OAK Token

OAK Network Token (OAK)

OAK is a utility token with an initial supply of 1 billion, which will be minted in the genesis block at launch

Network Transactions

Powers network transaction fees and extrinsics execution

Automation Fees

Dynamic fees adjust to prioritize tasks and reduce congestion

Collator Staking

Operates and secures the network while rewarding token holders

Governance

Empowers token holders to democratically determine the direction of the network

Community DAO

Deploys a well-resourced, sovereign DAO to build, experiment, and more

Developer Incentives

Accelerates DApp and other ecosystem initiatives with grants and bounties

OAK Tokenomics

OAK is a utility token with an initial supply of 1 billion, which will be minted in the genesis block at launch

Symbol

OAK

Relay Chain

Polkadot

Initial Total Supply

1 Billion

Inflation

Long-term Supply

Deflationary

Burn Mechanism

Gas & Fee Instant Burning

OAK Distribution

Figure 1: Categories of OAK Network token distribution

Seed Round

To compensate the seed investors of the early development of the OAK Network.

Allocation: 18.0%

Vesting Period: 24 months; to be distributed in five distributions of 20% at 12, 15, 18, 21, and 24 months from launch

Team

To incentivize the direct contractual workforce of the OAK Network.

Allocation: 15.0%

Vesting Period: 45 months; subject to a 1 year cliff following the Token Distribution Event upon which tokens shall begin to be delivered then twelve equal distributions of 8%

Pre-launch Round

To raise any additional funds required to develop the OAK Network and provide full automation functionality.

Allocation: 8.0%

Vesting Period: 24 months; 20% to be distributed at month 6, 20% at month 12 and the remaining 60% distributed evenly (15%) every quarter in the 2nd year

Public Offering

To distribute OAK tokens to customers, retail investors, and any others who aim to use and contribute to OAK's ecosystem.

Allocation: 5.0%

Vesting Period: 12 months; to be distributed evenly (8.33%) every month for the first 12 months

Developer Incentives

To boost project and platform adoption among developers through a variety of programs such as open grants, bug bounties, and hackathons.

Allocation: 9.0%

Vesting Period: 48 months; 25% to be minted one month after the Token Distribution Event, and the remainder minted in equal portions each month through the 48th month

Community Growth

To drive ecosystem growth in 3 pillars: Communication, Marketing, and Community. Initiatives include Ambassador, KOL, meetups, etc.

Allocation: 8.5%

Vesting Period: 48 months; 25% to be minted one month after the Token Distribution Event, and the remainder minted in equal portions each month through the 48th month

Strategic Partnerships

To provide free trials for partners, such as trading firms and exchanges, as well as to create initial liquidity pools for cross-chain asset transfer.

Allocation: 8.0%

Vesting Period: 48 months; 25% to be minted one month after the Token Distribution Event, and the remainder minted in equal portions each month through the 48th month

Crowdloan Rewards

To provide community OAK rewards to secure a parachain slot on Polkadot.

Allocation: 1.5%

Vesting Period: 24 months; 12.5% to be minted one month after the Token Distribution Event, and the remainder minted in equal portions each quarter in 24 months

Future Parachain Reserve

To be reserved for winning future parachain slots on Polkadot.

Allocation: 3.0%

Vesting Period: 20 months; to be minted and distributed evenly (20%) at the 4th, 8th, 12th,16th and 20th months

Ecosystem Reserve

To be used at the discretion of the OAK Network Team and token holders for future funding operations, business expansion, mergers and acquisitions, etc.

Allocation: 24.0%

Vesting Period: to be determined; vesting will not begin in the first 24 months after the Token Distribution Event, and the vesting period will last at least 36 months

Circulating Supply Curve

The above vesting schedules correspond to the following OAK circulating supply curve

OAK Token Release Schedule

Figure 2: OAK token distribution schedule and circulating supply curve

Token Inflation

Inflation is subject to a fixed 5% inflation rate divided into 3 components:

1% is used for collator rewards

2.5% is used for staking rewards

1.5% is used for future parachain slots

This inflationary force will be constant throughout the duration of the network’s life apart from the first 2 months from OAK the Token Distribution Event. Additionally, it will be counterbalanced through burning of transaction fees which are expected to result in the token becoming slightly deflationary over time.

Due to OAK Network onboarding collators over the first 2 months after the Token Distribution Event, staking and collator rewards will not be granted. Therefore, inflation will not be activated for the first 2 months from OAK's the Token Distribution Event.

OAK Staking Rate of Return as a Function of Time

Figure 3: OAK Staking rates of return based on the assumption that 40% of vested tokens are staked. The Token Distribution Event will occur after network launch.