Updated September 30, 2022
The Moonbeam Foundation (“Foundation”) is committed to the longevity, development, and security of the Moonbeam network. We recognize that transparency is core to the sustainable success of the network. As part of this commitment to transparency, we are providing the community the following information on the Foundation’s token holdings, token actions to date and token supply.
Foundation Objectives & Statement of Use
The Moonbeam Foundation uses tokens under the Foundation control to help ensure the following three immediate strategic goals: (i) parachain sustainability, (ii) security and protocol development, and (iii) grants and ecosystem development.
(i) Parachain sustainability: the Foundation uses tokens from the “Parachain Bond Funding” and the “Parachain Bond Reserve” allocations to help ensure that Moonbeam maintains its parachain slot on the Polkadot network. Ultimately, the Moonbeam network needs to secure enough DOT to remain in a parachain slot in perpetuity. Multiple strategies will be employed by the Foundation to assist the Moonbeam network to achieve this DOT accumulation goal including, but not limited to, community token events to borrow DOT, deposits into and use of Moonbeam-based defi protocols, and potential liquidations of tokens for DOT. The next Moonbeam parachain slot auction is scheduled for October 2023. Any liquidations of GLMR for DOT will conform to the Foundation’s structured selling guidelines below.
(ii) Security and protocol development: the Foundation uses tokens from the “Long-Term Protocol & Ecosystem Development” allocation for a variety of initiatives that help ensure network security and that help drive the network’s long-term utility. These include supporting security audits, core protocol development, integration and testing of parachains and remote chains, infrastructure related test and integration environments, public RPC endpoint services, block explorers, developer support, education, and documentation. The Foundation encourages teams that can provide these kinds of services to apply via the Grant Program or through the Treasury.
(iii) Grants and ecosystem development: in addition to the “Developer Adoption” program designated as pre-launch incentives for early Moonbeam adopters, the Foundation also uses tokens from the “Long-Term Protocol & Ecosystem Development” and the “Liquidity Programs” allocations to attract cutting-edge teams and builders to Moonbeam through cash or token grants, competitions, incentive programs, and more recently, ecosystem investment funds. Through the end of July, the Foundation has already disbursed approx. 9.5M GLMR from the Liquidity Programs allocation and 3.7M GLMR from the Developer Adoption allocation as token grants, jointly funded the Arrington Moonbeam Growth Fund with Arrington Capital to fuel further network adoption (Long-Term Protocol & Ecosystem Development allocation), and disbursed $2.2M as fiat and stablecoin grants to selected projects and teams. Selection for these initiatives is based upon a myriad of factors including the team’s technical capabilities, their product innovation, and community engagement.
In order to achieve these stated objectives:
- The Foundation may re-balance Foundation-controlled accounts from time to time, creating new addresses or removing old addresses. Any update to account addresses will be reflected below in order to ensure transparency.
- The Foundation may liquidate GLMR from time to time, when expenses cannot be paid in GLMR. A prime example would be liquidating GLMR in order to accumulate DOT for parachain sustainability purposes as described above. When undertaking these activities the Foundation will strictly adhere to the following Structured Selling Guidelines:
- The seller only makes offers above market price, and doesn’t sell into bids.
- Daily sales remain materially below a fixed amount set based on medium term volumes, and with the constraint of remaining below 5% of estimated real market volume on any given day.
Genesis Addresses Under Foundation Control
The Foundation has published below the non-circulating and circulating genesis* addresses of the tokens held under Foundation control for the community to monitor.
Non-Circulating Genesis Addresses:
*This account was not a genesis address but was subsequently added to the list above to maintain reporting transparency.
Circulating Genesis Addresses:
Protocol Controlled Addresses
Crowdloan Pallet Funds:
State of GLMR Supply as of July 31, 2022
Circulating Supply: 334.8M
Total Supply: 1,029M
Gross Inflation: 29.2M
Net Inflation: 29.1M
Burnt Fees: 95k
As of July 31, 2022, total GLMR supply was 1.029B, consisting of 1B genesis supply and 29.1M cumulative net inflation (defined as newly minted inflationary GLMR less burned transaction fees). Cumulative gross inflation totaled 29.2M through 7/31/22, reflecting a 2.92% increase over genesis supply of 1B. Actual gross inflation through the end of July was slightly below the pro-rated 5% annual inflation rate target mainly due to average block times exceeding the 12-second assumption used to support this target.
Since the launch of the network, approximately 20.4M tokens have been minted and distributed to collators and delegators in the form of inflationary protocol rewards consistent with GLMR’s inflation model. Collators and delegators are integral to the security and sustained operation of the network and, as such, earn a proportionate share of the supply’s 5% target annual inflation rate for their network contributions (approximately 20% and 50%, respectively).
To ensure long-term parachain sustainability, a portion of Moonbeam supply inflation (30% of total supply) is also designated to the parachain bond reserve to ultimately secure a Polkadot parachain slot in perpetuity. The parachain bond reserve has grown by approximately 8.8M GLMR to 13.8M GLMR since the launch of the network via its proportionate share of supply inflation.
In line with GLMR’s token economic model, approximately 80% of transaction fees related to smart contract execution are burned and removed from token supply. It’s worth noting that cumulative burnt fees don’t precisely match the 80% targeted proportion due to imprecise fee calculations in earlier Moonbeam releases, resulting in the issuance of additional rewards to collators instead of these GLMR being burned. The overall increase to supply was 51.2k GLMR (0.0051% of genesis supply), which was more than offset by the lower amount of inflation attributable to slower block times (mentioned above). The other 20% of transaction fees are allocated to the community on-chain treasury. As of July 31st, 2022, 36.6M GLMR have been allocated to the treasury through its proportionate share of transaction fees.
Approximately 32.5% of total GLMR supply has been released into circulation as of July 31st, 2022, which is further detailed in the following sections.
- Circulating Supply: all tokens that are held in accounts outside of the non-circulating Moonbeam Foundation and protocol-controlled addresses listed above
- Circulating supply includes circulating accounts under Moonbeam Foundation control (listed above) such as collator and other operational accounts that were classified within the Long-Term Protocol and Ecosystem Development allocation. The combined total genesis balance of these accounts was released into circulating supply at network launch.
- Total Supply: the number of tokens that are (i) circulating, (ii) under the Moonbeam Foundation control, (iii) under the Protocol Control
Tokens Released Into Circulation
Historical Token Release Since Network Launch(1)(2)
- Token release schedules are approximate and subject to change. Please refer to https://moonbeam.foundation/glimmer-token/ for information on token allocations and please see the information below for further detail on the release of tokens.
- Forecast token releases for allocations are not included in the figures above. As such, only historical activity is presented from network launch through 7/31/22 for the selected allocations in the chart.
The release of GLMR into circulation from select non-circulating genesis allocations is reported on a cumulative basis since network launch. Subsequent updates to the Transparency Page will include reporting for the subject six-month period in addition to cumulatively.
Cumulative GLMR Released thru 7/31
|Crowdloan 2021||70.1 million|
|Take Flight||98.2 million|
|Developer Adoption Program||3.7 million|
|Liquidity Programs||9.5 million|
|Long-Term Protocol & Ecosystem Development||45.9 million|
|Seed Funding||25.5 million|
|Strategic Funding||54.5 million|
|Key Partners & Advisors||6.9 million|
|Treasury (on-chain community treasury)||45 thousand|
- Crowdloan 2021: 150M GLMR was allocated to the Moonbeam 2021 Crowdloan, of which 30% was distributed at network launch (when transfers and EVM were enabled) and the remaining 70% continues to vest linearly over the 96 weeks of the parachain lease. Through July 31, 2022, over 70M GLMR rewards have been claimed by crowdloan participants
- Take Flight: The 98.2M GLMR tokens that were allocated to community members during the Take Flight token event (September 2021) were disbursed in full to participants on February 20, 2022.
- Developer Adoption Program: Cumulatively through the end of July 2022, the Foundation has distributed 3.7M GLMR from this allocation as grants to 18 project teams as contractual milestones have been achieved. Of note, the majority of grants are subject to 24-month linear vesting schedules beginning on the date of milestone achievement and, therefore, will be released gradually over the two year vesting horizon (rather than as a single disbursement). Notable projects deployed on the Moonbeam network who have received GLMR grants are included in the list on the Moonbeam Foundation’s Grants Program page. It’s worth noting that in addition to the 3.7M GLMR distributed from the Developer Adoption allocation, the Moonbeam Foundation has disbursed an incremental $2.2M from its cash and stablecoin reserves in the form of fiat/stablecoin grants to 30 teams and developers building on the Moonbeam protocol.
- Liquidity Programs: Approx. 20% of the 50M total Liquidity allocation has been distributed in the form of liquidity grants and incentives to spark DeFi activity on Moonbeam and to attract the next wave of cross-chain connected applications to the network. The majority of funds were released in conjunction with the Harvest Moon Campaign, which was paused on 8/3/22 in light of the third-party Nomad bridge hack taking place. The Foundation continues to evaluate the situation and will determine when (if ever) may be an acceptable time to restart the campaign in the future or will reallocate designated Harvest Moon funds as appropriate.
- Long-Term Protocol & Ecosystem Development: As of the end of July 2022, the Foundation has disbursed 45.9M GLMR from the designated Long-Term Protocol & Ecosystem development allocation. The majority of spend was contributed to the Arrington Moonbeam Growth Fund as well as loaned to liquidity providers in conjunction with liquidity & treasury management services for the Foundation. Three Arrows Capital (3AC), a firm who has recently declared bankruptcy, was one of multiple service providers that the Foundation engaged for such management services. Other Long-Term Protocol & Ecosystem Development funds were used in support of community and ecosystem engagement such as funding the ambassador and collator programs, expanding the team of advisors, and to cover marketing and other network operational expenses.
- Seed Funding: The 140M Seed Investor allocation was subject to an initial 3-month lock-up with equal unlocks in months 3-24. The first distribution took place on April 11, 2022 and through the end of July, 25.5M GLMR has been distributed to Seed Investors. Distributions will continue monthly per the defined vesting and unlock terms.
- Strategic Funding: The 120M Strategic Investor allocation was subject to an initial 2-month lock-up with equal unlocks in months 2-12. The first distribution took place on March 11, 2022 and through the end of July 2022, 54.5M GLMR has been distributed to Strategic Investors. Distributions will continue monthly per the defined unlock terms.
- Key Partners & Advisors: The approx. 39.5M allocation consists of advisor and partner allocations that are subject to various unlock terms. Seed partners were subject to an initial 3-month lock-up with equal unlocks in months 3-24. Strategic partners were subject to an initial 2-month lock-up with equal unlocks in months 2-12. Most advisors were subject to an initial 7-month lock-up with equal unlocks in months 7-24. As of July 31, 2022, 6.9M GLMR was distributed to partners and advisors. Distributions will continue monthly per the defined unlock terms.
- Treasury: The network’s first treasury proposal in the amount of 45,454 GLMR was awarded on June 17, 2022, which is visible as Proposal #0 on the Subscan blockexplorer. The ~45k GLMR was awarded to ZKValidator for the production of an event and education series focused on promoting the development of privacy technology within the Moonbeam ecosystem (additional details are provided on Polkassembly).