OPTIM Tokenomics
The OPTIM token powers the Optim ecosystem and is an essential part of decentralizing the protocol, distributing decision making, and aligning the incentives of its various participants.
The Optim protocol is controlled by the Optim DAO (ODAO) through OPTIM token voting. The decisions voted on by the ODAO are executed by Optim Labs at the direction of the Optim Foundation. Following TGE, in order to make ODAO proposals and participate in voting, one needs to hold OPTIM.
OPTIM is a Cardano native token with a set supply of 100M.
OPTIM holders are entitled to several rights and benefits, with the two primary being:
1. The right to formulate and cast votes on governance decisions
2. Potential fee sharing of Optim protocol revenue if ODAO initiates fee switch
Other utility is planned for the OPTIM token, further detailed in this article.
Below is a chart outlining the allocation of OPTIM tokens.
Each category and corresponding vesting schedules are also detailed.
Public — 40% | Public Treasury — 11% | ODAO Treasury — 5%
Sale — 15% | Team — 25% | Market Making — 4% |
ODAO Controlled Tokens
- Public (40%)
Purpose:
These tokens are allocated to protocol participants in the form of emissions. They are also allocated to the public through other means such as the potential ILE.Wide distribution enables broad protocol participation and decentralization of Optim.
Emissions thus far are limited to Liquidity Bond LPs. Future emissions and emission rates are dynamic, in control of the ODAO, and will likely increase with protocol expansion.
Vesting:
If ODAO approved, ILE emissions would be 8% and vest immediately to participants.
Approximately .55% have been committed to Liquidity Bond participants to date. The token emissions of closed bonds will be available immediately after the token generation event and upon bond close for the remaining to-date bond emissions.
These tokens are on a dynamic emissions schedule controlled by the ODAO.
- POL (Protocol Owned Liquidity) (11%)
Purpose:
Optim’s ODAO will control protocol owned liquidity in the form of Optim <> ADA DEX LP tokens, future product LP tokens, and ADA. The revenue from protocol owned liquidity isn’t all necessarily accrued to the ODAO in the case of a fee switch.
Vesting:
If ODAO approved, 3% will vest immediately to the ODAO Treasury via ILE.
These tokens are allocated to the OPTIM side of OPTIM <> ADA LP position on DEX.
The remaining 8% is reserved to pair with future 80/20 OPTIM <> ADA pool and/or other OPTIM uses for POL that the ODAO sees fit and approves
- ODAO Treasury (5%)
Purpose:
The ODAO Treasury is for ODAO operations and provides the means for an incentive system to help facilitate ongoing participation and contributions by ODAO members.
These tokens are
Vesting:
Dynamic emissions based on ODAO needs, contributions, and votes on vesting.
2% of 5% Total Allocation (100,000 OPTIM) vesting at TGE pending ODAO approval.
- Market Making (4%)
Purpose:
Reserved to facilitate market making on centralized exchanges if the OPTIM lists on centralized exchanges. If this does not occur by the end of year 2026 the ODAO will vote to allocate these tokens to another category or burn.
Vesting:
Unknown. Subject to ODAO vote
Team Controlled Tokens
- Sale (15%)
Purpose:
Sale tokens are used to bootstrap operations via sales to professional non-US investors. Thus far 10.88% of 15% has been sold to professional VCs.
Vesting: *Pending ODAO Vote approval
— 8,689,524 OPTIM (8.69% Total Supply)
2 Month Cliff from Initial Liquidity Event (i.e no tokens to VCs for 2 months)
Months 3, 4 ,5, 6 — 1,000,000 OPTIM (1%) per month
Months 7 through 27 — 223,311 OPTIM (.22%) per month
— 2,190,476 OPTIM (2.19% Total Supply) *Alameda Research Tokens
2 Month Cliff from Initial Liquidity Event
10 year linear vesting after cliff
Months 3 through 123 — 18,253 OPTIM (.018%) per month
*If owner does not come forward in timely manner to claim tokens, and if an expiry date on claims can be established by legal counsel, all 2.19% of Alameda supply will be burned
- Team (25%)
Purpose:
To reward and incentivize the core team and contributors who have worked on and continue to work on the protocol.
Vesting: *Pending ODAO Vote approval
10.5% of the 25% of tokens allocated to the team have been allocated thus far.
Team earning and vesting will occur in a continuous series of tranches. Each tranche is a period of time during which the team earns tokens. The tokens from the previous tranche vest during the following earning period. Each earning and vesting period is 20 months in duration.
*There was an earning period freeze during September & October 2023 due to TGE delay. The second earning period/ first vesting period thus begins November 2023
Team Earning Period 1 — January 2022 through August 2023 (20 months)
Tokens Earned — 10.5%
Vesting — 3 month cliff (i.e vesting begins February 2024)
17 month linear (Feb 2024 through June 2025)
Team Earning Period 2 — November 2023 through June 2025 (20 months)
Tokens Earned — 6%
Vesting — 20 month linear (July 2025 through February 2027)
Team Earning Period 3 — 20 months from July 2025 through February 2027
Tokens Earned — 4%
Vesting — 20 month linear (March 2027 through October 2028)
Future team earning periods to follow with continually decreasing token allocations until 25% is met.
