Amulet Tokenomics: Token Distribution and Initial Total Supply

Amulet Protocol, a DeFi insurance and yield platform built primarily on Solana, has launched its governance token AMU to power decentralized decision-making and liquidity alignment across multiple chains.

As the first protocol blending investment and insurance in the Web3 ecosystem, Amulet aims to create safe yield environments for DeFi participants while giving the community control through veAMU governance. With its multi-chain deployment across Solana, Ethereum, Optimism, and Polygon zkEVM, the AMU token is designed to anchor both governance and incentive alignment.

The structure of AMU’s distribution, vesting, and initial supply reflects a carefully planned approach to long-term sustainability and ecosystem growth.

Key Takeaways

• AMU has an initial total supply of 1 billion tokens across four supported chains.
• Around 60% of the supply is reserved for business incentives, ecosystem expansion, and the protocol’s risk fund.
• veAMU governance empowers token holders to vote on yield strategies and incentive allocations.
• The token launched in January 2024 and is backed by investors including Solana Ventures and Animoca Brands.
• Technical indicators show consolidation near $0.00015–$0.00028 with low volume, suggesting accumulation ahead of new growth cycles.

What Is Amulet?

Amulet started as Solana’s first DeFi insurance protocol in early 2022, offering coverage for yield-generating assets. The project evolved into Amulet V2, transforming into a yield + protection ecosystem that combines income generation with built-in risk management.

Its mission is to provide safe, risk-adjusted returns for DeFi users while expanding to multiple ecosystems beyond Solana. The team envisions Amulet as a platform where users can earn yields securely — knowing that every position is backed by an embedded protection layer.

AMU serves as the governance and incentive token for this new phase, aligning users, liquidity providers, and ecosystem developers.

Read Also: What is Tokenomics

AMU Token Overview

• Token Name: Amulet (AMU)
• Total Supply: 1,000,000,000 AMU
• Circulating Supply: 441,930,898 AMU
• Market Cap: $122,000
• FDV: $276,000
• Chains: Solana, Optimism, Ethereum, Polygon zkEVM
• Launch Date: January 11, 2024
• Contract Addresses:
  
   
  • Optimism: 0x5C0Ea461FE5E6f3b4f90a071E72243C14C6abfd7
  • Ethereum: 0x174c47d6a4e548ed2b7d369dc0ffb2e60a6ac0f8
  • Polygon zkEVM: 0xd507361174a0fde521bf8c097ef19dd31ffca710
  • Solana: AMUwxPsqWSd1fbCGzWsrRKDcNoduuWMkdR38qPdit8G8

Amulet Token Distribution

Amulet’s token distribution focuses on long-term growth, sustainable liquidity, and community engagement. The total AMU supply of 1 billion tokens is divided across several key categories, each serving a specific role in the protocol’s expansion and stability.

• Seed Round (12%) Allocated to early investors who supported Amulet’s foundation. Ten percent unlocked at the token generation event (TGE), followed by a six-month cliff and linear vesting over three years.
• Private Round (8%) Distributed to strategic investors under the same vesting schedule as the seed round. Ensures long-term alignment and prevents sudden market sell pressure.
• Team and Advisors (15%) Designed to reward core contributors and long-term advisors. Only 5% unlocked at TGE, with a six-month cliff and three-year linear vesting. Encourages continued development and active participation.
• Exchange Liquidity Provision (5%) Reserved for listing support on centralized and decentralized exchanges. These tokens are released gradually based on exchange schedules to ensure market depth and stability.
• DAO Reserves (15%) Dedicated to strategic partnerships, liquidity expansion, marketing, and future protocol development. Controlled by the DAO to support long-term ecosystem health.
• Protocol Risk Fund (20%) Locked to bootstrap the platform’s insurance and protection vaults. Ensures Amulet maintains sufficient reserves to secure user deposits and guarantee loss protection.
• Business and Community Incentives (25%) Used for liquidity mining, staking rewards, loyalty programs, and community airdrops. This allocation fuels ecosystem activity and incentivizes participation from users and partners.

In total, around 60% of the AMU supply is directly aimed at ecosystem expansion, user incentives, and sustainable liquidity — ensuring that the token remains utility-driven rather than purely speculative.

This balanced approach highlights Amulet’s focus on security, transparency, and long-term value creation for every stakeholder involved in the protocol.

veAMU Governance and Incentives

The veAMU model (vote-escrowed AMU) is central to Amulet’s decentralized governance. Token holders can lock AMU to mint veAMU, which grants them voting power and higher yields in proportion to their lock duration.

This mechanism incentivizes long-term alignment while enabling the community to decide:

• Where liquidity mining rewards should go
• Which pools or vaults receive priority incentives
• Adjustments to fee distribution and protocol yield parameters

Through veAMU, Amulet transitions from team-led management to community-driven governance, empowering holders to shape both policy and growth direction.

Technical Analysis: Can AMU Reclaim Momentum?

The daily chart shows that AMU has been in a prolonged consolidation phase since August, with minimal volume and flat technical structure.

Bollinger Bands

Current price at $0.0001482 sits between the mid-band at $0.0002279 and the lower band near $0.000102. The tight band squeeze suggests low volatility — typically a precursor to an expansion phase.

RSI (Relative Strength Index)

The RSI reading of 39.2 indicates mild bearishness but also potential oversold conditions. Any move above 45–50 could hint at renewed buying activity.

MACD (Moving Average Convergence Divergence)

The MACD line is just below zero, with the histogram nearly flat. This points to equilibrium between buyers and sellers, signaling that a breakout could occur once liquidity returns.

Volume and Price Action

Trading volume remains extremely low (less than $1 daily), which reflects limited market participation. However, for early-stage governance tokens, this pattern often precedes community-driven catalysts like staking, governance launches, or exchange listings.

If Amulet’s DAO activation gains traction or liquidity incentives restart, AMU could revisit $0.0003–$0.0005 in the short term. A sustained break above the $0.0006 mark would confirm reversal momentum.

Long-Term Token Utility and Value Proposition

AMU’s value depends on its role as the core governance and incentive token of Amulet’s yield protection ecosystem. Beyond speculative use, AMU grants real utility:

• Governance voting through veAMU.
• Liquidity mining and yield amplification rewards.
• Alignment of liquidity incentives with risk-adjusted performance.
• Fee distribution rights from insurance and yield vaults.

Over the long run, as more assets are covered through Amulet’s protection products, AMU demand may increase naturally through governance participation and staking lockups.

However, the protocol must first achieve meaningful TVL (total value locked) growth to justify higher token valuations.

Price Outlook for 2025

• Bullish Case: If Amulet expands adoption across Ethereum L2s and successfully launches veAMU governance incentives, AMU could recover toward $0.001–$0.002, reflecting renewed liquidity.
• Neutral Case: The token trades between $0.00015–$0.00035, maintaining its range while staking adoption grows gradually.
• Bearish Case: Prolonged inactivity or low participation may push AMU back near $0.0001, especially if new incentive programs stall.

Overall, Amulet’s tokenomics provides the structure for sustainable growth, but execution and user engagement will determine its true value.

Final Thoughts

Amulet Protocol’s AMU tokenomics represents a thoughtful balance between governance utility, ecosystem funding, and user rewards. With 1 billion total supply and a multi-chain presence, AMU’s success depends on its ability to drive participation through veAMU and business incentives.

The combination of risk-adjusted yield, governance empowerment, and cross-chain insurance integration makes Amulet a unique project in the DeFi insurance sector. As the platform matures and liquidity incentives expand, AMU could gradually recover from its post-launch lows and re-establish itself as a long-term governance asset for DeFi safety and sustainability.

Read Also: 0G Token Tokenomics Explained

FAQs

What is Amulet Protocol?

Amulet is a Web3 platform combining investment and insurance, offering users yield opportunities with built-in risk protection.

What is the total supply of AMU?

Amulet’s total supply is capped at 1 billion AMU, distributed across Solana, Optimism, Ethereum, and Polygon zkEVM.

What is veAMU?

veAMU is a vote-escrowed version of AMU that gives holders governance rights and access to boosted yields based on lock duration.

How is the AMU token distributed?

About 60% of AMU’s supply supports incentives, ecosystem growth, and risk vaults, while the rest funds team, investors, and liquidity.

What is the current price of AMU?

As of now, AMU trades near $0.00028, up 39% this month, but still down over 99% from its all-time high in May 2024.