TRACER Tokenomics
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Last updated
Last updated
TRACER is an ERC-20 token with a pre-minted supply of 12.5 billion tokens. Key features include:
1% of CARROT minting commissions are used to buy and burn TRACER tokens. This mechanism reduces the circulating supply of TRACER over time, creating a deflationary pressure..
TRACER holders have voting rights within the TRACER DAO, influencing the direction of the CARROT-ecosystem. This allows the community to actively participate in shaping the future of the ecosystem.
The Token Distribution Strategy underlines that TRACER prioritizes long-term sustainability, community engagement, and organic growth over short-term gains. By allocating a significant portion of tokens to ecosystem growth and the treasury, the project aims to create a thriving and self-sustaining ecosystem that benefits all participants.
Ecosystem Growth (29%):
This significant allocation emphasizes the project's commitment to rewarding users and fostering a thriving ecosystem. It suggests a strong focus on incentivizing activities like staking, providing liquidity, and participating in community initiatives. This strategy aims to attract and retain users, driving adoption and organic growth.
Treasury (25%):
A robust treasury is crucial for long-term sustainability. These funds can be used to:
Ensure ongoing development: Finance upgrades, new features, and expansion of the TRACER ecosystem.
Support community initiatives: Fund grants, hackathons, and other programs that benefit the community.
Provide a safety net: Navigate unexpected market fluctuations or challenges.
Make strategic investments: Potentially invest in other projects or DeFi protocols to generate returns and further support TRACER's development.
Team and Advisory Board (17%):
This allocation incentivizes the core team and advisors, ensuring their commitment to the project's success. It aligns their interests with those of the community.
Early Backers (21%):
Rewarding early supporters acknowledges their crucial role in the project's initial stages and demonstrates appreciation for their trust and commitment.
TRACER Ltd (5%):
This allocation represents tokens held by the company that operates the project on behalf of the DAO for operational needs.
Private Sale (1%):
A small private sale demonstrates that the project didn't heavily rely on raising capital from private investors.
Public Sale (2%):
Similarly, a limited public sale indicates a focus on broader community involvement rather than maximizing initial fundraising.
TRACER's token release schedule is designed to encourage long-term commitment from the team and investors while promoting a stable and sustainable ecosystem.
One year cliff:
Team members and advisors are prohibited from selling any of their tokens for the first year. This incentivizes them to focus on building the project and achieving milestones.
36-month vesting:
After the one-year cliff, the tokens will be released linearly over 36 months. This ensures that the team and advisors remain committed to the project's long-term success.
10% vested at TGE:
The tokens held by Early Backers have a 10% vesting at the Token Generation Event (TGE).
90% vested over 36 months:
The remaining 90% of the tokens held by Early Backers will vest linearly over 36 months, aligning their interests with the project's long-term growth.
Released over 60 months:
The Treasury tokens are released gradually over a minimum of 60 months. This ensures a controlled and responsible use of funds, preventing sudden large-scale selling.
Released over 60 months:
Similar to the treasury, the tokens allocated for Ecosystem Growth are released gradually over 60 months. This ensures a consistent and sustainable flow of incentives for community participation and network growth.
10% vested at TGE:
The tokens held by Public Sale participants have a 10% vesting at the TGE.
90% vested over 36 months:
The remaining 90% will vest linearly over 36 months, encouraging long-term holding.
Released over 60 months:
Tokens held by TRACER Ltd are released gradually over 60 months. This aligns with the company's long-term vision and development plans, ensuring responsible token treasury management.
10% vested at TGE:
The tokens held by private sale participants have a 10% vesting of their tokens at the TGE.
90% vested over 12 months:
The remaining 90% will vest linearly over a period of 12 months. This reflects the high level of commitment from private investors.
This structured release schedule demonstrates TRACER's focus on long-term stability and responsible token distribution. By balancing immediate rewards with gradual vesting, the project aims to create a healthy and sustainable ecosystem for all stakeholders.
The distribution ensures that a significant portion of tokens is allocated to supporting the development and growth of the ecosystem, while also providing sufficient liquidity for trading and community participation.
This leads to the following potential maximum number of Tracer tokens in circulation:
This figure reflects the maximum possible tokens in circulation. Tokens allocated for Ecosystem Growth, the Treasury, and Tracer Ltd, representing 59% of the total supply, cannot be released before 60 months, with a maximum 20% of the allocation per year. However, this does not mean they must be released at that point. In reality, the circulating amount will likely be much lower, especially given the intrinsic buy-and-burn mechanism.
Since 1% of every CARROT token minted is used to buy and burn TRACER tokens, the amount of TRACER tokens in circulation will decrease over time.
This graph illustrates a potential scenario for the relationship between the CARROT market and the circulating supply of TRACER tokens.
The blue line indicates the maximum theoretical number of tokens in circulation
The green line indicates the projected amount of tokens in circulation because of the buy-and-burn mechanism.
The orange line represents the amount of tokens purchased and retired because of the buy-and-burn mechanism.
This chart is based on projections of the carbon removal credit market size, carbon credit prices, CARROT's market share, and the potential appreciation of TRACER tokens. The graph aims to visualize how the success of CARROT, measured by increased carbon removal activity and market adoption, can correlate with a decrease in the circulating supply of TRACER tokens due to the token's deflationary mechanism.
