[EXAIP-02] Adjustments to the EXA token distribution scheme

• Proposal ID: EXAIP-02
• Proposer: Exactly Core Team
• Date: October 12, 2023

Introduction

In response to the Exactly Incident of August 18, 2023, and to better navigate the operational repercussions of this event, we propose changes to the distribution and lock-up schedule of EXA tokens and introduce a new escrowed EXA token (esEXA) for community rewards (EXAIP-01). These changes are designed to safeguard the interests of our users, community members, core team, advisors, and investors while maintaining the resilience of the Exactly Protocol.

Details of the Proposal

The existing total supply of 10,000,000 EXA tokens will remain unchanged. However, we propose the following modifications to the distribution and vesting terms of the current EXA tokenomics:

1. Investors, advisors, and team members. 1.1 Postponement of the initial claim date: - Old Date: January 1, 2024 - New Date: June 1, 2024 - Implication: This postponement will delay the delivery of EXA tokens and initiate the lock-up period six months later than originally scheduled. 1.2 Extension of the lock-up period: - Old Period: 36 months - New Period: 48 months - Details: Starting from June 1, 2024, EXA tokens will unlock linearly on a 1/48 basis, extending through May 31, 2028.

2. Community Rewards 2.1 Transition to the EscrowedEXA token rewards (esEXA) with EXAIP-01 proposal. - Details: Community members will receive esEXA tokens through the rewards controller, replacing the initial EXA tokens. 2.2 Extension of the emission period: - Old End Date: September 18, 2023 - New End Date: May 31, 2028 - Details: The emission of esEXA tokens will start in October 2023 and continue until May 31, 2028, extending the emission period by an additional 12 months.

Request for Approval

We solicit the Exactly community's feedback and approval to implement these changes, which aim to balance immediate recovery actions with long-term sustainability and growth. These proposed changes are devised with a forward-looking approach to safeguard the ecosystem and foster trust and stability among all EXA holders.

Conclusion

We are committed to steering the Exactly protocol through these challenging times with transparency and resilience. We believe that these modifications represent a balanced and thoughtful strategy to protect and serve the interests of the EXA community while ensuring the protocol’s future stability and success.

Next Steps

Pending community feedback and approval, the new EXA distribution plan will be implemented to ensure a smooth and secure transition according to this new scheme.