Glimmer Token - Tokenomics
About Glimmer
The Utility Token of the Moonbeam Network
The primary deployment of Moonbeam is on the Polkadot network, with an associated token called Glimmer (GLMR).
Last Updated June 2, 2022. Provided additional details on liquidity program allocations and usage.
Glimmer Token Utility
As a decentralized smart contract platform, Moonbeam requires the Glimmer token to function. This token is central to the design of Moonbeam and cannot be removed without sacrificing essential functionality. Some of the uses of the Glimmer token on Moonbeam include:
- Supporting the gas metering of smart contract execution
- Incentivizing collators and powering the mechanics around the creation of a decentralized node infrastructure on which the platform can run
- Facilitating the on-chain governance mechanism including proposing referenda, electing council members, voting, etc
- Paying for transaction fees on the network
Genesis Token Allocation
When the Moonbeam network launched, the total supply of Glimmer tokens was one billion. A portion of the network tokens was reserved to ensure the network maintains a parachain slot on the Polkadot network. Significant portions of the network were also reserved for the Take Flight community token event (10%), the 2021 Moonbeam crowdloan (15%), and future parachain bond funding (3%).
Allocation | Amount | % | Description |
Seed Funding | 140,000,000 | 14% | Seed funding completed in September 2020. Subject to 24-month vesting schedule from network launch with a 3-month lock and equal vesting in months 3–24. |
Strategic Funding | 120,000,000 | 12% | Strategic funding completed in March 2021. Subject to 12-month vesting schedule from network launch with a 2-month lock and equal vesting in months 2–12. |
“Take Flight” Community Event | 98,211,164 | 9.8% | Take Flight completed in September 2021Go to https://moonbeam.network/take-flight-moonbeam-community-event page to completed in September 2021. Subject to a 40-day lock with no vesting schedule. Unused tokens have been reallocated to Long-term Protocol & Ecosystem Development.” |
2021 Moonbeam Crowdloan | 150,000,000 | 15% | 15% of the network is allocated to reward 2021 Moonbeam crowdloanGo to https://moonbeam.network/news/allocation-and-rewards-details-announced-for-the-moonbeam-crowdloan page to Moonbeam crowdloan contributors. 30% of tokens were distributed at network launch (when transfer and EVM were enabled), and the following 70% vest linearly on a block-by-block basis over the life of the lease (96 weeks). |
Parachain Bond Funding | 30,000,000 | 3% | Tokens under Foundation control to be used to pay for the DOTs required for the Moonbeam parachain slot in years 3-6. These payments may take the form of interest payments to borrow DOTs for the required parachain bond or rewards for crowdloan participants. These funds will act as a backstop to ensure that our parachain slot is funded for years 3-6. Unused funds can be used for other Foundation protocol adoption initiatives. |
Parachain Bond Reserve | 5,000,000 | 0.5% | Tokens for parachain bond purposes. 30% of the approx. 5% annual inflation (or 1.5% of total supply) will automatically flow into this fund to be used for parachain slot sustainability. See the transparency pageGo to https://moonbeam.foundation/glmr-transparency-commitment page to transparency page for more detail on the Foundation’s parachain sustainability plans. |
Treasury | 5,000,000 | 0.5% | Initial funds for the onchain treasury that can be used to fund public goods using onchain governance. 20% of spent network fees will automatically flow into this fund (the remaining 80% of spent fees are burned). |
Long-Term Protocol & Ecosystem Development | 166,770,536 | 16.7% | Tokens to be used by the Moonbeam Foundation for protocol development and other programs. See the transparency pageGo to https://moonbeam.foundation/glmr-transparency-commitment page to transparency page for more detail. |
Liquidity Programs | 50,000,000 | 5% | Tokens for liquidity programs to incentivize growth and adoption on Moonbeam. This allocation will help accelerate activity in the Moonbeam and ecosystem. Approximately 1.5% of genesis supply (30% of Liquidity Programs Allocation) planned to be used in Harvest Moon Program estimated to run Q2-Q3 2022.** |
Developer Adoption Program | 35,550,000 | 3.6% | Funds used as pre-launch incentives for developers and projects that were early Moonbeam adopters. Majority subject to vesting (2-year monthly linear vest). Unused tokens from the original 45 million GLMR allocation will be allocated to other community initiatives under “Long-Term Protocol & Ecosystem Development. |
Key Partners & Advisors | 39,468,300 | 3.9% | Reserved for strategic partners and advisors. Advisors are subject to a 24-month vesting schedule from network launch, with a 7-month lock and equal vesting in months 7–24. Strategic partners are subject to a 12-month vesting schedule from network launch, with a 2-month lock and equal vesting in months 2–12. Seed partners are subject to a 24-month vesting schedule from network launch, with a 3-month lock and equal vesting in months 3–24. |
PureStake Early Backers | 14,000,000 | 1.4% | Subject to 24-month vesting from network launch, with a 7-month lock and equal vesting in months 7–24. |
Founders and Early Employees | 100,000,000 | 10% | Founders and PureStake employees. Subject to a 4-year vesting schedule from network launch with a 1-year cliff and monthly vesting thereafter. |
Future Employee Incentives | 46,000,000 | 4.6% | Future employee token incentive pool. Future issues from this pool will be subject to a 4-year vesting schedule from network launch or grant date (whichever is later) with a 1-year cliff and monthly vesting thereafter. |
Inflation and Fee Model
The purpose of inflation in Moonbeam is to pay for ongoing security needs of the network. The primary security budget items are to pay for a parachain slot on an ongoing basis, and to incentivize collators to provide collation (block production) services to support the Moonbeam network. The system targets 5% annual inflation, with approximately 1% going towards incentivizing collators and approximately 1.5% going towards the parachain bond reserve to accumulate on chain funds to pay for a parachain slot in perpetuity. The remaining roughly 2.5% is for users that stake their GLMR tokens and helps power the collator selection process. Inflationary token emissions can vary over time based on changes to parachain block times, network conditions, variances in relay chain performance, runtime bugs, and other factors.
Fees on Moonbeam related to transactions and smart contract execution are handled in two ways. 80% of the spent fees are burned, which acts as a deflationary force and accrues value to existing GLMR holders based on increased utilization of the network. 20% of the spent fees go to the on chain treasury which can be allocated via onchain governance to projects and initiatives which further adoption and engagement with the network.
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