Conversation

1) (blog-post format: projectserum.com/blog/srm-supply) 90% of all SRM tokens are locked up long-term. We think this is really cool: it means that the core players, including all of the seed investors, are committed to the long-term success of the project.

SBF

@SBF_FTX

Aug 5, 2020

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.

SBF

@SBF_FTX

Aug 5, 2020

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!

SBF

@SBF_FTX

Aug 5, 2020

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!

SBF

@SBF_FTX

Aug 5, 2020

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.

SBF

@SBF_FTX

Aug 5, 2020

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).

SBF

@SBF_FTX

Aug 5, 2020

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.

SBF

@SBF_FTX

Aug 5, 2020

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.

SBF

@SBF_FTX

Aug 5, 2020

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

SBF

@SBF_FTX

Aug 5, 2020

10) That's an eternity in crypto (6 years ago Ethereum and Binance didn’t even exist yet!).

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).

5:50 PM · Aug 5, 2020Twitter Web App

Replying to

12) Just as with FTT, the initial success of SRM is critically important --and we’ve made sure that the initial conditions of SRM support its growth as well as the growth of a vibrant, decentralized community.

@ProjectSerum

projectserum.com