Posted by Ambire Wallet on 14 December, 2022
The WALLET token turns 1 year soon which means that according to the Ambire Wallet whitepaper, it's annual early users supply will be cut to 4%, dramatically reducing inflation as the adoption grows.
WALLET turns 1
Officially, the TGE(token generation event) of the WALLET token took place on January 29th 2022 when WALLET was listed on Huobi. However, as Ambire Wallet launched in Beta in December 2021, early Ambire users started accruing WALLET tokens from December 16th 2021. So, yes, WALLET has birthday on Friday 🎂
$WALLET was launched on Ethereum as an ERC20 token for the community of Ambire Wallet and it will also function as the governance token for the Ambire Wallet, through the WalletDAO that is being progressively rolled out.
In addition to its governance utility, the token is also used to reward Ambire Wallet users. The first example of such rewards is the early user continuous airdrop that has been live since the Ambire Wallet launch in December of last year.
Reduced supply instead of birthday cake 🎂
The WALLET token has a very clear path to distribution and adoption, documented in the Ambire Wallet whitepaper. An important pillar of the token distribution is the early users continuous airdrop:
30% of all WALLET will be distributed as a form of user acquisition tool to encourage users to use the various services provided by Ambire: in the first 4 years, all users would get WALLET tokens based on the proportion of their digital asset value held in their wallet account over the TVL of the Wallet as a form of liquidity mining program; there would be extra bonuses, such as a multiplier if you moved these funds from a different wallet in the first year.
Breakdown of the early user distribution, expressed in percentage of the total supply:
- 7.5% distributed over the first year
- 4% for every following year (12% total)
- 10.5% for other incentives (check whitepaper)
7.5% of the WALLET token was distributed to all users who held more than $1000 worth of funds in their Ambire wallets since December 16th 2021. Now that WALLET turns 1, the token supply will be programatically reduced to 4% annual. This is very good news for the WALLET holders as the WALLET inflation rate is dropping sharply. Let's find out why.
Less WALLET <> More value for WALLET
7.5% of the WALLET token was distributed to early users for the first year at peak inflation point of 14.4%. The more WALLET is minted, the more inflation. However, with less WALLET to be minted, the rate of inflation declines in time.
16 December 2022 is an important point in the WALLET distribution timeline, as the token annual early users distribution will be programmatically set to only 4% for 2023. This is almost a "halving" for the WALLET token and marks a sharp decline in the inflation rate of the token (check the chart).
Eventually, one day when all WALLET is minted, the token could become deflationary as tokens will be removed from circulation (e.g. different burn mechanisms), but new tokens won't be minted. This will only increase the scarcity of the WALLET token.
Find out more about the WALLET token, early rewards program, staking mechanism and other details on our help center.
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