With our launch on Polygon, we had an influx of new users joining the Unipilot community. As one of the most common questions we’ve received from these new users relates to tokenomics, we decided to put together an article with all the key info. Here it is!
- We launched the PILOT token on Uniswap in July 2021, with a total supply of 20m tokens, and ~7.5% of supply in circulation. The rest is locked in vesting contracts.
- In October 2021 we launched the PILOT burn program. With this, we started to burn PILOT tokens each quarter as they are unlocked from the vesting contract. This scheme is designed to benefit our community of token holders.
- At time of writing, we have burned nearly half of the total supply, which now stands at 10.6m. Meanwhile, the circulating supply is 1.19m. Check our Coingecko page for the latest stats.
- Overall, the scheme will lead to 78% of the total supply being burned, leaving only 4.4m tokens. These 4.4m tokens will not necessarily ever enter circulating supply as we are keen to limit inflation.
- In June 2022 we launched staking. This allows holders to stake the PILOT token on the Unipilot dApp to earn a share of protocol revenue, paid in ETH.
- Note that these rewards are not inflationary. The Unipilot protocol takes a cut of all fees earned on the protocol, with 40% of this revenue being paid to PILOT stakers. The other 60% is used to cover protocol expenses, helping us to limit PILOT inflation, and to add additional liquidity to Unipilot. Protocol-owned liquidity currently stands at ~$170,000 (Zapper.fi).
- When we launched staking we also ended yield farming. This means the token has strong utility and minimal inflation to dilute holders.
As we expand to additional networks and add support for more DEXs, staking rewards are set to grow in-line with rising TVL. This allows our community to benefit from the success of Unipilot.