The SubQuery Token (SQT)
The SubQuery Token (SQT)
The SubQuery Network is powered by the SubQuery Token (SQT).
The SubQuery Token (SQT) is designed as a utility token that powers the SubQuery Network, providing an incentive for participation, as well as serving as a medium of exchange for transactions within the SubQuery Network. Consumers of data will commit SQT in exchange for data from Indexers and this SQT will be distributed among Indexers based on the payment method selected.
This token is the utility and incentive mechanism driving the network, however, the network was not initially designed with a token in mind. The network is designed to provide value where Indexers can index, aggregate and then serve blockchain data and make this available with speed and simplicity to Consumers who need blockchain data to power their applications. SQT is a natural solution allowing market participants to transact and transfer value. This approach ensures that the fundamental value of SubQuery drives the value of the token and not the other way around.
There is no intention for SQT to be used as a medium of exchange for goods or services outside of the SubQuery Network. SQT does not in any way represent or confer upon its holders any right to, title of, interest or participation in, the ownership, shareholding and/or management of SubQuery whatsoever. SQT will not entitle holders to any promise of fees, dividends, revenue, profits, or investment returns.
Tokenomics
Please note that the following SQT Token Allocation Plan and Token Vesting Schedule are still subject to change.
Supply
The initial supply will be 10 Billion tokens.
Inflation
The inflation will be ~2% per annum. This will be used to help the SubQuery Foundation bootstrap the network by supporting Indexers during the early launch phase where Consumers numbers will still be growing.
Allocation
Token allocation is as follows:
From the start, SubQuery has been focused on building value within the community and this aim continues with the largest allocation of tokens (44%) being apportioned to the Community and SubQuery Foundation.
The Foundation, which is expected to be established in early 2022, will administer the future governance and growth of the ecosystem and the ownership of the SubQuery Network will come under the SubQuery Foundation initially. This large allocation also includes consideration for future investment into the development and operations of the Network, and key ecosystem growth drivers. This will include tools such as grants and ecosystem incentives/events as well as other marketing activities including bug bounties and mainnet incentives.
Early investors in both the Seed and Series A rounds have a combined allocation of 27%. In the case of our Seed investors, SubQuery is grateful for their early vision and commitment to build the initial phase of SubQuery. Following on from this, growth was accelerated with the support of Series A investors who allowed the project to accelerate to the next level.
For the Public Sale, 9% of token supply has been allocated across at least two sequential rounds. The exact structure and timing of these rounds can be found here.
Finally, the SubQuery Team and Launch Partners have been allocated 20% of the token supply in return for their tireless dedication and contribution in building and promoting the project from the outset.
Vesting schedule
We have designed our vesting schedule to demonstrate the commitment of various stakeholders. The graphic below illustrates the release of the SQT tokens to each participant over time culminating in the full circulation of tokens occurring 5 years (60 months) after launch.
The vesting schedules for each participant has been designed to create long-term value for the project and generate confidence to token-holders. Perhaps most significantly, the core team will have a 24 month lock-up period which will then vest over another 24 months while some Public Sale participants can freely use the utility of their token upon launch.
The Foundation and Community will have approximately 30% of the allocation unlocked from the start to meet the operational needs of launching and promoting mainnet with the rest of the allocation vesting gradually over 5 years.