STEP Distribution
Distribution of STEP tokens at time of issuance
All STEP tokens are minted upfront with certain pools of tokens being subject to vesting or lockups. It can be assumed that anything which is part of the below wallet is not part of 'circulating supply' as it is not circulating and locked. STEP tokens not part of the below wallets are not owned or controlled by Step Finance. As discussed in the previous section STEP is distributed to the following pools:
This wallet functions as the core pool for paying expenses from and is where the STEP Treasury tokens reside. Expenses mean costs associated with running Step.finance including team salaries, server costs, marketing expenses or anything else which incurs an expense paid for by the protocol.
This wallet collects revenues earned by the STEP protocol. This includes: Auto compounding fees, DEX Settlement fees, Token Account closure fees, Step AMM swap fees and Reward Options exercised. This wallet periodically pays the xSTEP staking contract with 100% of fees collected every 1-2 days. This is where the yield for the xSTEP token comes from.
This wallet is where the majority of supply is and will be distributed over a set emissions schedule. Currently LP rewards are distributed from this pool and future Reward Options will also come from this pool. Ultimately, we intend this pool's tokens to find its way into circulating supply over time as we distribute tokens to users for undertaking productive tasks (adding liquidity or using the platform in some way).
Once all coins are distributed from this pool we still intended to reward users however by that time we will be a much larger project with many value accrual mechanics whereby incentives can be paid directly from fee revenue ensuring no additional coins are required to be emitted.
This pool is set aside for airdrop rewards in future. We have no ETA for this. Our intent is to vampire other protocols to bring new users in, reward existing Solana users or any other creative mechanics associated with airdrops.
Team Pool: Various
This pool is locked tokens belonging to the team which are subject to a vesting schedule set forth in the Step Tokenomics guide. The first minting of these coins has taken place for the 25% vesting schedule from the tokenomics guide here: https://solscan.io/tx/4caEpdQ3ZJ8XMEs8kvvmgGTHFevsreZshFw1QASuMi3LxpVWPx6zsw3MWu2NqzAk4ewd6tMkiTePUnEE1KdhSiyo
Team coins unlock in increments every 6 months for 2 years. Note the team coins are subject to the reduced issuance due to the recent 50% token burn.
Pre-Sale Investors Pool: DdWYfUZYWKX5NayWjs8iKyhDFjKzT9D1KvNqDnvQsDmQ
1st Unlock 31 March 2022 Minted
This pool is locked tokens belonging to the step.finance presale investors that are subject to the vesting schedule set forth in the Step Tokenomics guide.
Token Metrics
As of December 2021
Max Supply: 630 106 792 STEP
Emission Period: Ended
Airdrops: 5 000 000 STEP
Team: 125 000 000 STEP
Team Lockup: Lockup over 2 years vested in 25% increments every 6 months.
Treasury: 57 495 135 STEP
Presale Investors: 117 800 000 STEP
Presale Lockup: 2 years vesting. 50% available after 1 year (31 March 2022), 50% available year 2 (31 March 2023).
Community & Ecosystem: 232 398 073 STEP
Already Emitted #STEP (2021 LP farming): 92,507,486 STEP
Token Type: SPL (Solana Native)
Start date for Vesting: 31 March 2021
Token Burn
On the 5th of October Step decided to burn a significant amount of supply (Approx 37%) as follows the metrics at that point in time were as follows:
- 50% of Team tokens yet to be emitted burned (75 000 000 STEP)
- 50% of Community Pool Emissions burned (232 398 073 STEP)
- 50% of Treasury burned (57 495 135) STEP
- 50% of Airdrop Supply burned (5 000 000 STEP)
- The total burned amount approximately 369 893 208 STEP
- This will bring Total Supply down to: 630 106 792 STEP
The burn ensures that given the current vesting periods for founder tokens and the slow issuance of new supply doesn't result in a situation where a small number of people end up with an overwhelming amount of supply, this would negatively impact the investability of STEP and therefore this burn better aligns with the tokenholders.
Burn Transaction:
Here for the Community, Treasury and Airdrop pools. Vested team tokens for vesting periods 3 and 4 arent minted yet so there is no burn transaction.
More information is available in our update blog here (https://stepfinance.medium.com/step-update-4-c3bc4d2a263a)