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SBF
@SBF_FTX
2) The lockup lasts for 7 years (!), with none unlocking in the first year. This is a really long time in crypto, and it’s intentional. It scared away lots of VCs but what it left us with were the ones that were really on board with helping to grow out the ecosystem.
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SBF
@SBF_FTX
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@SBF_FTX
3) We’ve gotten a lot of positive feedback about this from the DeFi community. We’ve also gotten some confusion over the circulating supply though, and we’re really grateful for that feedback!
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SBF
@SBF_FTX
4) Just 10% of all SRM are unlocked for the first year. But most of those are ecosystem incentives (e.g. yield for staking). After taking the DeFi community’s feedback into account, we’re happy to announce even further commitments to the long-term health of Serum and SRM!
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SBF
@SBF_FTX
5) The holders of the entire unlocked supply of SRM, including the 175mm tokens previously designated as circulating, have agreed to remove most of their tokens from the initial circulation -- roughly 150mm.
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SBF
@SBF_FTX
6) This leaves us with an updated initial circulating supply of 31mm (6mm SRM allocated to IEO participants, and 25mm allocated to project contributors and liquidity providers).
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SBF
@SBF_FTX
7) These SRM will exclusively be used to provide liquidity to satisfy buy-side demand and support the Serum ecosystem through yield and grants. The liquidity providers and project contributors are as committed as can be to the long-term success of SRM and Project Serum.
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SBF
@SBF_FTX
8) This means committing not to release any unlocked SRM tokens lower than the IEO or listing price for this first year (except as incentives to the SRM holders through staking!), and even beyond that only offering as much as is necessary to meet the demand of buyers.
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SBF
@SBF_FTX
9) This puts SRM in a truly unique position as a token: for the entire first year, there will be no seed sales unlocked, 90% of all tokens locked, and no motivated net sellers of any kind. And after that, the unlocking will happen slowly, over the next 6 years
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SBF
@SBF_FTX
10) That's an eternity in crypto (6 years ago Ethereum and Binance didn’t even exist yet!).
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SBF
@SBF_FTX
11) I can personally say that I’m committed to making the SRM token a success--and just as much, to making the Serum ecosystem grow (stay tuned for the first releases shortly).
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