Fair distribution builds trust and prevents concentration risk. The allocation balances community rewards, team incentives, and operational needs while maintaining long-term sustainability.
Overview
The Dwarves+ Protocol token distribution plan outlines the strategic allocation of both ICY and DFG tokens to ensure sustainable growth, community development, and long-term protocol success. This document details the distribution mechanisms, vesting schedules, and allocation rationales.
Distribution philosophy
Core principles
- Community first: Majority allocation to community and contributors
- Long-term alignment: Vesting schedules that encourage sustained participation
- Fair distribution: Equitable access for different stakeholder groups
- Growth incentives: Allocations that drive protocol adoption and development
- Transparency: Clear and public distribution mechanisms
Strategic objectives
- Decentralization: Prevent concentration of token ownership
- Incentive alignment: Reward value creation and long-term commitment
- Liquidity provision: Ensure adequate token liquidity for healthy markets
- Community building: Foster strong, engaged community of contributors
- Sustainable growth: Support protocol development and expansion
ICY token distribution
Total supply management
- Initial supply: 100,000,000 ICY (100M)
- Maximum supply: 1,000,000,000 ICY (1B) - hard cap
- Dynamic issuance: 2-5% annual inflation based on protocol metrics
- Burn mechanisms: Regular token burns to maintain supply balance
ICY token distribution visualization
pie title ICY Token Distribution (100M Initial Supply)
"Community Rewards Pool" : 50
"Treasury Reserve" : 20
"Development Team" : 15
"Liquidity Provision" : 10
"Public Distribution" : 5
Primary distribution categories
1. Community rewards pool (50% - 50M ICY)
Purpose: Incentivize ongoing contributions and community participation
flowchart LR
CommunityPool[Community Rewards Pool<br/>50M ICY] --> Research[Research & Development<br/>20M ICY - 40%]
CommunityPool --> Community[Community Building<br/>12.5M ICY - 25%]
CommunityPool --> Quality[Quality Assurance<br/>10M ICY - 20%]
CommunityPool --> Partnership[Partnership Development<br/>5M ICY - 10%]
CommunityPool --> Governance[Governance Participation<br/>2.5M ICY - 5%]
%% Distribution Timeline
Research --> Month1[Months 1-6<br/>3.3M ICY]
Research --> Month2[Months 7-18<br/>10M ICY]
Research --> Month3[Months 19-36<br/>6.7M ICY]
classDef pool fill:#E6F3FF,stroke:#0066CC,stroke-width:2px
classDef category fill:#F0F8F0,stroke:#009900,stroke-width:1px
classDef timeline fill:#FFF0E6,stroke:#FF8000,stroke-width:1px
class CommunityPool pool
class Research,Community,Quality,Partnership,Governance category
class Month1,Month2,Month3 timeline
Allocation breakdown:
- Research & development: 20M ICY (40% of rewards)
- Community building: 12.5M ICY (25% of rewards)
- Quality assurance: 10M ICY (20% of rewards)
- Partnership development: 5M ICY (10% of rewards)
- Governance participation: 2.5M ICY (5% of rewards)
Distribution schedule:
- Month 1-6: 8.3M ICY (16.6% of rewards pool)
- Month 7-18: 25M ICY (50% of rewards pool)
- Month 19-36: 16.7M ICY (33.4% of rewards pool)
Eligibility requirements:
- Identity verification for rewards >100 ICY/month
- Minimum 30-day protocol participation
- Quality score above protocol threshold
- Compliance with community guidelines
2. Development team (15% - 15M ICY)
Purpose: Compensate core development team and early contributors
Team categories:
- Core developers: 8M ICY (53% of team allocation)
- Protocol architects: 3M ICY (20% of team allocation)
- Community managers: 2M ICY (13% of team allocation)
- Advisors: 2M ICY (14% of team allocation)
Vesting schedule:
- Cliff period: 6 months from token launch
- Vesting duration: 36 months linear vesting
- Monthly release: 347,222 ICY per month after cliff
- Early contributor bonus: 25% bonus for pre-launch contributors
3. Treasury reserve (20% - 20M ICY)
Purpose: Protocol development, partnerships, and strategic initiatives
Reserve categories:
- Development fund: 8M ICY (40% of treasury)
- Partnership fund: 5M ICY (25% of treasury)
- Marketing fund: 4M ICY (20% of treasury)
- Emergency fund: 3M ICY (15% of treasury)
Release schedule:
- Immediate: 5M ICY for launch activities
- Year 1: 6M ICY for growth initiatives
- Year 2: 5M ICY for scaling operations
- Year 3: 4M ICY for sustainability programs
4. Liquidity provision (10% - 10M ICY)
Purpose: Ensure token liquidity and market stability
Liquidity allocation:
- DEX liquidity: 6M ICY (60% of liquidity allocation)
- Market making: 2M ICY (20% of liquidity allocation)
- Liquidity incentives: 2M ICY (20% of liquidity allocation)
Deployment schedule:
- Launch: 4M ICY for initial liquidity
- Month 3: 2M ICY for additional pairs
- Month 6: 2M ICY for expanded liquidity
- Month 12: 2M ICY for Base network liquidity
5. Public distribution (5% - 5M ICY)
Purpose: Public access and broader community participation
Distribution methods:
- Community sale: 2M ICY (40% of public allocation)
- Airdrops: 1.5M ICY (30% of public allocation)
- Bounty programs: 1M ICY (20% of public allocation)
- Community events: 0.5M ICY (10% of public allocation)
Timeline:
- Pre-launch: Community sale (2M ICY)
- Launch: Initial airdrop (0.5M ICY)
- Months 1-6: Bounty programs (1M ICY)
- Ongoing: Community events (1.5M ICY over 2 years)
DFG token distribution
DFG token distribution visualization
pie title DFG Token Distribution (1M Fixed Supply)
"Community Treasury" : 25
"Core Team" : 20
"Public Distribution" : 20
"Early Contributors" : 15
"Liquidity Provision" : 10
"Strategic Partners" : 10
Total supply: 1,000,000 DFG (Fixed Supply)
Distribution categories
1. Core team (20% - 200K DFG)
Purpose: Align core team with long-term protocol success
Team allocation:
- Founders: 80K DFG (40% of team allocation)
- Core developers: 60K DFG (30% of team allocation)
- Key contributors: 40K DFG (20% of team allocation)
- Advisors: 20K DFG (10% of team allocation)
Vesting schedule:
- Cliff period: 12 months from token generation
- Vesting duration: 48 months linear vesting
- Monthly release: 4,167 DFG per month after cliff
- Acceleration clauses: Performance-based acceleration for milestones
2. Early contributors (15% - 150K DFG)
Purpose: Reward early protocol contributors and supporters
Contributor categories:
- Pre-launch contributors: 75K DFG (50% of early allocation)
- Beta testers: 30K DFG (20% of early allocation)
- Community leaders: 30K DFG (20% of early allocation)
- Strategic advisors: 15K DFG (10% of early allocation)
Vesting schedule:
- Cliff period: 6 months from token generation
- Vesting duration: 24 months linear vesting
- Monthly release: 6,250 DFG per month after cliff
- Merit bonuses: Additional allocations for exceptional contributions
3. Community treasury (25% - 250K DFG)
Purpose: Community-controlled allocation for protocol development
Treasury categories:
- Contributor incentives: 100K DFG (40% of treasury)
- Partnership development: 50K DFG (20% of treasury)
- Research grants: 50K DFG (20% of treasury)
- Community programs: 30K DFG (12% of treasury)
- Emergency reserve: 20K DFG (8% of treasury)
Release mechanism:
- Governance control: All releases require governance approval
- Quarterly reviews: Regular assessment of treasury usage
- Proposal system: Community proposals for treasury allocation
- Transparency: Public reporting of all treasury activities
4. Liquidity provision (10% - 100K DFG)
Purpose: Provide DFG liquidity for governance participation
Liquidity strategy:
- DEX liquidity: 60K DFG (60% of liquidity allocation)
- Lending protocols: 20K DFG (20% of liquidity allocation)
- Market making: 20K DFG (20% of liquidity allocation)
Deployment schedule:
- Launch: 40K DFG for initial liquidity
- Month 3: 20K DFG for additional pairs
- Month 6: 20K DFG for expanded liquidity
- Month 12: 20K DFG for Base network liquidity
5. Public distribution (20% - 200K DFG)
Purpose: Broader community access and market adoption
Distribution methods:
- Community sale: 100K DFG (50% of public allocation)
- Airdrops: 60K DFG (30% of public allocation)
- Bounty programs: 40K DFG (20% of public allocation)
Timeline:
- Initial launch: Community sale (100K DFG)
- Month 3: Targeted airdrop (30K DFG)
- Months 6-12: Bounty programs (40K DFG)
- Ongoing: Community events and contests (70K DFG over 2 years)
6. Strategic partners (10% - 100K DFG)
Purpose: Incentivize key partnerships and ecosystem integrations
Partner categories:
- Technology partners: 40K DFG (40% of partner allocation)
- Research partners: 30K DFG (30% of partner allocation)
- Ecosystem partners: 30K DFG (30% of partner allocation)
Vesting schedule:
- Cliff period: 6 months from agreement signing
- Vesting duration: 24 months linear vesting
- Monthly release: 4,167 DFG per month after cliff
- Performance clauses: Linked to partnership milestones and value delivery
Vesting and lockup mechanisms
Overview of vesting schedules
| Stakeholder Group | Token Type | Allocation | Cliff Period | Vesting Duration | Monthly Release |
|---|---|---|---|---|---|
| Core Team | ICY | 15M ICY | 6 months | 36 months | 347,222 ICY |
| Core Team | DFG | 200K DFG | 12 months | 48 months | 4,167 DFG |
| Early Contributors | ICY | 50M ICY | 0 months | Dynamic | Dynamic |
| Early Contributors | DFG | 150K DFG | 6 months | 24 months | 6,250 DFG |
| Strategic Partners | DFG | 100K DFG | 6 months | 24 months | 4,167 DFG |
Detailed vesting schedules
Core team ICY vesting
- Total allocation: 15,000,000 ICY
- Cliff: 6 months
- Vesting: 36 months linear after cliff
- Monthly release: (15,000,000 / 36) = 416,667 ICY
Core team DFG vesting
- Total allocation: 200,000 DFG
- Cliff: 12 months
- Vesting: 48 months linear after cliff
- Monthly release: (200,000 / 48) = 4,167 DFG
Early contributors DFG vesting
- Total allocation: 150,000 DFG
- Cliff: 6 months
- Vesting: 24 months linear after cliff
- Monthly release: (150,000 / 24) = 6,250 DFG
Strategic partners DFG vesting
- Total allocation: 100,000 DFG
- Cliff: 6 months
- Vesting: 24 months linear after cliff
- Monthly release: (100,000 / 24) = 4,167 DFG
Lockup mechanisms
- Staked ICY: 6 or 12-month lockup for DFG conversion
- Staked DFG: 12-month lockup for dividend share and 2x voting weight
- Liquidity pool tokens: 12-month initial lockup for seed liquidity
Governance and transparency
Decentralized decision-making
- Proposal review: Community scrutiny of all token releases
- Voting: DFG holders approve or reject release proposals
- Multi-signature: All major releases require multi-sig approval
Transparency and reporting
- Public dashboard: Real-time view of all token allocations and releases
- Audit reports: Regular third-party audits of distribution smart contracts
- On-chain verification: All transactions verifiable on Base chain
Risk mitigation
Market manipulation prevention
- Gradual release: Prevents large market dumps
- Vesting schedules: Aligns incentives with long-term protocol health
- Liquidity depth: Reduces price impact of large trades
Compliance and legal considerations
- Regulatory review: Ongoing legal assessment of distribution methods
- Jurisdictional analysis: Ensure compliance with target markets
- KYC/AML: Implement as required for certain distribution events
Conclusion
The Dwarves+ Protocol token distribution plan is meticulously designed to foster a sustainable, decentralized, and community-driven ecosystem. By aligning incentives through thoughtful allocations and transparent vesting, we aim to build long-term value and ensure the protocol's success.
