Yesterday the core team shared the tokenomics of the Edge Network, looking at how $XE and $EDGE work within the Edge ecosystem.
Today I’m happy to be able to share details about the distribution plans for $XE.
A total of 50 million $XE will be minted and distributed. In addition to this, 10 million $XE are locked in the network to be mined and released as node rewards.
Holders of the original $EDGE token who have been through the swap process to TNC in Edge Console will be able to claim a distribution of $XE. This distribution is proportional to their original holdings, factoring the reduction in supply.
In addition, 10% of all holders funds will be held back to create the Growth Fund, which is controlled through network governance.
The Dev Fund holds $XE assigned to support the day-to-day development of the network. The Growth Fund holds $XE assigned to support the marketing and growth in uptake of the Edge Network. The Staking Contract holds $XE locked in the network as governance and node stakes. The Community distribution is the $XE held by individual supporters and customers of the Edge Network.
The figures below are projected initial distribution percentages for $XE:
The Dev Fund holds $XE assigned to support the technological development of the Edge Network.
The use of these funds is under the control of the core team, with guidance regarding focus provided through project governance.
The dev fund is designed to be used for core development. This includes developer remuneration, hardware and software costs, securing IP rights and any other directly associated overheads.
The dev fund is funded by a buy back and make programme, with network revenues converted to $XE and transferred to the fund. The initial distribution to the dev fund represents the swapped original $EDGE token holdings of the network treasury.
The Growth Fund holds $XE assigned to support the marketing and growth in uptake of the Edge Network.
The use of these funds is under the control of project governance, meaning that community members can raise proposals for its use, and vote on proposals raised.
The growth fund is designed to be used for activities outside of core development. This includes exchange listings, marketing, third party integrations, partnerships and community engagement.
The growth fund is initially funded through a dilution applied to all holdings of the original $EDGE token. A buy back and make programme assigns a percent of network revenues to the growth fund. In addition to this, a percent of the gas fees from the network bridge are put into the growth fund.
The Growth Fund is controlled through network governance.
The Staking Contract holds $XE that has been locked in the network for participation in governance or for the contribution of a network node.
Individual node stakes are locked for a minimum period of 90 days.
Individuals who want to withdraw ahead of the lock period will be able to do so for a fee (amount TBC). This fee will be put into the growth fund.
The founding team allocation at crowdsale in 2018 was 20%. This was vested over five years. Three years of vested tokens have been released, in February 2018, February 2019 and February 2020.
The remaining allocation – 8% – has been swapped to $XE and a new vesting schedule has been put in place. This schedule runs over five years, releasing at 20% per year, meaning that a maximum of 1.6% of supply will be made available to the founding team per year.
The three original founders of Edge hold the largest portion of this distribution at 2.15% each.
The $XE wallet addresses used for vesting – including the individual wallets of the founders – will be broken out and published, inline with Edge’s commitment to transparency.
$XE has a minable supply of 10 million coins, with a steady emissions curve tied to block time. Mined coins provide the yield for the network and are released as node rewards.
The maximum yield in year one is 1 million $XE (10%). This will be reduced in year two, further in year three and so on.
The following table shows expected emitted $XE for the next five years:
|Year||Emitted $XE||Supply Increase|
🔗Individual $XE Distribution Calculator
You can see a spreadsheet that can be used to calculate the $XE that you will be able claim here: ed.ge/xe/calculator
To use this sheet:
- Create a copy of the sheet
- Update cell B2 with the number of $EDGE tokens that you swapped through Edge Console
- Cell B10 will show the number of $XE available for you to claim
The distribution of $XE reflects the holdings of the original $EDGE token; there is a small dilution designed to further community involvement; the overall supply has been reduced; and the network now emits node rewards.
All of the wallet addresses relating to project holdings and controlled by the project will be published.
Timings for the distribution to be opened remain to be confirmed, and are dictated by the variable timelines of security testing. We expect to see this complete in the coming weeks, with distribution opening up thereafter.
Chris & I will also be holding an AMA this Thursday in our Discord channel. Please get your questions into BJay and Rick ahead of time and we’ll endeavour to get them all answered in the season.
We’re all extremely excited for the future of the Edge platform. The underlying technology is rock solid, and the exposure of the network’s ledger as a method value storage and transfer brings an entirely new dimension to the project. Involving the community directly in the allocation of funds through the growth fund is a big milestone, and we’re excited to see how the governance framework will be used to further Edge.