SNOW Tokenomics
ICZ Token Allocation on SNOW Mainnet
SNOW Token Allocation with post-crowdloan incentives
The total supply of ICZ is 2.66 Billion, with token allocations that can be derived into 4 categories:
- Community Incentives (Retention Rewards, Liquidity Incentives and Developer Incentives)
- Future Reserves
SNOW represents the first ever L1 extension layer parachain, serving as the dApp layer for the ICON blockchain. It is also the first BTP-optimized and EVM compatible parachain. Through BTP, SNOW connects Kusama to an interoperability network that includes ICON, Binance Smart Chain, NEAR, Harmony and more. ICON holders have received an immediate ICZ airdrop representing 35% of the ICZ supply. This provides significant liquidity and active users for SNOW’s first dApps and platforms. The ICZ airdrop is expected to stay active for approximately 6 months from the date of its launch.
A crowdloan is an essential component for generating a successful bid in the parachain auction. To win a parachain slot auction on the Kusama Relay Chain, projects must offer to lock up large amounts of Kusama (KSM) tokens for the duration of their parachain lease.
Crowdloans allow community members to stake their KSM or DOT tokens in support of a parachain’s auction bid. In return, supporters receive a variety of bonuses and incentives once the slot is secured. The ICZ crowdloan allocation accounts for 5% of the total supply.
- Crowdloan supporters receive a base reward of 4,000 ICZ per delegated $KSM. Early supporters can receive up to 4,000 extra ICZ per delegated $KSM (this early bird reward decreases linearly with cumulative $KSM raised).
- Referrals also yield a double bonus 5% - 5% extra awarded to referrer and 5% extra awarded to referee. To access the referral code, connect your wallet and click the referral button at the top of the crowdloan page.
SNOW has already secured a parachain slot in the KUSAMA Network and all the SNOW Network contributors have been rewarded with ICZ tokens.
A large part of SNOW token supply (50%) is allocated towards the community incentives treasury. This treasury is designed to heavily favor and reward crowdloan supporters and community members who actively stake or provide liquidity on SNOW. The three main aspects of the treasury are:
- Retention Rewards (20% of SNOW token supply): Users that stake their ICZ tokens will qualify for the early staker incentive. This is released to users over a set period, as an additional bonus for staking.
- Liquidity Incentives (15% of SNOW token supply): Incentive fund to encourage liquidity pools and emergent DeFi applications in the SNOW ecosystem. These funds will be released to users who lock ICZ and other assets in liquidity pools, or similar DeFi applications.
- Developer Incentives (15% of SNOW token supply): This pool of funds is used to incentivize the growth of the ICZ developer ecosystem, tools and dApps across all application domains.
Finally, 10% of the token supply is saved for future parachain slot renewal auctions.
The SNOW team do not receive any token allocation. Instead they will prove the value of the SNOW parachain and receive allocation from the initial issuance of tokens for SNOW’s sister Polkadot Parachain, ICE ($ICY).
The token supply has 5% inflation annually. This inflation is split between the following recipients:
- Stakers
- Collators
- Growth Fund
Users should pay transaction fees to submit transactions, with 80% being burned and 20% sent to the Growth fund.
A Growth fund is created from inflation and fees to ensure the network’s long term position on the Polkadot/Kusama blockchain. Initially, the Growth fund will hold extra ICZ tokens, which will be converted to stablecoins to award as grants for ecosystem growth projects.
The SNOW network will have two native assets - its own native asset ICZ, and ICX, bridged over by the BTP bridge. In the initial version, this will use the ICON bridge, until BTP is fully available.
When a user locks up governance tokens, they may choose to lock up an additional amount of ICX to ’boost’ their stake. The final equation for the boost will be released at a later date. The return on the locked ICX, which will be paid in ICZ, will have to start out greater than the return earned from simply staking ICX on ICON. To determine that return will require a stable market price for ICZ which may take a few months to settle after launch. Before that time the return will be determined solely on the amount of staked and delegated ICZ.
Last modified 9mo ago