Update Chain Token Release Schedules and Repurpose

Chain proposes to add additional token lock ups and repurpose the main distribution allocation. Details below:

According to Chain’s token economics document (chain.com/token.pdf known as the “Tokenomics”) there are 50,000,000 CHN tokens allocated to the distribution to Sequence clients retroactively and for future clients. While the original allocation was distributed to those users there’s 15,429,918 CHN that can be freely distributed with no vesting schedules. So in theory this allocation is unlocked. (“Distribution Allocation”)

Chain proposes to take the Distribution Allocation and add a monthly release schedule set at 100,000 CHN per month. This will give a more predictable supply release schedule whereas currently there are no technical nor articulated release schedules for this allocation. Chain also proposes that this Distribution Allocation be enabled for every product that is launched or acquired by Chain to be able to receive rewards or distributions from this allocation.

The Chain Team has also previously received 15,000,000 CHN unlocked and 15,000,000 locked via time lock smart contracts based on the Tokenomics. 2,500,000 has already been released into the company’s hot wallet and used/allocated for various purposes leaving 12,500,000 unlocked, still able to be used. While this number is very high in monetary terms, we also propose to add a more controlled release schedule for even the unlocked portion of this allocation. Chain proposes to add a monthly release cap of 250,000 CHN so this allocation can also be tracked via a predictable release schedule alongside the time lock allocation. (“Team Allocation”)

Chain has implemented these changes ahead of the polling to Team allocation and the Distribution Allocation smart contracts.

Lastly, based on the Tokenomics, there are 10,000,000 CHN allocated to the Founders, community members and advisors of the project. This allocation is entirely unlocked. However, given market dynamics, we propose that 50% of this allocation become locked in a time lock smart contract with a monthly release of 100,000 if this proposal passes.