Token Distribution
Disclaimer: The tokenomics details, including the distribution and allocation mechanisms, are still under development and may be adjusted before the mainnet launch to better serve the evolving needs of the OverProtocol ecosystem.
OverProtocol has a supply schedule that releases 1 billion OVER over 10 years. Upon entering the 11th year, no additional tokens will be issued.
Token Allocation
1. Staking Rewards
30% of the total tokens, equating to 300 million OVER, will be distributed over 10 years. The issuance plan allocates 200 million OVER as the minimum guaranteed reward, distributed in equal annual amounts to stakers. The remaining 100 million OVER will be used as an adjustable reward, modulated in real-time by the system without human intervention, based on the desired staking quantity. Further details are described below.
2. DAO Treasury
The DAO Treasury is a pivotal component in the sustainable growth and development of the OverProtocol ecosystem, with the goal of supporting DeFi, Layer 2 solutions, and other ecosystem initiatives. It will introduce governance mechanisms allowing participation from node validators, Nethers stakers, and potentially other contributors in deciding the allocation of treasury funds. The treasury will be funded by a linear distribution of 10% of the total supply (100 million OVER) over ten years, along with the base fee from transaction fees being allocated to the treasury.
3. Over Community Access Program(OCAP)
Of the total supply, 15% is initially allocated to the OCAP. OCAP facilitates the distribution of OVER in various ways, such as airdrops for early community members and contributors, or through liquidity provision. The goal is to make participation in OverProtocol accessible to those who share our vision.
4. Others
The remaining 450 million OVER tokens are earmarked for distribution to four entities: Core Contributors, Investors, Over Technologies, and the Over Foundation. The distribution will follow a 2-year schedule, which includes a 6-month cliff and 18 months of linear vesting.
Staking Rewards
Minimum Guaranteed Rewards
OverProtocol's token issuance plan allocates 200 million OVER as the minimum guaranteed reward, distributed in equal annual amounts to stakers. These rewards are proportionally distributed to validators based on their staking balance and required participation rate every epoch.
Adjustable Rewards
The actual release of staking rewards is adjusted by the protocol's predefined feedback mechanism. This mechanism acts as a reserve system to modulate the issuance levels: it reduces actual issuance when staking rewards are sufficient and increases issuance when additional rewards are needed. These adjustments are made based on the current staking rate, ranging between a minimum guaranteed reward of 20 million OVER per year to a maximum of 30 million OVER per year. Importantly, this reserve system is not managed by external entities but is governed by an internal feedback mechanism within the protocol. Refer to this page for a comprehensive overview of the feedback mechanism.
After the 10-year issuance period is over, any remaining reserve for the adjustable rewards will continue to be distributed to stakers.
| Year | Minimum Issuance | Maximum Issuance |
|---|---|---|
| Year 1 ~ 10 | 20M OVER | 30M OVER |
| Year 11 ~ | 0 OVER | 10M OVER |