Sanctum $CLOUD Tokenomics Overview and Vesting Schedule

Sanctum, a decentralized ecosystem built on the Ethereum blockchain, recently launched its governance token, CLOUD. In this article, we’ll explore the details of CLOUD token distribution, vesting schedules, and the strategic vision behind it.

Key Takeaways:

1. Token Distribution Breakdown: The CLOUD token has a total fixed supply of 1 billion tokens. Significant allocations include 18% for launch liquidity, 30% for the community reserve, and 25% for the team allocation, with strategic reserves and investor allocations also defined.
2. Vesting Schedule Details: Tokens for team members, investors, and advisors vest over three years, starting with a one-year cliff where only 33% of tokens are initially accessible, followed by linear vesting over the subsequent 24 months.
3. Transparent Launch Strategy: Sanctum opted for a transparent launch via Jupiter's LFG launchpad, promoting fairness and equal opportunity. This approach contrasts with exclusive private sales, emphasizing community involvement and decentralization.

Tokenomics Overview

Source

• Total Supply: Sanctum has minted a fixed supply of 1 billion $CLOUD tokens.
• Launch Liquidity (18%): At launch, 18% of the total supply was made available. Of this, 10% was distributed in the initial airdrop, while the remaining 8% was allocated for liquidity seeding in the LFG launch pool.
• Community Reserve (30%): The community reserve is governed by the community itself. It will be used for future airdrops, staking rewards, grants, and other community-driven initiatives.
• Strategic Reserve (13%): This portion is earmarked for growing the Sanctum ecosystem. It includes allocations for acquihires, partnerships, and ecosystem development.
• Team (25%): The team and core contributors hold 25% of the tokens. These tokens vest over a 3-year period, with a 1-year cliff.
• Investors (13%): Sanctum sold 13% of the tokens to investors during the private sale.
• Jupiter LFG (1%): Reserved for Jupiter LFG, a key player in the launch process.

Read more: How to Set Up a Liquid Staking Token (LST) in Sanctum: A Step-by-Step Guide

Token Vesting Schedule

A vesting schedule determines how tokens are distributed over time. It ensures that team members, advisors, and investors receive their tokens gradually rather than all at once. This approach promotes long-term commitment and prevents sudden sell-offs that could harm the project.

• 1-Year Cliff: After the token generation event (TGE), 33% of the total supply unlocks. This means that team members and investors won’t have immediate access to their tokens. The cliff period allows the project to establish stability and demonstrate progress.
• Linear Vesting: Over the next 24 months (2 years), the remaining 66% of tokens vest linearly. This gradual release ensures that participants stay aligned with the project’s goals. Investors and team members receive a portion of their tokens each month, reducing the risk of sudden market impact.
• Full Vesting: After 36 months (3 years) from the TGE, all team and investor tokens will be fully vested. At this point, participants have complete ownership of their tokens. This extended vesting period encourages commitment and discourages short-term speculation.

Read more: Understanding Infinity Vault: The Next Big Thing in Liquid Staking Tokens

Transparent Launch

Sanctum’s approach to token distribution is refreshingly transparent. Here’s how the launch unfolded:

• Jupiter’s LFG Launchpad: Sanctum chose Jupiter’s LFG launchpad for its public token launch. Unlike closed-door private sales, LFG ensures equal opportunities for everyone, regardless of connections or wealth. The launch started at a valuation of $50 million, aligning with the seed round price. This approach democratizes participation, allowing retail investors to join on equal footing with early backers.
• Fair Distribution: Sanctum’s commitment to fairness extends beyond buzzwords. By leveraging LFG, they avoided the pitfalls of exclusive allocations and insider deals. The community witnessed the entire process, from liquidity seeding to token distribution.
• Community Involvement: The community reserve empowers token holders to shape Sanctum’s future. Whether through governance proposals, staking, or ecosystem grants, the community plays an active role.
• Decentralization: Sanctum’s transparent launch reinforces the project’s core tenets of decentralization. By avoiding centralized exchanges and private sales, they set a precedent for other DeFi projects.

Conclusion

Sanctum’s $CLOUD tokenomics reflect a thoughtful approach to fostering community governance and long-term project sustainability. By prioritizing transparency in token distribution and vesting, Sanctum aligns with decentralized principles, empowering stakeholders while mitigating short-term market pressures.

Frequently Asked Questions (FAQ)

1. What is $CLOUD?

$CLOUD is the governance token for Sanctum, a decentralized finance (DeFi) project. It empowers token holders to participate in decision-making and shape the project’s future.

2. How many $CLOUD tokens exist?

The total supply of $CLOUD tokens is 1 billion.

3. How was $CLOUD distributed?

• Launch Liquidity (18%): 10% via the initial airdrop, 8% for liquidity seeding.
• Community Reserve (30%): Governed by the community.
• Strategic Reserve (13%): For ecosystem growth.
• Team (25%): Allocated to founders and contributors.
• Investors (13%): Sold during the private sale.
• Jupiter LFG (1%): Reserved for Jupiter LFG.

4. What is the Transparent Launch?

Sanctum’s Transparent Launch via Jupiter’s LFG ensures fairness. It started at a $50 million valuation, allowing equal participation for retail investors. The entire process was visible to the community.

5. Why is transparency important?

Transparency fosters trust, decentralization, and community involvement. Sanctum’s approach sets a new standard for DeFi projects.