Token Allocation

The Airdrop and Staking Rewards

5% of the supply is reserved for the initial airdrop & staking rewards for veVLV holders to bootstrap initial decentralization and incentivize stakeholders to lock their tokens. By the time the first rewards are distributed the Velvet DAO will be sufficiently decentralized to make further decisions regarding staking rewards and allocate an additional amount from the ecosystem fund or treasury if necessary.

The Growth Fund

5% of the supply is reserved to incentivize contributions towards ecosystem growth. One of the main initiatives is the Referral program which will heavily reward people for bringing new users to the platform.

The Ecosystem Fund

25% of the supply is reserved for an ecosystem fund, which will be used to support and incentivize developers, partners, and projects that contribute to the Velvet DAO ecosystem. This fund will be managed by the DAO community through a transparent and democratic process, with the allocation of funds requiring a vote from the community.

The DAO Treasury

20% of the supply is reserved for the DAO Treasury, which will be managed by the community through a decentralized autonomous organization (DAO). The tokens in the treasury will be used to fund any operating expenses of the DAO, including future development, security audits, internal growth initiatives, legal support and more.

The Liquidity Pool

5% of the supply is reserved for the initial liquidity pool, which will be used to provide liquidity for the Velvet DAO token on decentralized exchanges. This will ensure that there is enough liquidity for users to easily trade the token.

The Core Team

20% of the supply is reserved for the team to engage them in the long term success of Velvet DAO.

The tokens are allocated to the team with a monthly vesting over 6 years, so the whole team only receives ~0.28% of the supply each month.

The Initial Backers

20% of the supply is reserved to be distributed to the earliest backers (with a part of it already allocated to Binance Labs, Selini Capital, Cointelegraph Ventures, Blockchain Founders Fund, Ceras Ventures, PAKA funds, 300DAO, Mucker Capital, FunFair Ventures and other initial partners) to bring top-tier partners supporting the launch and scaling of Velvet DAO.

The tokens are allocated to the initial backers with a monthly vesting over 5 years, so the backers only receive ~0.33% of the supply each month.