocated to the team that designed the protocol, personally funding the development of the initial tech stack, made initial steps to bring together the first group of participating organizations to launch the project and led the network's multiyear pre-launch PoCs and the launch of Mainnet.
VCL
The space of verifiable credentials in which this project operates is rapidly developing and the project’s roadmap will need to react quickly to such developments.
Developing and launching the network responsibly, in a manner that best serves the users and aligns with the project's mission, has proven to be more complex and costly than VCL initially anticipated. To address future needs post-launch, VCL will retain a reserve of 10 billion tokens. These tokens will be used to engage investors and fund future R&D and deployment efforts as well as be used to drive payments products on the network. If the reserve remains unused 60 months after token launch, VCL may decide to return the tokens to the Ecosystem treasury.
Foundation
In addition to network incentives and until decentralization and self-sufficiency, the Velocity Token SPV will support the Velocity Network ecosystem. As part of its role, the SPV will allocate the Velocity Community tokens primarily towards these purposes:
(1) Grants to developers and independent software vendors continuously improving the protocol and underlying tech. These funds will be used for continued research and development regarding the different parts of the Velocity Network protocol, including different wallet apps, the agents, and the on-chain protocol. These will also include bug bounty programs.
(2) Network operations, mainly operating the trust framework, KYB and Issuers accreditation processes. Furthermore, some funds are expected to be used for security and compliance audits as well as for certifying new service providers.
(3) Ecosystem funds, to drive global awareness and adoption of the protocol, through user engagement initiatives and community outreach, as well as incentive programs that directly incentivize activities by persons, companies, and associations to contribute to the growth of the ecosystem.
(4) Some funds are expected to be used by the Velocity Network Foundation to foster standardization of the different parts of the Velocity Network protocol, including different wallet apps, the agents, and the on-chain protocol. Standards help decentralization by making it easier for different parties to become part of the Velocity Network ecosystem.
(5) Some funds will be used for liquidity provisioning engaging market maker entities to ensure sufficient liquidity for velocity tokens traded on exchanges, to facilitate price discovery, and to enhance price stability.
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