Tokenomics
SQD is the ERC-20 protocol token that is native to the Subsquid Network ecosystem. The token smart contract is to be deployed on the Ethereum mainnet and bridged to Arbitrum One. This strategy seeks to ensure the blockchain serves as a reliable, censorship-resistant, and verifiably impartial ledger, facilitating reward settlements and managing access to network resources.
Token Utility
The SQD token is a critical component of the Subsquid ecosystem. Use cases for the SQD token are focused on streamlining and securing network operations in a permissionless manner:
- Alignment of incentives for infrastructure providers: SQD is used to reward node operators that contribute computation and storage resources to the network.
- Curation of network participants: Via delegation, the SQD token design includes built-in curation of nodes, facilitating permissionless selection of trustworthy operators for rewards.
- Fair resource consumption: By locking SQD tokens, consumers of data from the decentralized data lake may increase rate limits.
- Network decision making: SQD tokenholders can participate in governance, and are enabled to vote on protocol changes and other proposals.
The SQD token’s innovative curation component allows the Subsquid community to delegate SQD to Node Operators of their choice, ensuring trustlessness. SQD’s utility as a tool for adjusting rate limits is unique in increasing trustless performance, by locking SQD tokens, without having to pay a centralized provider for quicker or more efficient data access.
| Category | % of Total Supply | Description |
|---|---|---|
| Pre-Seed Backers | 12 | Subsquid’s earliest backers from the beginning of 2021. 6-month lockup after TGE, with a 20% release followed by a 24-month linear vesting for the remaining 80%. |
| Seed Backers | 16.3 | Early backers from late 2021. 6-month lockup after TGE, with a 20% release followed by a 24-month linear vesting for the remaining 80%. |
| Strategic I Backers | 4.6 | Strategic backers from early 2022. 12-month linear vesting after TGE. |
| Strategic II Backers | 2 | Strategic backers from 2022. 6-month lockup after TGE, with a 25% release followed by an 18-month linear vesting for the remaining 75%. |
| Team | 15 | 6-month lockup after TGE, with a 20% release followed by a 24-month linear vesting for the remaining 80%. |
| Reserved Treasury | 28.1 | Allocated for network development, grant programs, bounties, and ecosystem activities. 36-month linear vesting after TGE. |
| Liquid Treasury | 5 | Liquid tokens for market making, liquidity provision on CEX/DEX, other ecosystem activities and events. |
| Worker Rewards | 10 | Allocated to reward network node operators. 84-month vesting after TGE. |
| Community Sale | 5 | 20% release at TGE, followed by a 6-month linear vesting. |
| Testnet Participants | 1 | Allocated to reward early adopters of the network who participated in the testnet on CoinList. 6-month linear vesting after TGE. |
| Testnet Worker | 1 | Allocated to reward early node operators in the network who participated in the testnet on CoinList. 12-months lockup after TGE, followed by a 24-month linear vesting. |
*Please note that all figures are approximate based on date estimates, and may be impacted by alternate dates and other events.
