After much anticipation, we’re excited to unveil the revamped tokenomics and airdrop plan.
Table of contents:
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Elys Network Journey
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Updated Tokenomics Breakdown
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Updated Airdrop Details
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Reward Center Overview
Elys Network Journey
A Quick Recap:
Elys Network was built with one simple goal: to fix DeFi.
We’ve created an environment where:
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Impermanent loss is no longer a concern, allowing liquidity providers to embrace volatility in their pools and utilize stablecoins without fear.
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Rewards are distributed in USDC, empowering users with immediate reinvestment potential using stable, accessible funds.
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A fair tokenomics system eliminates systemic risks by maintaining the ELYS token outside of the pool while offering a wide range of utilities.
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A user-friendly, all-in-one application that caters to both beginners and seasoned DeFi experts.
Above all, our product works on Day 1—no gimmicks, no unnecessary buzzwords—just a system that delivers results.
Two Years of Evolution:
Since the creation of Elys Network:
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Our team has grown significantly.
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The market is showing renewed strength.
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The blockchain industry has matured.
It was crucial to listen to our community and adapt to the ever-changing landscape.
This is why we’ve reworked our tokenomics to better align with your needs and today’s market dynamics.
The ELYS token:
The ELYS token plays a critical role in our ecosystem, acting as the primary vehicle for distributing rewards across the platform.
ELYS tokens accrue fees & rewards from:
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Transaction fees.
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Spot trading fees.
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Perpetual trading fees.
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Additional incentives via EDEN and EDEN-Boost.
Updated Tokenomics Breakdown:
Revamped Tokenomics Overview:
Changes:
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Marketing & Growth (9%) and Airdrop (5%) → Combined into Airdrop Only (14%), distributed over two years.
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Strategic Reserve (22.3%) → Split into:
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Strategic Reserve (12%)
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Decentralization (5.3%)
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Liquidity (5%)
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Key Allocations:
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22.3% Strategic Reserve: Decomposed in Decentralization (5.3%), Liquidity(5%) and Strategic Reserve(12%), used to bolster long term sustainability of the treasury and help aid diversification via fundraising & OTC efforts. It will also be used for partner-specific grants, who can add long term value to the Elys Network. It will also be used to provide liquidity on CEX,via POL on Elys DEX and staked to decentralize the network at genesis.
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18% Project Contributors: Reserved for core contributors to development and growth.
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15% LM Rewards: Liquidity Mining Rewards to help jump-start the Elys ecosystem. These are temporary and meant to simply bootstrap the liquidity and support non-inflationary revenue sources.
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14% Airdrop: A gesture of gratitude towards early adopters and engaged users, this allocation is designed to stimulate early network activity and foster loyalty. It will be used over a 2-year period to continually boost our growth and reward our users.
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13.4% Public and Private Sales: Reserved for early investors and network supporters, facilitating the platform’s initial growth and expansion.
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8.5% Staking Rewards: Encourages token holders to actively stake their ELYS tokens, promoting network security and governance participation while rewarding users for their commitment.
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7.5% Community Fund: This includes payouts for DAO councils and for community initiatives & projects. Receiving funds from this pool will follow defined governance and approval processes.
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1.3% Advisors: Acknowledging the valuable guidance of advisors who bring industry expertise and strategic insights to ensure Elys Network’s success.
Emission schedule & Token supply:
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Initial supply: 20,429,204 ELYS
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Max supply: 200,000,000 ELYS
Our Updated Airdrop Details
Previous Version (5% of Total Supply)
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5% of Total Supply: 10M ELYS Tokens
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Initial Airdrop: 6.3M distributed across Testnet, Mainnet, Cosmos Stakers, and the Community Program (Majors, Brigadiers, Cadets).
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1,008,000 ELYS for Cosmos Stakers
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4,284,000 ELYS for Testnet, Mainnet, and Cadets
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1,008,000 ELYS for Majors and Brigadiers, distributed over 2 years
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Previous Testnet-Mainnet Distribution
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Testnet: 1,291,500 ELYS (20.5% of the initial airdrop)
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Mainnet: 2,564,100 ELYS (40.7% of the initial airdrop) over 3 months
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Cadets: 428,400 ELYS (6.8% of the initial airdrop)
Initial Airdrop Schedule
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Airdrop 1: 63% at launch
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Airdrop 2: 19% (including claw-backs)
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Airdrop 3: 18% (including claw-backs)
New Version (14% of Total Supply)
To address community feedback:
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Total Airdrop: Increased from 5% → 14% (28M ELYS Tokens).
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Enhanced allocations for both Testnet participants and ATOM Stakers.
New Testnet-Mainnet Distribution (36% →10.6M ELYS)
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Cosmos Stakers: 3,181,344 ELYS (30% of the initial airdrop)
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Testnet & Mainnet: 6,011,600 ELYS (60% of the initial airdrop):
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Increased rewards for NFT Holders : 2,855,304 ELYS for Testnet rewards (+121%)
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Additional incentives for Mainnet participants : 3,156,296 ELYS for Mainnet rewards (+23%)
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Community Program (Cadet, Majors, Brigadiers): 1,436,400 ELYS distributed over 2 years.
Revised Airdrop Schedule
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Airdrop 1 (Launch): 36% of 28M (10.64M ELYS)
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Airdrop 2: 17% (including claw-backs)
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Airdrop 3: 16% (including claw-backs)
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Airdrop 4: 16% (including claw-backs)
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Airdrop 5: 15% (including claw-backs)
Updated allocation and distribution for NFT Holders:
Revised Airdrop Allocation Rules:
To reward everyone fairly and after analyzing all the data, we have added an important parameter: a second snapshot taken on December 6. The allocation rules now depend on both snapshots.
Details:
Allocation Rules:
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NFTs Held Between Both Snapshots
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Benefit: Full new allocation as per the updated distribution.
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Example:
- Elysian Legends = 280.70 ELYS
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NFTs Sold Between Both Snapshots
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Benefit: Base allocation + 25% of the difference between the base allocation and the new allocation.
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Example:
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Base allocation: 121.76 ELYS
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New allocation: 280.70 ELYS
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Calculation: 121.76 + 0.25 * (280.70 - 121.76) = 161.50 ELYS
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NFTs Purchased Between Both Snapshots
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Benefit: 75% of the difference between the base allocation and the new allocation.
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Example:
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Base allocation: 121.76 ELYS
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New allocation: 280.70 ELYS
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Calculation: 0.75 * (280.70 - 121.76) = 119.21 ELYS
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Objectives and Reasoning
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Reward Loyalty: Users who held onto their NFTs throughout both snapshots receive the full new allocation. (95% of the cases)
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Value New Participants: Those who joined the ecosystem by purchasing NFTs after the first snapshot still receive significant rewards to reflect their commitment. (5% of the cases)
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Fairness to Sellers: Users who sold NFTs are not penalized, but their allocation is adjusted to reflect their choice to exit earlier. (5% of the cases)
Impact in ELYS VALUE:
This system ensures that everyone benefits while rewarding loyal holders the most. Those who recently joined are also recognized, and sellers are treated fairly.
Revised Cadet Allocation:
After reviewing all the feedback regarding this allocation, and while the Cadets absolutely deserve these tokens for every hour they spent guiding all of you on Discord, creating content, and producing the memes/stickers you use daily, we’ve decided to adjust the distribution method.
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Initial Distribution: Each Cadet will receive 372 ELYS at the mainnet launch.
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Remaining Balance: The remaining tokens will be distributed after three months, aligning with the conclusion of the first phase of the mainnet incentive program, based on active contribution.
This adjustment ensures that the Cadets are rewarded fairly for their incredible contributions while maintaining alignment with our broader distribution and incentive strategies.
Revised ATOM staker Allocation:
ATOM stakers are a vital part of our ecosystem, which is why we’ve increased the total allocation by 3x.
Our decision to include them in the airdrop is rooted in acknowledging the Cosmos SDK we’ve built upon and recognizing the significance of becoming a Partial Set Security (PSS) chain.
It’s only fitting to reward these users who represent the very foundation of the ecosystem we’ve chosen to join and grow within.
Our Approach to the ATOM Staker Airdrop
We view the ATOM staker airdrop as a way to give Cosmos users a first introduction to Elys Network, enabling them to experience our blockchain and applications and see the benefits of becoming active participants.
Changes to the Allocation and Rules
To enhance the experience, we’ve tripled the total allocation for ATOM stakers, increasing it from 1,008,000 ELYS to 3,181,344 EDEN. Additionally, we’ve decided to distribute EDEN tokens, with the following structure:
EDEN use cases:
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Stakable: Allowing stakers to start earning rewards similar to ELYS.
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Convertible to ELYS: If the user decides, EDEN can be chosen to be vested linearly over 3 months, transitioning into Elys tokens.
This approach gives ATOM stakers a taste of Elys Network, encouraging them to explore and actively participate in our mainnet incentive program and future airdrops.
Expanded Eligibility
We’ve simplified the voting requirements. Previously, you needed to vote personally on Proposal 897 (ICS 2.0: Partial Set Security Integration). Now, eligibility extends if you or your validator voted for the proposal.
This adjustment significantly expands the eligible user base from 52,000 wallets to 160,000 wallets.
Fair Distribution Model
To ensure fairness, we’ve applied a quadratic distribution model with minimum and maximum thresholds:
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Minimum Staked: 50 ATOM staked = 17.61 EDEN
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Maximum Reward Cap: 10,000 ATOM staked = 30 EDEN
This structure ensures that smaller stakers are fairly rewarded while avoiding disproportionate rewards for large holders.
ATOM staker conclusion:
This airdrop is designed to introduce ATOM stakers to Elys Network, giving them a glimpse of the opportunities available through our blockchain. It’s an invitation to join our thriving community and take part in the incentives offered at mainnet launch and beyond.
Reward Center Overview:
The Reward Center is a cornerstone of our Mainnet launch. It’s designed to enable you to participate in the incentivized mainnet program and maximize your rewards.
Airdrop Allocation:
50% has been allocated to the Testnet, and the remaining 50% is dedicated to the mainnet.
Key Features:
1. Missions
Your mission will involve actively participating in the ecosystem through:
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Staking: ELYS and USDC.
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Adding liquidity: To the available pools at launch.
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Swapping tokens.
How it works:
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Daily snapshots will be taken (at varying times) to validate your daily participation.
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Swap missions will be based on volume and validated weekly—no need to perform swaps daily.
Further details on ratios, NFT bonuses and thresholds will be provided in a future article.
We have deliberately not put any quests on leverage products, as these are risky products and we don't want inexperienced users to use them for quests.
A PnL competition will be available in the future.
2. Affiliation Program
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Refer friends to Elys Network reward center.
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Earn a percentage of the fees they generate on our DEX directly in USDC, distributed monthly.
Rewards Distribution:
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Rewards will be calculated and distributed monthly.
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Factors include:
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Days of participation:
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Participate 1 day out of 30 → Earn 1/30th of the potential rewards.
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Participate 30 days out of 30 → Maximize your rewards.
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Volume of activity.
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Objective:
Our goal is to provide you with maximum rewards during the Mainnet launch, in addition to the APRs already available in pools and through staking.
Stay tuned for more details, and get ready to make the most of the Reward Center!
Conclusion:
We are thrilled to maximize the value we bring to our community, and we hope this significant increase in allocations reflects just how much we appreciate you and the importance you hold in our journey.
We are equally excited to integrate into the Cosmos ecosystem and provide its stakers with a first glimpse of what Elys Network has to offer. We hope this will inspire them to dive deeper, explore our ecosystem, and leverage the numerous tools we provide to make their DeFi experience truly exceptional.