Skip to main content

Monetary Policy and Token Supply

Overlay Protocol's native token, OVL, had an initial minted supply of 8,000,000 tokens at its Token Generation Event (TGE on Sept 19, 2022). As the protocol relies on dynamic minting and burning, there is no defined maximum total supply. The token supply is allocated as follows:

DAO Treasury: 58.80% Initial Developers: 15% Early Stakeholders: 26.13%

Of the 58.80% in the DAO Treasury, 7% should be allocated to Dev Fund and Community Incentives. This and all future allocations must be voted on and approved by the DAO. For example, the DAO could aim to fund community initiatives such as further Litter Box competitions, Referrals and Ambassador programs, and future Liquidity Mining Rewards.

The initial developers' tokens are subject to a vesting schedule (1 year cliff for 25%, 75% linear for a year after that) starting from TGE, while stakeholder tokens have a 2-year linear vesting schedule starting from January 2023.

Read this mirror article for a further detailed read about Tokenomics and incentive alignment for the sustainability of Overlay Protocol.