⚖️Token Distribution

At genesis, the LAOS Foundation will create an initial total token supply of 1,000,000,000 LAOS tokens. The LAOS token allocation is designed to ensure a fair and balanced distribution that supports both the development and longevity of LAOS. We aim to stimulate active participation, reward contributors, and incentivize stakeholders in a manner that aligns with our community-centric ethos.

The LAOS token vesting process utilizes a release schedule to maintain the project's long-term stability. This schedule outlines the timeline for tokens allocated to various stakeholders to gradually become accessible. This approach safeguards against sudden market flooding, encourages ongoing commitment, and protects the LAOS token value. It embodies our commitment to transparency, fairness, and sustainable growth within our ecosystem.

LAOS Token Allocation

The initial Tokenomics paper outlined four main pools: the Investors pool, the Community Incentives & Distribution pool, the Treasury Pool and the Core Team pool. These pools each have specific vesting conditions, which are detailed in the section below.

Following the winning of a parachain slot, the completion of the genesis runtime development, and preparations for the public sale, greater clarity has been achieved. Consequently, these pools have been further subdivided while adhering to the original vesting conditions. The following pie chart shows the subdivision of each of the four main pools.

Main pools grouped by common vesting conditions

Main pools sorted clockwise by size

The following table specifies the vesting conditions for each pool, sorted by increasing length of the total lockup period:

Pool	%	Cliff (months)	Vesting (months)	Total Lockup
Crowdloan Rewards	1.0%	0	24	2 years
Community Incentives	19.0%	0	24	2 years
Collator & Delegator Rewards	15.0%	0	24	2 years
Initial Public Sale	3.0%	0	36	3 years
Treasury	20.0%	0	36	3 years
Early Backers	12.0%	12	24	3 years
New Investors	8.0%	12	24	3 years
Core Team Allocated	16.05%	12	36	4 Years
Core Team Unallocated	5.95%	12	36	4 Years

Objectives of Each Pool

• The Crowdloan Rewards pool (~1%) is set aside for rewards related to Crowdloan contributions, reflecting the 100 LAOS per DOT for nearly 100,000 DOT contributed.

• The Community Incentives pool (19%) is allocated for incentivizing projects and developers to build on LAOS, as well as to enhance LAOS' visibility. Examples of envisaged usage of this pool include incentivizing support for Bridgeless Minting in popular marketplaces in Ethereum or Polygon, development grants for DApps that use LAOS, as well as meaningful marketing initiatives, community growth, and presentation of LAOS possibilities in relevant conferences. Upon decentralization of governance, this pool will be managed by the LAOS community.

• The Collator Incentives pool (15%) is earmarked for programatically distributing collator and delegator incentives over the first two years, at a rate of 7.5% annually (see Collator Incentives section for more details).

• The Public Sale Pool (3%) holds the designated tokens aimed for the Public Sale. Note that undistributed tokens from the New Investors pool may be added to potential Public Sales.

• Treasury Pool (20%) is allocated to support core ecosystem growth, core protocol development, and to cover legal and operational expenses. Upon decentralizing governance, control of the treasury will transfer to the LAOS community.

• The Early Backers pool (12%) contains the allocation for early investors that funded the development of LAOS, from inception to its genesis event.

• The New Investors pool (8%) contains the allocation for the maximum amount that can be used in the ongoing token private sale (up to 8%), allocated proportionally to participants. Any undistributed tokens will be reserved for potential future fundraising rounds or a public sale.

• The Core Team Initial Allocation pool (16.05%) is assigned to current core contributors to LAOS, including core protocol development as well as initial onboarding tools aimed at showing its possibilities to potential new DApp developers. Note that token vesting in this pool is conditional on the core contributor's continued involvement throughout the vesting period.

• The Core Team Unallocated pool (5.95%) serves the same purpose as the initially allocated part, but it is aimed to be used for future core contributors. It will be managed once governance is decentralized.

LAOS Token Vesting

Given the vesting conditions of each pool, the following chart illustrates the evolution of the total amount of LAOS tokens vested per month over the first four years post-launch:

Evolution of the total amount of LAOS Tokens (vertical axis) vested per month, grouped by pool.

The following plot highlights a relevant aspect of the vesting conditions. The commitment to early decentralization becomes evident when analyzing the circulating supply. Initially, the liquid token supply is fully in the hands of the community. As tokens allotted to investors and core team members progressively unlock, the community's share incrementally decreases. However, it always maintains at least 60%, ensuring LAOS remains sufficiently decentralized at all times.

This plot shows the circulating supply on the vertical axis and time in months on the horizontal axis, categorized into two main groups. The 'Community' group includes Crowdloan Rewards, Community Incentives, Collator Incentives, Public Sale, and Treasury pools. The 'Insider' group comprises Early Backers, Investors, and both Core Team pools.