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The Economy of Aleph Zero
Tokenomics are a crucial element that can make or break a project, read on to learn about the solutions Aleph Zero pursued to create an economically viable ecosystem.
The AZERO coin is inflationary with an annual 30'000'000 released as staking rewards and an infinite supply predicted. As of writing, there is no mechanism in place to burn AZERO coins, however, a future burning mechanism is not disregarded, especially as the ecosystem evolves.
Aleph Zero has allocated 23% of the tokens to the Aleph Zero Foundation and 10% to the team. Most of the tokens (23,334% or approximately 70'000'000 tokens) allocated to the Foundation will be spent on research and development, marketing, operations, as well as ecosystem incentives and other operational expenses. A large portion of the Foundation's supply will be used for the ecosystem fund. In later stages of project's decentralization, the community will be also able to vote on non-core spendings of the treasury.
Out of the team allocation, 80% of the coins will be locked for one year and vested over four years.
During the pre-seed funding round in 2018, the project issued AZERO coins to contributors via a Simple Agreement for Future Tokens (SAFT) basis at $0.04 and distributed 16,667% of the coins. Approximately 50% of these coins were unlocked at the Token Generation Event (TGE, or mainnet launch in other words), with the remaining 50% vested for 15 months.
The seed round resulted in 16,667% of the coins being distributed, with the difference that 71,42% were unlocked at TGE and 28,57% were vested for a period of 6 months. For this round, the tokens were priced at $0.057.
A special Early Community round distributed 5% of the tokens. These tokens in their entirety were vested for a period of between 14-64 days following the mainnet launch. For the duration of this round, the tokens were valued at $0.07.
The public presale that occurred next resulted in the further distribution of 18,33% of the total token supply. These coins were vested for a period of 12 months.
Finally, the public sale that took place in 2021 was priced at $0.10 per coin (150% higher than the pre-seed price). All of the coins distributed in this round have been unlocked upon TGE.