Tokenomics and Emission Schedule Breakdown
With the Voi mainnet live and the token officially launched, we are excited to share Voi’s community-driven tokenomics and the projected emission schedule.
Our token distribution ensures that 75% of the total token supply is allocated to the community over 20 years, empowering community members to drive value back into the ecosystem through proposals and initiatives.
Disclaimer
This article will outline the current snapshot of the token landscape and could be modified by the community driven governance system.
If you disagree with the planned future release schedules outlined in this article you are empowered to change it in Voi.
Community Driven Tokenomics
The Voi network’s token supply is carefully distributed across multiple community-owned and managed categories to ensure fairness, growth, and success for the ecosystem. These allocations are designed to empower anyone in the Voi ecosystem to submit proposals and receive tokens to drive value back into the ecosystem through transparent and democratic processes.
The total token supply is emitted over 20 years, with community allocations such as block rewards, early, mid, and late incentives playing key roles in fostering ecosystem growth during this period.
Below, we detail the specific categories and their allocations. For a visual representation of token emissions, distribution timelines, and overall supply growth, refer to the graphs and tables provided in this section.
Community — Block Rewards: 10% (1B Tokens)
Block rewards form the backbone of Voi’s incentivization model for validators and node operators. These rewards are essential for maintaining network security and are distributed weekly based on the number of blocks produced by a Voi account.
- Allocation: 1 billion Voi tokens will be emitted as block rewards over 20 years.
- Weekly Distribution: Rewards decrease slightly each week, ensuring gradual token emission while incentivizing continuous participation.
The declining emissions model ensures that early participants are rewarded while gradually reducing token issuance to prevent inflation.
Community — Early: 15% (1.5B Tokens)
The Community — Early allocation is designed to bootstrap the ecosystem and ensure sustainable growth within the first 18 months of the TGE.
Importantly, this allocation is community-owned and managed. Any community member can submit proposals on how best to utilize this allocation to meet the ecosystem’s growth objectives and add value back to the ecosystem.
Testnet — Community Airdrop: 3.67% (367M Tokens)
The incentivized testnet played a crucial role in the development of the Voi network, with 3.67% of the total supply allocated to reward participants.
Every participant’s tokens are vested over 12 months, but the lockup period is variable and configured by the user, providing flexibility while encouraging long-term commitment.
- 12-Month Vesting: All tokens allocated through the testnet airdrop are vested over a 12-month period, ensuring a structured distribution.
- Variable Lockup (0 to 5 Years): Participants could configure their lockup period. A 0-year lockup allowed quicker access to the tokens post-vesting but resulted in fewer rewards. Longer lockup periods of 1 to 5 years offered increased rewards.
Notably, over 55% of the airdrop, which represents 2.03% of the total supply was locked up for 5 years.
This decision reflects the community’s belief in Voi’s long-term success and stability while helping to stabilize the network during its early stages.
Mainnet — Staking Program: 1.4% (140M Tokens)
The Voi Staking Program, with 1.4% of the total supply allocated to it, incentivizes early participation and long-term commitment. Participants can earn rewards through two opportunities:
- Lockup for Bonus Rewards: By locking up $VOI tokens, users gain additional bonus rewards through an airdrop. The bonus is determined by the timing and duration of the lockup, with earlier participation and longer lockup periods yielding higher rewards. Lockup options range from 1 to 18 months, with a maximum of 50 million $VOI tokens available for staking each week. Vesting is also on these tokens and is dependent on the lockup duration set, but is capped at 12 months.
- Staking for Block Rewards: Users can stake their locked-up and bonus tokens to secure the network and earn block rewards, which are accessible immediately without vesting restrictions. Once staking contracts are funded, users receive their full bonus for locked-up tokens upfront in their smart contract, allowing them to start earning block rewards immediately while the tokens are locked up and vesting.
The vesting period for bonus rewards begins after the lockup period ends, during which users progressively gain access to their locked tokens.
Mainnet — Pre-Block Rewards: 0.03% (3M Tokens)
A total of 3 million Voi tokens were allocated to Pre-Block Rewards to incentivize node runners to transition from testnet to mainnet. These rewards helped bootstrap network security and participation during the crucial early stages of Voi’s mainnet launch.
Mainnet — Marketing: 0.1% (10M Tokens)
To increase the reach of Voi following the token launch, an early allocation of marketing tokens has been set aside.
- Marketing and Outreach: Tokens from this allocation are dedicated to raising awareness about Voi, targeting both retail and institutional participants. This includes marketing campaigns, partnerships, and outreach initiatives designed to build momentum for the network and ensure a strong initial user base.
Mainnet — Exchange Liquidity: 1.31% (131M Tokens)
This allocation focuses specifically on ensuring deep liquidity on exchanges, via market makers. This supports the tradability of the Voi token from day one.
- Liquidity on Exchanges: Tokens from this allocation are used to incentivize liquidity providers, ensuring ample market depth across exchanges. This is essential for maintaining stable token prices and ensuring seamless trades.
- Support for Trading: The liquidity incentives ensure that there is strong market activity, making Voi tokens accessible to both retail and institutional participants.
This allocation plays a key role in establishing a stable and active market for the Voi token.
Mainnet — Users & Liquidity: 8.49% (849M Tokens)
Voi has allocated a significant portion of tokens to early participants to bring users and liquidity into the ecosystem. These tokens are community-owned and released into circulation only when a proposal is successfully approved.
- Users & Liquidity Focus: Incentives are designed to attract users to the Voi network, fostering decentralized services and financial tools within the ecosystem.
- Community-Driven Initiatives: The Voi community is empowered to submit proposals, creating initiatives that help drive desired outcomes for ecosystem growth.
By giving the community early access to these incentives, Voi ensures that its network attracts users and liquidity into the broader ecosystem, not just on exchanges.
Community — Mid: 30% (3B Tokens)
The Community — Mid allocation, which unlocks linearly over 5 years, is part of the community-owned and managed grants system, empowering community members to submit Builder, Service, or Initiative proposals that benefit the ecosystem.
This allocation funds grants for:
- Developers building innovative solutions in the Voi network, including dApps and tool integration.
- Services provided to the ecosystem by individuals or entities such as DAOs.
- Initiatives that expand and nurture the ecosystem during this critical growth period.
This allocation is essential for ensuring the continued evolution of the Voi ecosystem by attracting developers, service providers, and partners who contribute to the network’s growth and success.
Community — Late: 20% (2B Tokens)
The Community — Late allocation, only accessible after 5 years, will be leveraged through the existing grant proposal process, ensuring that tokens are allocated to community members who add value or leverage tokens to strengthen the ecosystem.
This allocation funds:
- Rewarding Contributions: Providing tokens to community members who deliver value through development work, strategic initiatives, or ecosystem contributions.
- Leveraging Tokens for Ecosystem Growth: Supporting projects that utilize Voi tokens to expand and strengthen the network, including dApps and services.
By using the grant proposal process, the Community Late fund ensures that resource allocation is transparent and community-driven, providing incentives for those who actively contribute to Voi’s long-term success.
Core Team and Employees: 10% (1B Tokens)
The Core Team plays a pivotal role in Voi’s success. To ensure long-term alignment, the team’s tokens are locked for two years, with a three-year linear vesting schedule afterward.
- Lockup and Vesting: 100% of the Core Team’s tokens are locked for two years. Afterward, tokens vest linearly over three years, preventing sudden liquidity influxes that could impact the market.
- Alignment with Success: This structure ensures that the team remains aligned with Voi’s long-term growth, incentivizing continued network development.
Notably, Voi’s team allocation is around 50% lower than the typical industry standard, demonstrating a strong commitment to decentralization and community ownership.
Investors: 1.73% (170M Tokens)
Voi prides itself on only raising capital when necessary to ensure that the network remains community-driven and that private investors do not own a disproportionate amount of the ecosystem. This approach helps maintain Voi’s core thesis of decentralization and long-term sustainability.
- Conservative Fundraising Approach: Voi is proud to have only leveraged 1.73% of the total token supply through private investors to successfully launch the network and token. By limiting private investment, Voi has preserved the integrity of its tokenomics, ensuring that the majority of the network’s value remains in the hands of the community.
- Prestigious Backers: Voi is supported by prestigious venture capital firms such as Arrington Capital and Sonic Boom, both of whom believe in our vision of creating a blockchain that is community-built, run, and owned.
- Private Round: Private round investors, our earliest backers, were the first to believe in our vision and will receive their tokens through a structured vesting period to ensure long-term commitment to Voi’s growth.
- Pre-Seed & Seed Rounds: Pre-seed and seed investors also provided early support, and their allocations are locked and vested over time to minimize short-term market impacts.
By locking & vesting these tokens and securing favorable terms with private investors, Voi ensures that early investors contribute to long-term ecosystem growth without disrupting the ecosystem’s economics.
Note: Private investors are unable to stake their tokens to claim block rewards during the first year, further ensuring that the ecosystem remains balanced.
Treasury: 13.27% (1.3B Tokens)
The Treasury ensures Voi’s ongoing growth and stability, providing financial flexibility and strategic resources for ecosystem expansion. With 15% of the total token supply originally allocated across three distinct buckets, only 1.73% has been utilized to bring Voi Network to mainnet.
Treasury Unlocking Schedule:
- Bucket 1: Unlocks at TGE.
- Bucket 2: Unlocks two years after TGE.
- Bucket 3: Unlocks five years after TGE.
Treasury Token Selling Rules:
- Daily Sales Limit: Sales are restricted to a fixed daily amount or a percentage of the total market volume, ensuring that large sell-offs do not disrupt the market.
- Price Drop and Threshold Safeguards: If the price of Voi drops by more than 10% within 24 hours, or falls below a predefined threshold, all token sales from the Treasury are automatically halted.
- Transparency and Accountability: All token sales will be conducted from publicly disclosed wallets, providing the community with full transparency.
These measures ensure that the Treasury and the Block Authority operate in a transparent, fair, and stable manner, supporting Voi’s long-term growth without destabilizing the market.
Additional Reading
For those who love data!
While this article explains the highlevel tokenomics, here is the current state of play for the expected emissions and circulating supply of Voi based on all currently funded proposals.
It’s important to remember that while allocations like Community - Early are “accessible” they are not truly in circulation until paid out via an accepted proposal signed off by the community.
https://docs.google.com/spreadsheets/d/1xkDfeYMqgTWIzbTBgRi75pa7WtIcgZHdfvxaxewZLzQ/edit?usp=sharing
