Comparison of Proposed and Previous Tokenomics
Last updated
Last updated
X Perks includes Seed, Private, and Public Sale investments, which involved a three-month process allowing L1X Coin holders to vest their coins for an extended period in exchange for bonuses.
Key Highlights
New Team Pool (22.5% of Total Supply)
Allocation: 225 million tokens
Cliff: 12 months from TGE (compared to the previous cliff of 6 months)
Vesting Period: 36 months (extended from the previous 24 months)
Rationale: The longer cliff and extended vesting period signify a commitment from the core team to the long-term success of the project. By locking in tokens for a longer duration, we ensure that key contributors are aligned with the long-term objectives, reducing sell pressure in the early stages of the project while maintaining strong incentives for sustained performance.
New Advisor Pool (5% of Total Supply)
Allocation: 50 million tokens
Cliff: 12 months (compared to the previous cliff of 8 months)
Vesting Period: 36 months (extended from the previous 24 months)
Rationale: Advisors play a crucial role in guiding the project through its various growth phases. Extending the cliff and vesting period allows for stronger alignment between advisory contributions and the project’s long-term milestones, ensuring that their vested interest aligns with the overall growth trajectory.
New Marketing Pool (5% of Total Supply)
Allocation: 50 million tokens
Cliff: No cliff (previously 11 months)
Vesting Period: 120 months (extended from 60 months)
Rationale: The marketing pool is key to driving adoption and engagement across the ecosystem. A long-term vesting schedule reflects our commitment to continuous marketing efforts that align with the growth of the platform. By removing the cliff, we allow for immediate access to resources, ensuring that marketing efforts can commence promptly and scale effectively over time.
New Certificate Stabilization Pool (5% of Total Supply)
Allocation: 50 million tokens
Cliff: 24 months (compared to the previous cliff of 11 months)
Vesting Period: 60 months (reduced from 120 months)
Rationale: The certificate stabilization pool ensures network stability and utility, particularly for certifications and validations within the ecosystem. The longer cliff reflects a careful approach to stabilizing the token market, while the shortened vesting period balances the need for long-term stability with timely access to resources for network participants.
This revised allocation strategy reflects a commitment to long-term project success, investor confidence, and market stability. The extended cliffs and vesting periods for team and advisors demonstrate alignment with the overall vision, while the adjustments to the marketing and certificate stabilization pools ensure ongoing project growth and stability. This structured approach minimizes sell pressure, ensures sustained development efforts, and strategically aligns token distribution with key milestones in the ecosystem.
The below diagram shows the updated release schedule of the total supply of L1X Coins.
The previous token release schedule below shows a difference in the token emissions in the important early adoption stage from TGE. The new token release model above shows a lower initial circulating supply with reduced emissions in the early stages to support the adoption model stages explained previously.
The L1X Token Distribution is structured into two main categories: External Accounts and Net Treasury. The External Accounts comprises both X Perk and Non-X Perk tokens. X Perk tokens are those acquired through Seed, Private, or Public Sales, offering holders bonuses for extended vesting periods. In contrast, Non-X Perk tokens include allocations from various pools such as Growth, Validator, Developer, Advisor, Marketing, and Certificate Stabilization. The Net Treasury serves as a reserve to ensure the project's long-term sustainability, funding ongoing operations, development, and strategic initiatives.
Total Coins in Circulation: ~31 million
External Accounts: ~12.65 million (41%)
X Perks: ~3.9 million
Non-X Perks: ~8.75 million (including bonuses, rewards, and grants)
Treasury: ~18.32 million (59%)
Majority of the coins released initially occupied Non-X perk category. This was due to the pre-launch marketing campaign. The selling pressure due to these non-investment source coins was the primary reason for the price of the coin to dip.
Total Coins in Circulation: ~62.2 million
External Accounts: ~31.51 million (51%)
X Perks: ~13.51 million
Non-X Perks: ~18 million
Treasury: ~30.68 million (49%)
The Non-X Perk coins are at 18 million which is majorly due to the X Perk bonus that are provided to the L1X Coin holders. The Non-X Perk coins start maturing at this stage and will reach a maximum of ~21 million coins in the next few months. Non-X Perk coins buy-back program is being cemented to get these coins off the market into the treasury and with long term investors.
Total Coins in Circulation: ~88 million
External Accounts: ~42 million (48%)
X Perks: ~23 million
Non-X Perks: ~19 million
Treasury: ~46 million (52%)
Total Coins in Circulation: ~137 million
External Accounts: ~72 million (52%)
X Perks: ~52 million
Non-X Perks: ~20 million
Treasury: ~66 million (48%)
Total Coins in Circulation: ~187 million
External Accounts: ~101 million (54%)
X Perks: ~81 million
Non-X Perks: ~20 million
Treasury: ~86 million (46%)
Total Coins in Circulation: ~233 million
External Accounts: ~128 million (55%)
X Perks: ~107 million
Non-X Perks: ~21 million
Treasury: ~105 million (45%)
By January 2026, the network reaches a significant milestone with 233 million coins in circulation. The allocation to external accounts remains at 55%, with X Perks now commanding a dominant 107 million coins. This strategic emphasis ensures that our user base remains highly engaged, while the 45% allocation to the treasury provides a solid foundation for ongoing development, innovation, and security.
Summary
Below table provides a quick glimpse of approximate Total Token Distribution to External Accounts and Treasury.
The token distribution strategy reflects a deliberate approach to balancing network expansion with long-term stability, as evidenced by the progressive increase in the percentage of coins allocated to external accounts, rising from 41% in September 2024 to 55% by January 2026. This shift underscores our focus on incentivizing user engagement and network participation while maintaining a strong treasury reserve, which decreases from 59% to 45% over the same period. This careful allocation ensures that while the network grows, sufficient resources remain available to support future initiatives and sustain overall network health.
Further the token distribution to External Accounts is split in X Perk and Non-X Perk category.
The strategic allocation of External Accounts tokens within our network demonstrates a clear, intentional shift towards prioritizing X Perks over time, starting from around 31% in September 2024 and reaching 84% by January 2026. This progression reflects our commitment to rewarding long-term user engagement and sustaining a vibrant community, while simultaneously reducing the proportion of Non-X Perks from 69% to 16%, thereby minimizing the issuance of coins at $0 and enhancing the overall market value of our token.
Conclusion
The L1X token distribution strategy outlined above is a testament to our commitment to balancing network growth with stability. By progressively increasing the allocation to external accounts, particularly through the X Perks program, we incentivize active participation and foster a vibrant, engaged community. Simultaneously, our treasury management ensures that we retain the necessary resources to sustain long-term development and adapt to future challenges. This carefully crafted strategy positions our blockchain network for robust growth, stability, and enduring success in the evolving digital economy.
To absorb 42 million L1X coins from the market by Mar 2025 through an intentional dual-strategy approach—Strategy1 (Consumption) and Strategy2 (Distribution Reduction). This strategy has been specifically adopted to soak excess liquidity from the market, enhancing the stability and long-term value of L1X.
1. Coin Buy-Back Program
Foundation & Strategic Partnerships: A structured coin buy-back program has been adopted by the L1X Foundation in collaboration with strategic partners. By repurchasing L1X coins directly from the market, this initiative actively removes coins from circulation, reducing available liquidity and sustaining price support.
2. X-Talk Integration Grants
Grant Utilization for Buy-Back: A portion of the X-Talk Integration Grant monies has been deliberately earmarked for buying back L1X coins on the open market. This approach targets liquidity soaking by redirecting funds meant for platform growth toward direct coin absorption.
3. Participation in Project Capital Raise & Utility Purchases
Investment in L1X-Powered Projects: L1X coins are being used strategically in project capital raises and utility purchases within the L1X ecosystem, including ventures like the L1X App NFT Tier, Zeus DeX, and Shufl Marketplace. These initiatives ensure that coins are absorbed into long-term utility-based projects, mitigating liquidity while driving ecosystem activity.
4. Transaction Fees
Fee Consumption: Transaction fees paid by users in L1X coins have been introduced as a continuous mechanism to reduce circulating liquidity. Every transaction fee contributes to soaking liquidity by consuming coins directly within the ecosystem.
1. L1X Staking in DeFi Applications
Staking Mechanism: To further soak liquidity, users are encouraged to stake L1X coins into DeFi applications. This locks up a significant portion of the circulating supply, reducing the distribution rate and soaking excess liquidity in a controlled and incentivized manner.
2. L1X Staking in Nodes
Node Staking: Additionally, node staking has been implemented as part of this strategy. By incentivizing L1X holders to stake their coins in network nodes, a substantial portion of the coin supply is taken out of active circulation, reinforcing the liquidity reduction strategy.
Conclusion
Reducing the proportion of Non-X perk coins (bonus coins) to the x perk coins is the focus. Coin buy back program and coin consumption strategies will be pushed to make sure that the total number of coins in the market have a base price set which constantly increases. By emphasizing liquidity soaking, we effectively counteract potential price dips from selling pressure associated with non-X Perk coins, thereby fostering a robust and upward-trending market environment.
| L1X Coins | Sep 24 | Jan 25 | Apr 25 | Jul 25 | Oct 25 | Jan 26 |
|---|---|---|---|---|---|---|
| External Accounts | Sep 24 | Jan 25 | Apr 25 | Jul 25 | Oct 25 | Jan 26 |
|---|---|---|---|---|---|---|
External Accounts (%)
41
51
48
52
54
55
Treasury (%)
59
49
52
48
46
45
X Perks (%)
31
43
55
73
80
84
Non-X Perks (%)
69
57
45
27
20
16
