Tokenomics Details
Token Allocation Breakdown
The WES token distribution is carefully structured to balance platform needs, encourage participation, and support long-term sustainability. Here’s a deeper look into each allocation:
Early Investors (10%): Allocated to early supporters who provided the initial capital for platform development. A 12-month cliff ensures that these tokens are not immediately accessible, followed by a 24-month vesting period to encourage a long-term commitment to Wesion's success.
Community Sale (20%): Designed to enable a broad base of users to acquire WES tokens, fostering a decentralized ownership structure. Tokens are distributed over a 30-month period, ensuring a gradual release that avoids market shocks.
Liquidity (12%): Divided into two parts: 8% is allocated for immediate liquidity, while 4% is vested over 12 months to maintain market stability and facilitate smooth transactions on exchanges.
DAO Governance (11%): Reserved for governance participants to incentivize community-driven decision-making. The 36-month vesting period ensures long-term involvement in platform governance.
Reserved for Future Use (5%): Locked for future opportunities, enabling the platform to respond to market changes, technological advancements, or unforeseen challenges.
Ecosystem Fund (22%): A major allocation dedicated to platform development, partnerships, community grants, and user incentives. This fund supports continuous innovation, contributing to a dynamic ecosystem.
Community Projects (7%): Allocated to user-led projects that enhance the platform's value. By vesting over 54 months, this allocation encourages sustained user engagement and participation.
Team (10%): Vested over 48 months with a 6-month cliff, aligning the core team's incentives with the platform's long-term growth.
Early User Incentives (1%): Aimed at rewarding early adopters, these tokens encourage initial platform engagement and foster community growth.
Market Making (2%): Facilitates market stability, ensuring liquidity and minimizing sudden price fluctuations. Tokens are vested over 18 months to provide ongoing support.
Vesting Schedules
Vesting schedules play a crucial role in aligning stakeholder interests and maintaining market stability:
Early Investors: Tokens begin vesting after a 12-month cliff, spread over 24 months, to ensure early investors remain committed to Wesion’s success.
Team: The team’s tokens vest over 48 months with a 6-month cliff, reflecting a long-term commitment to the platform’s development.
Ecosystem and Community Projects: Vest over 54 months to ensure sustained support for ongoing development and engagement.
Burn Mechanism
The WES token incorporates a burn mechanism designed to control inflation and enhance token value. A portion of transaction fees is permanently removed from circulation, helping maintain token scarcity. Specifically:
Marketplace Transactions: 40% of transaction fees are burned, up to a cap of 250 million tokens. After reaching this cap, the fees will support staking rewards and ecosystem incentives, ensuring continued value for active participants.
Staking and Rewards
Staking is central to the platform’s security and user engagement strategy. Token holders can stake WES to participate in governance and earn rewards:
Staking Rewards: Users receive rewards based on the amount and duration of their stake. This encourages longer-term holding, reducing market volatility and fostering a stable governance structure.
Participation Incentives: Token holders who actively engage in governance or community projects can earn additional tokens, promoting platform health and growth.
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