VELO Token Distribution Update - May 2023
Velo has continued to drive its commitments to build our Web3+ ecosystem during the first half of this year and has delivered several exciting foundation products, as committed. We revisited our tokenomics and updated the circulating supply.
Velo has continued to drive its commitments to build our Web3+ ecosystem during the first half of this year and has delivered a number of exciting foundation products already, as committed earlier! So far, we’ve completed the following milestone achievements:
Still on the horizon for this year is:
There are several key macroeconomic factors that occur in 2023 such as the US Federal Reserve increasing interest rates, the uncertainty over the health of US financial institutions and the conflict between Russia and Ukraine. Overall crypto market seems to be negatively affected by these factors and thus have also had an impact on $VELO. However, we are still very much committed to our product roadmap and long-term product development.
With the introduction of the $USDV stablecoin also came some exciting new utilities for the $VELO token. One of the critical aspects of this updated tokenomics is the function of $VELO in the minting of $USDV and additional collateralization in the Treasury Reserve. Our fiat on/off-ramp service also requires using $VELO as a form of loan to ensure that any fiat currency transactions are collateralized as we await the completion of settlement processes. The launch of Universe and the minting of $USDV has meant that our current circulating supply is insignificant to support the ecosystem's operation. With the expansion of OTC services, we’ve revisited the $VELO token distribution to support healthy ecosystem growth and operation.
After careful consideration of our immediate needs to support the current Universe and ecosystem launch plan, we’ll be updating our circulating supply to 7,390,475,595.6. Depending on the adoption of $USDV token-related trading activities, which is expected to grow exponentially in the coming months, we forecast that a further release will be required to avoid strain on the treasury function and ongoing ecosystem growth. This release is added to the previously provided vested tokens to investors and early project supporters. The second circulating supply update release date will depend on the over ecosystem growth and observations of the efficiency of the treasury function to avoid a catastrophic impact on our Web3+ architecture operation.
Ultimately, while the increase may seem substantial, it is a move in a positive direction for ecosystem development and a healthy token supply. API tracks our circulating supply figures with CoinMarketCap and CoinGecko and indicates tokens we do not have direct control over (i.e., released from our treasury wallets).
For more information, visit velo.org and join Velo Labs communities to support our Web 3+ movement.