At Soul, we believe that lasting value creation in DeFi depends on three non-negotiable principles: alignment of incentives, broad participation, and sustainable growth.

Our view is simple:

Protocols succeed when the users who contribute to their growth are the same stakeholders who benefit from their success.

Soul Protocol has been designed around this principle. Rather than layering speculative narratives on top of unsustainable mechanisms, we are building a foundation where economic value flows naturally from protocol adoption and usage and where ownership is broad, not concentrated.

The $SO token is the mechanism that enables this vision.

FIRST PRINCIPLES TO SHAPE TOKEN DESIGN

We do not view token design as a marketing exercise.

We view it as fundamental economic architecture.

Every decision around $SO, from its distribution model to its governance rights, to its role in value accrual, is grounded in three foundational beliefs:

• Incentives must align across users, contributors, and the protocol.

• Participation must be broad, open, and rewarded based on contribution.

• Value accrual must be tied to real, sustainable protocol activity.

These principles guided every aspect of $SO’s design.

// Soul’s Economic Vision

Soul's economic vision is focused on two main aspects:

1. Unifying Cross-Chain Liquidity

Soul Protocol is designed to unlock and unify liquidity across fragmented lending markets, enabling users to borrow assets on one chain while using collateral from another. By aggregating liquidity across integrated Money Markets, Soul transforms isolated opportunities into a cohesive, efficient, and accessible DeFi ecosystem.

2. Driving Sustainable Value Accrual

Soul’s economic model ensures that value generated through lending, borrowing, liquidations, and protocol activity flows back to the community. Through revenue sharing, buybacks, and staking rewards, $SO holders directly benefit from the growth of the protocol, creating a self-reinforcing cycle of participation, contribution, and long-term sustainability.

// Core utilities

$SO serves as the governance token of Soul Protocol, allowing holders to vote on key decisions, including the allocation of emissions across integrated Money Markets and the overall direction of the protocol.

Revenue Sharing and Buyback Mechanism

A portion of the protocol’s revenue is used to purchase $SO from the open market. These tokens are then redistributed to stakers and active participants as rewards, directly linking protocol activity with token utility.

Boosted Lending Positions

Users can stake $SO to boost their lending positions and unlock additional yields on top of the base APYs. This mechanism ties token demand directly to protocol usage and liquidity participation.

Gauges and Emissions Control

$SO holders control how emissions are distributed through gauges. This enables the community to direct incentives toward the most active or strategic markets within the protocol.

// Token Allocation and Unlocks

Soul’s token distribution is designed to support long-term sustainability, healthy distribution, and incentive alignment across all participants.

Every allocation decision reflects a commitment to transparency, decentralization, and responsible growth.

The $SO allocation is structured as follows:

Community Allocation — 25% (Public Sale)

The largest share of $SO is allocated directly to the community through the Public Sale. This ensures broad ownership and decentralization from day one.

All tokens distributed in the Public Sale will be fully unlocked at TGE, enabling immediate participation in the Soul ecosystem and providing all holders with influence in Governance. Soul is built by and for its community, and its future will be steered by them.

Foundation — 22%

Reserved to fund long-term development, protocol upgrades, security initiatives, and future strategic expansions.

The Foundation allocation ensures that Soul Protocol has the resources necessary to thrive and innovate sustainably over time.

Ecosystem Growth — 23%

Dedicated to growing Soul’s ecosystem through grants, partnerships, incentives, and integrations.

At launch, a portion of this allocation will be unlocked to support the onboarding of key projects, liquidity incentives, and initiatives that expand Soul’s presence across DeFi.

Core Contributors — 10%

Core Contributors, including current and future Soul Labs team members, are subject to a structured five-year vesting schedule. This includes a one-year initial lock-up period, followed by quarterly unlocks over the subsequent four years.

Pre-Seed Round— 8%

Allocated to early strategic partners and investors who provided critical support and expertise to bring Soul Protocol to life.

These tokens are subject to a structured vesting schedule, encouraging sustained collaboration and shared growth.

Liquidity Provision — 10%

Allocated to strengthen liquidity across multiple exchanges and provide market stability.

At launch, a portion of this allocation will be unlocked to support seamless access and healthy trading activity for $SO.

Advisors — 2%

Reserved for key advisors who offer strategic guidance, technical insights, and ecosystem connections.

Advisor tokens are subject to vesting schedules that promote a long-term commitment to Soul’s vision and mission.

The following chart outlines how the token supply expands over time across all allocations:

// Pre-Seed Investors

Soul Protocol is backed by a group of strategic investors who bring expertise, resources, and long-term support. These investors have partnered with Soul Protocol to help bring its vision to life while ensuring sustained growth and innovation.

$4 million has already been raised, with participation from TPC Ventures, X Ventures, Runtime Verification, as well as angels from Coinbase, LayerZero, Pi Squared, and others.

// Public Sale Structure

The Public Sale of $SO tokens is designed to create a community-backed and community-focused project, ensuring that our supporters are at the heart of the ecosystem.

• Allocation: 25% of the token supply will be offered directly to the community during this public sale.

• Open Model: The public sale will follow an open model. The final valuation will be determined at the end of the round based on the total amount raised, which will define the price per token.

• Public Sale Duration: The Public Sale will run for 10 days, starting on May 16 and closing on May 26.

• Fair Participation: There’s no maximum contribution limit — all community members who complete KYC can participate freely, with 100% of their $SO tokens fully unlocked at TGE.

Please note: Participation in the SO Public Round is restricted in the following jurisdictions:

Afghanistan, Barbados, Belarus, Burkina Faso, Burundi, Cameroon, Central African Republic, Congo (Democratic Republic of), Gibraltar, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Jamaica, Leb-anon, Libya, Mali, Mozambique, Myanmar (Bruma), Nicaragua, North Korea, Panama, Philippines, Russia, Senegal, Somalia, South Africa, Syria, Tanzania, Trinidad and Tobago, Tunisia, Uganda, Ukraine, United Arab Emirates, United States of America, Vanuatu, Venezuela, Vietnam, Yemen and Zimbabwe.

You can find a complete breakdown of allocation and vesting here:

// $SO Key Features

1. Sustainability: Tied directly to protocol revenue, ensuring organic growth.

2. Fair Distribution: The Majority of tokens are allocated to the public, fostering community ownership.

3. Utility-Driven: Designed with multiple use cases, creating long-term value for holders.

4. Scalable Growth: Built to align with the growth of Soul Protocol’s Total Value Locked TVL

Soul Protocol is built on the principle that sustainable decentralized finance requires aligned incentives, broad participation, and real value creation tied to protocol usage.

$SO serves as the mechanism that coordinates these forces, connecting governance, liquidity incentives, and protocol growth through a unified economic structure.

As Soul evolves, the strength of the token will be measured not by speculation, but by the depth of participation and the value creation across the protocol.

$SO Public Sale, beginning May 16th, offers an opportunity to take part in the foundation of what we believe can become a defining primitive for a new DeFi era that knows no borders.

We invite those who align with these principles to participate, contribute, and help shape the future of decentralized lending.