With the development capabilities of the Crescent team working as builders, Crescent will gradually take the shape and form that is best optimized for all users, beginning with the initial distribution at Genesis, which will be explained here. Fair and decentralized governance will be at the core of Crescent, with an equal opportunity for each user’s voice to be heard. Embracing the principles of decentralized finance, Crescent will maintain its primary focus on a platform built for and by its users.
CRE Token Functions
The CRE token is the governance token for all Crescent direction, in place to ensure the decentralized operation and evolution of the Crescent Hub. Upon genesis, CRE token will take on the following functions, which are also open for changes according to governance in the future:
- Voting on governance
- Staking rewards
- Ecosystem Incentives
Decentralized finance is at the core of Crescent, and equal and impartial governance through CRE token will ensure the participation of the community, and negate the imbalance of power to allow Crescent Hub’s constant evolution in a positive direction for all.
CRE Token Distribution
Initial Distribution at genesis will total 200 million CRE, under even distribution between airdrop (100M) and strategic reserve (100M).
The total airdrop amount for ATOM delegator is 100 million CRE. Among this, 50 million CRE is claimable upon launch of Crescent DEX (DEXdrop) which is at Crescent network launch. The remaining 50 million is distributed over a set period to ATOM delegators that use Crescent Boost (Boostdrop).
To alleviate the imbalance in governance, Crescent airdrop will adopt the quadratic drop system. Through this calculation, CRE airdrop quantity is determined in proportion to the square root of delegated ATOM balance of each address based on a snapshot taken 2022–01–01 00:00 UTC (Block #8902586). The amount of delegation to centralized exchange validators are excluded from eligible airdrop calculation. This will pursue equal participation in governance, negating the imbalance of power.
Additionally, users and supporters of Gravity DEX until the end of 2021 will be rewarded even more through the following multipliers:
- If participated in governance proposal #38 or #58, M1=2 if not M1=1
- If provided liquidity to Gravity DEX, M2=2, if not M2=1
- If used Gravity DEX, M3=2, if not M3=1
The Claimable Score for each address is calculated according to the amount of delegated ATOM, M1, M2, and M3, with the airdrop calculated as the following:
- During DEXdrop(Round 1), 50 million CRE is claimable immediately upon genesis. Each step of the drop will be unlocked through a task. Further information about Crescent DEXdrop can be found here.
- During Boostdrop(Round 2) 50 million CRE will be reserved for ATOM delegators with the same total amount of 1st round airdrop. The Boostdrop can be claimed incrementally over a set period of time by using Crescent Boost. The details on Boostdrop will be announced soon.
Strategic Reserve (50%)
100 million CRE is allocated to the strategic reserve. The aim for the strategic reserve is to boost the expansion and evolution of Crescent in ways that can benefit the network and its community. The strategic reserve can be used to secure key partnerships, at which the reserve CRE will be subject to a 3-year vesting period and vesting CREs are ineligibility to delegate or vote to prevent potential governance centralization. The allocation of this strategic reserve is controlled by the Crescent Foundation through a multi-sig wallet. 10 million CRE will be delegated at genesis to stabilize initial launching of the network, but will be undelegated when the total delegated amount by users except Foundation reaches 10 million.
1 billion CRE will be in circulation by year 10.
Ecosystem Incentive (53%)
The ecosystem incentive will make up 53%(530M), or the largest portion of the total CRE distributed. The majority will be distributed to users of the Crescent community. The initial designation for incentive is the Crescent’s first utility, the Crescent DEX. The first incentive will be distributed according to a set ratio for genesis parameters in designated pools. The parameters including pools eligible for incentives and distribution ratio will be defined according to governance.
As various products are introduced including an orderbook/AMM hybrid market, and Crescent Boost, the parameters for incentive distribution will naturally diversified. A portion of the ecosystem incentive is necessary for the adoption of market makers, who are critical to the orderbook market. An added incentive also needs to be in place for users of Crescent Boost, a key product of Crescent to use other functions. In the long-term, the vision for Crescent is for Boost to be the core function, so we believe the highest portion of incentives should be designated to Boost rewards. Crescent is an ever-evolving Hub, and future additions will also be eligible for incentives, and the incentive ratio for each product within the Ecosystem Incentive is subject to change to be best optimized for future direction.
Community Fund (2%)
A community fund of 20 million CRE will be allocated over time to be spent by the Crescent governance for future changes made to benefit Crescent and its users. The Crescent community will always be open for discussion and request for proposals to target areas of combined interest where the community fund can assist in positive developments.
Staking Reward (5%)
Validators and delegators are a crucial part of maintaining the network’s security. The total staking reward supply will be 50 million CRE. Reward distribution is proportional to the amount of CRE delegated with the exception of a set commission rate by the validator. As Crescent supports liquid staking, delegators can mint bCRE by liquid staking which can be utilized in other economic activities such as liquidity providing into bCRE/ATOM pool. Note that vested CRE cannot be delegated, hence, not eligible to receive staking rewards.
The tokens reserved for the team will be released gradually to total 20% of the entire CRE supply over 10 years. 200 million CRE will aid in the continuous development support by the team, as well as the recruiting of new talent to better service the expanded community.
The content of Crescent’s blog posts do not constitute investment advice. The information is for general informational purposes only, and should not be considered, a formal offer to sell or a solicitation of an offer to buy any security in any jurisdiction, legal advice, investment advice, or tax advice.
Crescent is still under development, and is subject to change. Please follow future blog posts and governance for the latest information at the time of reading.