Sep 11, 2020 · 6 min read · cat
The launch of Linear Finance will enable people to quickly, cheaply, safely and seamlessly trade synthetic assets. This post will explain our LINA token metrics ahead of our launch, token generation event (‘TGE’), and the token arrangements upon listing.
This assumes general knowledge of Linear Finance; if you would like to read our whitepaper it can be found here. (Alternatively, this is an introductory Medium post for Linear Finance; or have a look at our Twitter and Telegram accounts.) Section One is a brief overview of our token metrics at a glance, Section Two will then each token allocation category in greater detail.
Token Ticker: $LINA
Total Initial Supply at TGE: 10,000,000,000
Initial Liquid Tokens: 257,666,666
There will be 10,000,000,000 LINA tokens created at Genesis. This will be allocated in the following ways.
Token Allocation by percentage:
5-Year Circulating Supply Token Release:
“Circulating Supply” is every token that is not locked up at a certain time. The majority of LINA tokens are subject to a lock up schedule, with all supplies that existed at genesis unlocked by month 60.
The seed round of investing involves our earliest long term and strategic investors. We recognize the commitment and trust our earliest backers represent so we have striven to ensure that their long term vision is aligned with ours as much as possible. The total amount allocated is 240,000,000 which is 2.4% of total token allocation. The initial token price for seed allocation is set at 0.00125USD and vested daily for 12 months after initial listing.
The private round of funding is allocated for private investors. There are three private rounds, the details of which are recorded below.
20% of all three rounds are released upon listing and are vested daily henceforth. The first private round (‘Private I’ in the graph above) is vested over 12 months; at listing 70,000,000 is released followed by daily vesting. The latter two rounds (‘Private II’ and ‘Private III’) are vested over 6 months; at listing 53,000,000 and 16,000,000 are released, followed by daily vesting of remaining tokens.
This allocation of tokens is for the public sale of LINA tokens. As a protocol with decentralization as one of its core values, Linear Finance recognizes the value of the protocol is only as good as the community and people that drive its development and meaningful governance. Prior to the listing, members of the public will be able to buy this allocation of tokens conditional on fulfilling registration and purchase requirements.
There will be a total of 47,222,222 tokens, splitting into two tranches of prices (0.0040–0.0045USD per token). These tokens will not have any transfer restrictions — once these tokens are vested they are unlocked and can be traded freely.
The team allocation of tokens is allocated to the team behind Linear Finance. The team at Linear Finance have diverse and comprehensive expertise spanning across finance, business and technology. This allows them to be in the best position possible to build a decentralized cross-chain compatible delta-one asset protocol that will solve the current pain points that plague current synthetic trading protocols to open up a new world of seamless investment exposure with unlimited liquidity.
The allocated amount of 1,000,000,000 equates to 10% of total initial token supply. Every member of the team has a 2 year lockup with 6-months cliff after launch. Tokens are vested quarterly. All tokens will be vested by month 27.
Our advisors have combined decades of leading institutional and industry experience to draw from to help Linear Finance negotiate the challenges ahead from development and launch to growth and beyond. Advisor allocation has the same arrangements as Team allocation (6 month cliff with a subsequent monthly vesting schedule until month 27). However, allocation is 5% of total token allocation (500,000,000). The same schedule ensures the Advisors are aligned with Linear Finance’s long term interests.
Liquidity allocation tokens primarily serve the function of maintaining liquidity on exchange listings. There are 500,000,000 tokens making up 5% of total initial token circulation. At the listing, 2% of tokens are unlocked (10,000,000). Subsequently, the tokens are vested monthly over 36 months (13,611,111 tokens per month). The vesting schedule is shorter than other categories as we believe that we will achieve full coverage on major exchanges by the end of 36 months (year 3).
The Ecosystem token allocation is to ensure and encourage a vibrant community on Linear Finance to flourish. Specifically, the ecosystem token allocation is used to support partnerships, grants and development programs for long term longevity. There are 1,000,000,000 tokens, making up 10% of total circulating supply. Upon listing, 2% (20,000,000) will be vested and unlocked. Following that, the vesting schedule is on a monthly basis over 60 months, releasing 16,333,333 a month. The longer time horizon of 60 months was chosen to ensure that the initial growth and development into maturity of Linear Finance can facilitate and realize innovative and meaningful projects and partnerships.
Community allocation serves to specifically develop user acquisition, engagement and management on the protocol. Whereas the ecosystem is focused on the wider development of the Linear Finance ecosystem, community allocation maintains a narrower focus on immediate users whether they stake, trade or mint liquids. Linear Finance is a protocol with high levels of interaction (staking, minting and trading), so sustained and organic community growth is particularly important. Getting community right is key to ensuring the long term sustainability of Linear Finance. There are 500,000,000 tokens making up 5% of total token circulation in community allocation. At listing 5% of this allocation (25,000,000) will be unlocked, followed by monthly vesting for the next 60 months (7,916,667 tokens per month).
This allocation will be determined by Linear Finance DAO. We are a decentralized protocol and aspire to be a real contributing force in the DeFi space. In the long term, Linear Finance will be governed by the people, for the people through the DAO. The long term vision is for the DAO to propose and vote for governance decisions on Linear Finance. After 12 months from the listing date, the DAO will be able to make a collective decision if and how Reserve allocation will be used. The total allocated is 1,500,000,000, amounting to a 15% of total initial circulating supply. This design enables meaningful DAO governance once Linear Finance is a mature enough protocol.
The backbone of Linear’s protocol is the staking LINA tokens. These LINA tokens are staked and used as collateral for ℓUSD which is required to mint new tradeable synthetic assets. Those rewards to stakers are locked for 6 month before they can be freely tradeable. LINA collateral pool is the lynch-pin that enables trading without a counterparty to become a truly decentralized platform. We have allocated 4,000,000,000 for staking rewards, making up 40% of the initial token supply. Initial staking rewards will be sourced from this reward pool, however as Linear Finance matures, a greater portion of the staking rewards will be sourced from trading fees.
Linear Finance is the first cross-chain compatible, decentralized delta-one asset protocol to create, trade, and manage synthetic assets (Liquids). Linear Finance is a faster, cheaper, safer, and easier to use alternative compared to other synthetic asset protocols, coupled with access to a wealth of creative investment assets.