TL;DR. We’re implementing a series of updates that reinforce our commitment to a transparent, sustainable, and community-driven ecosystem. This update outlines the main changes to our tokenomics, community incentives, and products.

Tokenomics Redesign

In this streamlined tokenomics we simplify our distribution strategy, minimize team-controlled allocations, and concentrate limited resources on community rewards. Key changes include:

50% Supply Burn

We are burning nearly 95% of team-controlled tokens across Ecosystem and Grants, Community, Reserve, and Advisors allocations. This burn, which amounts to 50% of the total supply, significantly reduces the token’s supply and eliminates any future claims by the team on these tokens.

Revised Community Allocation

4% of the total supply will be allocated strictly to community incentives, distributed as follows:

Staking Rewards: 1%
L3 Score Rewards: 1%
Quests and Special Events: 2%

With this adjustment, the ecosystem rewards will directly benefit active participants. Moving forward, the team will only receive tokens through its work on the TG mini-app v2, based on revenue generated through performance rather than pre-allocated holdings*.

*Since launch, the team has not sold any tokens and has no plans to do so in the future.

Staking and ETH Rewards

The new staking mechanism allows Onchain holders to earn ETH rewards, derived from fees collected across the ecosystem. The rewards system is structured as follows:

ETH Rewards

Staking rewards are calculated based on the number of staking points, which depend on both the amount and the duration of staking. Each staking season runs on a one-month basis, with rewards issued at the season's end.

$Onchain Rewards

For the first two staking seasons, we will distribute $onchain tokens in addition to ETH rewards. This distribution is proportional to the staking points earned, providing stakers with both ETH and token-based rewards.

L3 Score: Airdrop for Early Adopters and Start of Season 2

There will be a special airdrop for early adopters of the L3 Score. The snapshot was taken on November 11, 2024. Tokens will be distributed in line with engagement level and the number of earned points. With this airdrop, we’d like to acknowledge the active contributors who have helped shape the Onchain ecosystem.

Once rewards for the first season of L3 Score are distributed, Season 2 begins. The new season will feature expanded reward options, offering users a structured opportunity to earn and advance within the ecosystem.

Telegram Mini-App V2

The Chain Game is being transformed to better serve the community and support promising projects. The updated app will enable teams to engage directly with our 6 million-strong audience.

Engagement for Projects

Projects allocate a certain amount of $onchain tokens in the App’s prize pool and promote their products/channels/airdrops by incentivizing user actions through paid tasks. This approach provides a direct and efficient means to connect with a large, targeted audience.

Rewards for Users

Users who engage with partners’ tasks are rewarded in $onchain tokens, creating a mutually beneficial model that drives ecosystem engagement. At its previous state, Chain Game has reached over 2 million daily active users, with 6m unique users in total. The updated mini-app will be launching with our partner project to scale this engagement further.

We aim to establish the V2 app as a valuable tool for both projects and users to connect and benefit from each other.

Mini-App V2 ETA — Dec 1

NFT Quests

In the near future, we're launching NFT quests that are open for everyone to participate. Mint free NFTs, collect them, and solve the puzzles to earn $Onchain rewards. Onchain City holders, you’re already one step ahead!

Now, let’s keep creating, connecting, and building onchain.