Emissions
Last updated
Last updated
The below graphs are used to understand your emission schedule. By ‘emissions’ we specifically mean releasing minted tokens from your treasury (which is the sum total of all unreleased tokens in each respective category) into circulating supply. Or in other words: Circulating Supply + Treasury = Total Supply.
One can generally expect selling pressure when tokens become available (specifically from the fundraising rounds), making token emissions a useful metric for assessing and evaluating the impact of releasing tokens into the market. However, not all token tranches have tokens that are sold as soon as they’re unlocked.
Firstly, the user growth projections helped shape the emissions schedule, as discussed above. Secondly, 6th Man Ventures Token Unlock Analysis played a role in shaping the structure. They explored over 5,000 different unlock events ().
Given these two factors, several takeaways were used when designing the token unlock schedule.
The user growth projections align with the emissions.
To focus on small unlock events, those that increase circulating supply by 0% to 1%, as these had no meaningful relationship to price. This is the reason for linear unlocks.
Larger unlocks, those that increase circulating supply by greater than 1%, are to be generally avoided as they correlate to a noticeable, negative relationship: as unlock size increased, prices decreased.
Rethink the inclusion of a large vesting cliffs, instead scatter the unlocks across a larger period of time as such events can create significant and unnecessary price pressure.
We must also be aware that token price may be substantially more volatile in the first half of the vest schedule.
It is important to note, whilst tokens are unlocked linearly, they will not necessarily be released into the market at a linear rate as the use of tokens from these tranches will be governed by various factors, such as internal company affairs or market sentiment.
Looking at the emissions of each tranche as a share of the total circulating supply, we see that the team and investors are always in the minority of all supply, especially in the beginning when the token is most vulnerable to sell pressure.
Looking at the emissions per month, we see that the first year has the most emitted tokens per month, which is a strategic decision as these tokens will be sold and absorbed by the bull market.
