As we get closer to a potential listing date, we want to remind the Konstellation community of the parameters of our token distribution that was initially set out in our whitepaper. 1,000,000,000 DARC is the total token supply.

And now… onto the token breakdown!

Token-Based Capital Raise (50%)

Half of the total token supply, or 500 million DARC mosaic tokens, was dedicated to the token offering. This raise was conducted in the first half of 2018.

Developers (6%)

Six percent of the total token supply, or 60 million DARC mosaic tokens, are reserved specifically for development talent. These tokens will be used in the future to incentivize not only company staff developers, but also community developers to participate in the ecosystem. Developers may also earn DARC token compensation as a bonus to better align incentives with the growth of the Konstellation Network. These earnings are subject to the following vesting schedule.

We have yet to recruit and partner with all of the developers that we plan to, as a result, many of these tokens remain untouched. Even for the token-based compensation already earned by staff developers working under CTO Stan Solodkyy, the vast majority of these tokens are vesting.

Seed (4%)

Four percent of the total token supply, or 40 million DARC tokens, were allocated to the earliest investors that helped kick off and accelerate our journey. As all of these investors are long term investors, we have spoken with them and believe that they will be holding their allocation for the long term. These are subject to vesting according to the parameters set out in our 2.6 whitepaper, half of the DARC tokens in this allocation will unlock after 1 year, with 25% unlocking after 2 years, and the remainder after year 3.

Company Reserve (10%)

Ten percent of the total token supply, or 100 million DARC tokens, are reserved for the use of the company. We have increased this amount to 10% for additional firepower in growing the blockchain ecosystem and the 5% difference has been specifically reallocated from the company staff and executives bucket.

These company reserve tokens are intended to be used solely in a manner that is accretive to the DARC token economy. At this point, the only use of this token bucket has been for select marketing programs. Future programs for further global visibility and participation by the community will also originate from this allocation.

As an idea that we have developed recently, these tokens could be offered as rewards in future hackathons to incentivize independent developers to build on the Konstellation Network and power the DARC token economy. Given the myriad of programs and technology development that could be funded by company reserve tokens, we are pleased with our decision to allocate more funding here.

Company Staff & Executives (30%)

30 percent of the total token supply, or 300 million DARC tokens, are reserved for the long-term attraction of human capital and talent for the proliferation and expansion of the Konstellation Network. As of now, very few company employees have begun to earn DARC-based compensation and, of those, none of them have received their tokens. Their vesting schedule will be assessed in the following manner.

Thus, in the discretionary token buckets reserved for company staff and developers, there is limited token supply that would be coming into the market in the near future.

In our efforts to provide transparency to the DARC Community, we hope that this explanation brings a better understanding of the various allocations of DARC tokens and how they will be used to develop the blockchain-based financial services ecosystem that will serve as the basis for a decentralized financial services industry in the future.

Keep posted for Part 2 of our token update!

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