Updated January 31, 2023
The Moonbeam Foundation (“Foundation”) is committed to the longevity, development, and security of the Moonriver 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 “Community Initiatives and Parachain Slot Reserve” allocation and the “Parachain Bond Reserve” allocation to help ensure that Moonriver maintains its parachain slot on the Kusama network. On January 26th, 2023, Moonriver won the 67th Kusama auction for lease period 28-34. The Moonbeam Foundation was able to self-fund this slot extension once again (similar to the renewal last year) and looks forward to another lease term as a Kusama parachain. Notably, this was a bid for a partial lease period (28-34, excluding period 27) which allowed for continued operation without overlap, but also means the new lease period is a slightly shorter 42-week lease. The new lease will expire at block 21,167,999, around December 2023.
(ii) Security and protocol development: the Foundation uses tokens from the “Long-Term Network Stewardship and Adoption” allocation for a variety of initiatives that help ensure network security and that help drive the protocol’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, etc. 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: the Foundation uses tokens from the “Developer Adoption Program”, “Community Initiatives and Parachain Slot Reserve” and the “Long-Term Network and Stewardship & Adoption” allocations to continue to attract cutting-edge teams and builders to Moonriver through cash or token grants, competitions, and programs. In addition, the Foundation assists in ecosystem development by supporting teams with grants and through user-adoption initiatives. Selection for these initiatives are based upon a myriad of factors including the team’s technical capabilities, their product innovation, and market sentiment.
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 MOVR from time to time, when expenses cannot be paid in MOVR. A prime example would be liquidating MOVR in order to accumulate KSM 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
State of MOVR Supply as of January 31, 2023
Circulating Supply: 6,194k
Total Supply: 10,652k
Gross Inflation: 663k
Net Inflation: 652k
Burnt Fees: 12k
As of January 31, 2023, total MOVR supply was 10.7M, consisting of 10M genesis supply and 652k cumulative net inflation (defined as newly minted MOVR less burned transaction fees). Cumulative gross inflation since network launch totaled 663k through period end, reflecting a 6.63% increase over genesis supply of 10M. Actual gross inflation for the last twelve months ended January 31, 2023 was 4.1%, which was below the annual inflation rate target of 5% primarily due to average block times exceeding the 12-second assumption used to support this target. From early February through mid-May 2022, in particular, average block times rose by ~70% (source: Moonscan) due to an underlying relay chain issue (more technical detail is provided here). However, improvement was observed in May with the release of the Kusama v0.9.20 and v0.9.21 upgrades as block times returned to more normalized levels.
Since the launch of the network, approximately 465k MOVR tokens have been minted and distributed to collators and delegators in the form of inflationary protocol rewards consistent with MOVR’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 (20% and 50%, respectively).
To ensure long-term parachain sustainability, a portion of MOVR supply inflation (30% of total) is also designated to the parachain bond reserve to ultimately secure a Kusama parachain slot in perpetuity. The parachain bond reserve has grown by approximately 199k MOVR to 249k MOVR since the launch of the network via its proportionate share of supply inflation.
In line with MOVR’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 Moonriver releases, resulting in the issuance of additional rewards to collators instead of these MOVR being burned. The overall increase to supply was 2.6k MOVR (0.026% 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-controlled treasury. As of January 31st, 2023, 3.4k MOVR have been sent to the treasury through its proportionate share of transaction fees.
Approximately 58% of total MOVR supply has been released into circulation as of January 31st, 2023, which is further detailed in the sections below.
- Circulating Supply: all tokens that are held in accounts outside of the non-circulating Moonbeam addresses 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 Network Stewardship & Adoption 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/moonriver-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 1/31/23 for the selected allocations in the chart.
The release of MOVR into circulation from select non-circulating genesis allocations is reported on a cumulative basis since network launch as well as for the subject 6-month reporting period. Going forward, updates to the transparency pages will continue to be bi-annual.
MOVR Net Released 8/1/22-1/31/23
Cumulative Net MOVR Released at 1/31/23
|Crowdloan 2021||0||3.0 million|
|Developer Adoption Program||22 thousand||315 thousand|
|Community Initiatives & Parachain Slot Reserve||345 thousand||907 thousand|
|Long-Term Network Stewardship & Adoption||745 thousand||1.5 million|
|Treasury (Community-controlled)||6 thousand||6 thousand|
- Crowdloan 2021: 3M MOVR was allocated to the Moonriver 2021 Crowdloan, of which 30% was distributed at network launch (when transfers and EVM were enabled) and the remaining 70% vested linearly over the 48 weeks of the parachain lease. Crowdloan rewards became fully vested in March 2022. Of the 3M total vested, an estimated 101k MOVR remained unclaimed as of 1/31/23.
- Long-Term Network Stewardship & Adoption: As of January 31, 2023, there is approximately 928 thousand MOVR remaining in the Long-Term Network Stewardship & Adoption allocation. Disbursements from this allocation are used to fund overall operational expenses for the Moonriver and Moonbeam networks. Specifically, a cumulative total of 1.2 million MOVR has been transferred to a third party provider for liquidation under the structured selling guidelines outlined above. Sales proceeds have been used to build operational cash reserves to cover future expenses and to fund fiat and stablecoin grants, daily operations, and other network expenses. Other Long-Term Network Stewardship & Adoption funds were used in support of network operations and ecosystem engagement as well as loaned to liquidity providers in conjunction with liquidity & treasury management services. It’s worth nothing that Long-Term Network Stewardship & Adoption tokens funded the initial bonding requirements for the Orbiter Program totaling ~9k. In support of this program, the Foundation also operates one of its Long-term Network Stewardship non-circulating addresses as a network delegator. This account earned delegation rewards of 10.3k MOVR during the 6-month period, which were sent to the community-governed Treasury for the benefit of the overall network. Since the delegating account is non-circulating, all earned rewards effectively remain in non-circulating supply upon receipt. Delegation rewards earned by this account will continue to be swept to the Treasury on an ongoing basis.
- Developer Adoption Program: Cumulatively, the Foundation has distributed approx. 315k MOVR from this allocation as grants to 30 teams and developers building on Moonriver as their contractual milestones have been achieved. Projects deployed on the Moonriver network who have received MOVR grants are included in the list on the Moonbeam Foundation’s Grants Program page. It’s worth noting that in addition to the 315k MOVR distributed from the Developer Adoption allocation, the Moonbeam Foundation has disbursed an incremental $1M from its cash and stablecoin reserves in the form of fiat/stablecoin grants to 30 teams building on the Moonriver protocol.
- Community Initiatives and Parachain Slot Reserve: 4M MOVR was allocated for community initiatives, liquidity programs and a parachain slot reserve. As mentioned in previous updates, approximately 20k MOVR was liquidated from this allocation to acquire KSM, which has been used to self-fund the past two parachain slot renewals. Since network launch, 907k MOVR has been released with approx. 735k disbursed as liquidity grants from March 2022 through January 2023 to fuel additional defi activity on Moonriver.
- Treasury: In January 2023, Moonriver’s first treasury proposals were awarded to Nova Wallet for integrating support of ERC-20 tokens (in the amount of 1.4k MOVR) and to Onfinality for high performance infrastructure services provided to the network (~4.7k MOVR total). These awards are visible as Treasury Proposals in the Subscan block explorer with further details provided on Polkassembly. The Foundation also operates one of its non-circulating addresses as a network delegator in support of the Orbiter Program. This account has earned delegation rewards and will continue to do so going forward in conjunction with the program. Since the delegating account is non-circulating, all earned rewards effectively remain in non-circulating supply and are sent to the Treasury. As such, inflows to the Treasury will exceed the designated 20% share of transaction fees going forward. Through January 31, 2023, 10.8k MOVR rewards earned via this delegation account were swept to the Treasury.