The LORE Token Model

Gitopia envisions a decentralized open-source economy in which developers collaborate and get rewarded for creating cutting-edge technological advancements. LORE tokens have been designed to fuel the future of this open-source economy.

LORE token($LORE) is the native utility token of Gitopia. Gitopia leverages the LORE token as the primary means to govern, and secure the blockchain, provide a default mechanism to store and exchange value, and act as a utility to fund the contributions, rewards, and resources on Gitopia.

With the growth of the network, the LORE token would play an essential role in shaping the open source economy outside Gitopia Network. To achieve this, we would be taking regular feedback from the community on various aspects of these incentives. Hence, most pre-mined LORE token supply would be vested at genesis with different unlock timings. These tokens would be unlocked in the respective pools as and when the vesting schedule is reached.

Purpose of LORE tokens:

LORE token($LORE) is the native utility token of Gitopia. Gitopia leverages the LORE token as the primary means to govern, and secure the blockchain, provide a default mechanism to store and exchange value and act as a utility to fund the contributions, rewards, and resources on Gitopia.

• Governance: Staking your LORE tokens provides you with voting rights to participate in decision-making in shaping the future of the protocol. Governance is the critical component of how the Gitopia ecosystem will evolve. Active network stakeholders will be responsible for proposing, vetting, and passing protocol upgrades and incentivization strategies for the contributor community.

• Staking: As staking tokens, LORE can be “bonded” to earn block rewards. The economic security of the Gitopia blockchain is a function of the number of LORE tokens staked. The higher the network’s bonded ratio, the higher the cost of attacking the network.

• Value-added services: The LORE token will act as the primary means of payment for using services on the Gitopia marketplace and other value-added services for developers and DAOs.

• Transaction fees: Beyond the resources and value-added services, Gitopia also leverages LORE tokens for transaction fees on Gitopia. Initially, fees will act as a spam protection mechanism. With the network effect in place, fees would also serve as the primary source of revenue for the stakeholders.

• Incentivization: The LORE token will be the base token for incentivizing contributors through development-related grants, sponsorship, or donations. While offering rewards in other tokens will be possible, the LORE token will continue to be the primary method of incentivizing contributors on the Gitopia platform.

• Other storage services: The LORE token will act as the base token for using other data storage platforms, like Arweave, Filecoin, and IPFS, to secure their repositories and ensure uninterrupted access to their data on Gitopia. This integration provides an extra layer of security for users and enables seamless data storage and sharing in the Gitopia ecosystem.

• Resources: LORE tokens can be used to pay for infrastructure resources and services for Gitopia.

LORE Token in Numbers

LORE Token is an Inflationary supply token with a genesis supply of 500,000,000 LORE. At Genesis, the 500,000,000 LORE will be pre-mined and divided into multiple pools, as shown below:

We have consolidated and redistributed several token pools from our previous tokenomics to better align the incentives for long-term growth of the Gitopia ecosystem. The details of each pool are outlined in a later section of the blog.

Block Rewards and Inflation

The LORE token inflation at genesis is set to 35%, with a halving every two years until we reach a Max supply of 1,711,136,433 in 11 years or 132 months.

The newly minted tokens are divided into four pools:

• Staking rewards - 37%
• Team Vesting - 28%
• Ecosystem incentives - 30%
• Community pool - 5%

Token Release Schedule

The newly minted LORE tokens will be distributed in their respective pools, and the overall token release schedule ovver the period of 11 years is as shown below:

Fully Diluted Token Distribution

The max supply of 1,711,136,433 LORE is expected to reach in 11 years or 132 months, at which point the Fully Diluted Token Distribution will be as shown below:

Staking and Governance

Network Security (Staking)

As Gitopia runs on the delegated Proof-of-Stake-based Tendermint PBFT consensus engine, staking ensures a secure and robust network.

Staking is the process of locking up a digital asset (LORE in the case of Gitopia) to provide economic security for a public blockchain. Public blockchains are permissionless networks, meaning anyone is free to participate in maintaining them. As a result, it would be possible for some of the network maintainers (called validators) to act maliciously. To ensure that the maintainers behave in the network’s best interest, the locked-up assets are at risk of being partially slashed (destroyed) if there is evidence that a fault was committed.

All delegators and validators would receive transaction fees and staking rewards as incentives for staking on the network. Over an 11-year period (132 months), the max supply of 1,711,136,433 LORE will be reached. After eleven years, the reward schedule ends, and LORE will become deflationary. At that point, network incentives would primarily come from transaction fees by millions of developers collaborating on code in Gitopia. Alternatively, the community can choose to opt for some separate token fee structure via governance.

All tokens vested and locked at genesis would be eligible to receive staking rewards. For the team, early supporter, strategic partner, and advisors pools, the staking reward tokens will stay locked till they are vested. For other pools, the staking rewards will be unlocked and liquid controlled by the community via proposals. The amount reserved for LBP would be unlocked at the Mainnet and would be used by the community to make gitopia available on their favorite DEX.

Governance

LORE holders can participate in protocol governance by issuing proposals and voting on various factors that shape the broader Gitopia ecosystem. Governance exists for the community of token holders to decide on key issues involving the gitopia blockchain and its development. This is achieved through a proposal system where token holders can suggest items of business to be voted on by the community. A minimum deposit is required for a proposal to enter the voting period, during which LORE holders can vote on whether the proposal is accepted or not. The weight of each holder’s vote in the on-chain governance process is proportional to the number of LORE tokens staked. This ensures that every holder has a fair say in determining the future direction of Gitopia, with greater weight given to those who stake more LORE tokens.

Detailed Summary of Different Pools

Early Supporters:

At genesis, there will be an allocation of 53,928,571 LORE tokens to the individuals and entities that provided invaluable support in the early stages of the Gitopia ecosystem. The support of these individuals and groups were essential to bootstrap Gitopia DAO and foundation, help with legal structures, and early-day development efforts. Their support helped Gitopia build and ship our public Testnet, “Gitopia Janus Testnet,” and would set the base for Genesis. The purpose of this allocation is to acknowledge their valuable contributions to the Gitopia ecosystem.

• Source of Supply: Genesis Distribution (53,928,571 $LORE)
• Vesting Period: Yes
• Vesting Schedule: 12 months cliff. 5.00% unlock every two months post vesting.
• Account type: Multisig

In 2021, Gitopia received support from a group of early contributors who supplied the necessary resources to drive the project forward. The assistance offered by these individuals and entities facilitated the following:

• Validating hypotheses relating to the customers, demand, and planned offering by research, Building the MVP, and releasing public Testnets.
• Bringing key stakeholders on board.
• Registering key patents, trademarks, and IP to futureproof the Gitopia ecosystem.
• Fund day-to-day operations for Gitopia, including(but not limited to) development, legal, hiring, and branding.
• Facilitating in-person collaboration and team bonding.
• Attending various Web3 and developer events like Cosmoverse Medellin, Web3Conf India 2022, GopherCon India, and RubyConf India to engage with and learn from the wider community.
• It is important to note that no funds were used to sponsor events. Instead, hackathons and other events were incentivized using the Game of $LORE incentives.

Strategic Partners:

This allocation is reserved for fostering strategic partnerships and will be assigned before mainnet launch. If allocated post-mainnet, the partners will have the same vesting terms and cliff as the early adopters from the allocation date. Until then, the allocation will remain locked and will not receive any staking rewards. The primary goal of this allocation is to extend Gitopia’s reach, improve visibility, and align Gitopia with technological advancements and socio-economic changes.

• Source of Supply: Genesis Distribution (51,071,429 $LORE)
• Vesting Period: Yes
• Vesting Schedule: 12 months cliff. 5.00% unlock every two months post vesting.
• Account type: Module

Details related to this allocation will be released when any progress is made in this direction.

Liquidity Bootstrapping Pool (LBP):

At genesis, there will be an allocation of 30,000,000 LORE tokens to this pool which is reserved for liquidity pool creation, bootstrapping, and other pool incentives. This will be done via a community vote for getting liquidity for a specific asset (X in LORE/X) to initiate an LP on Osmosis. For example, for the LORE/OSMO pool, the asset would be streamed via StreamSwap for OSMO which would then be used along with additional LORE to initiate an LP on Osmosis under LORE/OSMO pool via a proposal.

• Source of Supply: Genesis Distribution (30,000,000 $LORE)
• Vesting Period: No
• Account type: Module

Details related to this fund will be released when any progress is made in this direction. This fund may also be used for creating potential LP’s on other decentralized exchanges.

Strategic reserve:

As mentioned earlier in the blog, we have consolidated several token pools from our previous tokenomics into a single strategic reserve. At Genesis, we have allocated 250,000,000 LORE tokens to this strategic reserve, and this reserve is specifically designed to support the long-term expansion and adoption of the Gitopia ecosystem. This fund will generally not be utilized for direct team compensation but instead provides grants to companies and projects that contribute to the network’s development. The Strategic reserve is securely held in a multisig wallet managed by the founding team.

• Source of Supply: Genesis Distribution (250,000,000 $LORE)
• Vesting Period: No
• Account type: Multisig

Some of the purposes of this pool include, but are not limited to:

• Hiring agencies or services like auditing, security firms, etc., to ensure the highest standards for the Gitopia network.

• Support validators through delegation who are highly active in the network.

• Facilitating the onboarding of strategic partners to Gitopia.

• Establishing future partnerships or acquisitions to enhance Gitopia’s suite of offerings for token holders.

• Strategic delegations to onboard key validator partners.

• Ensuring Gitopia remains competitive with existing code collaboration platforms by offering free services or resources to developers, such as storage, CI/CD minutes, and cloud services. This fund will cover the costs of maintaining a robust infrastructure for millions of users.

• Funding tools, products, or use cases building on Gitopia blockchain.

• Align long-term partners to enhance Gitopia.

• Provide grants to developers or teams building with Gitopia Team.

To ensure the continued decentralization of the network, we will take a cautious approach to stake the strategic reserve, as we aim to prevent any single entity from gaining undue influence over the network.

Advisors:

For developing a protocol for the future to solve open-source problems, we would require a board of advisors who can help us brainstorm, ideate, build, or advise on how the key components of the network would function.

• Source of Supply: Genesis Distribution (10,000,000 $LORE)
• Vesting Period: Yes
• Vesting Schedule: 12 months cliff. 10.00% unlock every four months post vesting.
• Account type: Multisig

This pool is reserved for us to make a long-term strategic board of advisory council or open-source consortium with popular projects on board, helping us make better decisions for the Gitopia ecosystem. Plans on this will be released as and when the work progresses.

Community Pool:

The community pool is controlled and governed by the community. Apart from the pre-mined 37,500,000 LORE tokens, the community pool is eligible to receive 5% of the inflation rewards. Its purpose is to support projects or initiatives that will benefit the protocol and its ecosystem.

• Source of Supply: Genesis Distribution (37,500,000 $LORE) and Block Emission (5.00%)
• Vesting Period: No
• Account type: Module

These tokens can be allocated through governance proposals by the community on projects or initiatives that will benefit the protocol.

Team Vesting:

28% of the block emission will go on to form the team vesting pool. The team funds would be utilized to incentivize core team members for their efforts in building Gitopia, the primary purpose is to retain and motivate team members to deliver the best possible products and services to the community.

• Source of Supply: Block Emission (28.00%)
• Vesting Period: Yes
• Vesting Schedule: 12 months cliff. 0.834% unlock every month post-vesting.
• Account type: Module

The vesting period of this pool has been designed to ensure that the team remains fully committed to the development of the protocol and community. To this end, the pool is subjected to a more extended vesting period of ten years, with a cliff of one year. During the vesting period, 0.834% of the tokens will get unlocked every month. This extended vesting period will ensure that the team is committed to the project’s future development, even beyond the initial launch period.

To ensure the interests of the protocol, there are steps taken against the team’s interests, such as not taking staking rewards for unvested tokens and not taking rewards for the first cliff year. We will also implement a clawback mechanism that allows us to recover unvested team tokens in the event of a change in the development team. This step will ensure that only committed team members receive tokens and that unvested tokens do not end up in the wrong hands. These measures ensure that team members remain committed to the protocol’s success and act in its best interests.

Staking Rewards:

Validators and delegators are crucial to ensuring the security of the Gitopia blockchain and help with block proposing and verification. At genesis, there will be slots for 100 validators, selected by the highest amount of delegation. The number of possible validators is subject to governance and can be adjusted.

37% of the block emission will go towards rewarding the active validators and their delegators proportionally based on the amount of LORE tokens staked.

• Source of Supply: Block Emission (37.00%)
• Vesting Period: No

Rewards are distributed to stakers delegated to a top 100 validator proportionally to the amount of LORE staked. Validators charge a commission rate to their delegators on staking rewards earned. Each validator may choose their own commission rate, but there is a network-wide mandated minimum commission rate of 5%.

Ecosystem Incentives:

Ecosystem incentives drive the usage, participation, and behavior within Gitopia. These funds are reserved to incentivize users and projects by allowing them to earn tokens or to reward them for certain behaviors specifically designed to support the long-term growth of the Gitopia ecosystem.

• Source of Supply: Genesis Distribution (7,500,000 $LORE) and Block Emission (30.00%)
• Vesting Period: No
• Account type: Module

Apart from the pre-mined 7,500,000 LORE tokens, the ecosystem incentives pool is eligible to receive 30% of the inflation rewards. These funds can be used for the following:

• Incentivizing liquidity pools in various decentralized exchanges.
• Incentivizing builders and external teams building and contributing on Gitopia.
• Provide additional rewards to some participants with exceptional contributions to the Gitopia ecosystem.
• Incentivizing tools, products, or use cases building on Gitopia blockchain.
• Fee grants for early adopters of Gitopia, supporting their initial costs and encouraging them to actively participate in the ecosystem’s growth.

Airdrop and Game of $LORE rewards:

This pool is designed to encourage and support the Gitopia ecosystem’s growth by providing incentives to users, developers, and community members who contribute to the platform. These rewards will be distributed to the community via various Airdrops and incetivization mechanisms.

• Source of Supply: Genesis Distribution (60,000,000 $LORE)
• Vesting Period: No
• Account type: Module

Any rewards left undistributed from these pools will be added to the community pool after the reward period is over.

1. Game of $LORE rewards

As promised in the Game of $LORE incentivization mechanism, 2,250,000 $LORE are reserved to reward its participants. This allocation is split into 1,250,000 $LORE for Game of $LORE contributors and 1,000,000 $LORE for Game of $LORE validators. We thank you for your continued support and participation in the Game of $LORE incentivization mechanism.

2. Airdrop to past open-source contributors

As a way to give back to the open-source community and attract more developers to the platform to help the Gitopia ecosystem grow, 7,750,000 $LORE will be airdropped to open-source contributors based on their past contributions to open-source and web3 projects on GitHub. This airdrop consists of a series of monthly airdrops designed to incentivize past open-source contributors on GitHub to migrate to Gitopia.

• Series 1 - 2,000,000 $LORE
• Series 2 - 1,700,000 $LORE
• Series 3 - 1,400,000 $LORE
• Series 4 - 1,100,000 $LORE
• Series 5 - 800,000 $LORE
• Series 6 - 500,000 $LORE
• Series 7 - 250,000 $LORE

3. Airdrops to Cosmos projects and their repositories

The remaining 50,000,000 $LORE will be distributed to actively developed Interchain projects or chains through various airdrop programs, emphasizing collaboration and interchain development.

To maximize the impact of this initiative, we will start with the following highly influential Cosmos projects:

1. Cosmos Hub (ATOM): The heart of the Cosmos ecosystem, connecting chains and boasting a large developer community, perfectly positioned to enhance Gitopia’s growth and impact.

2. Osmosis (OSMO): A decentralized exchange with a strong developer base, capable of collaborating with Gitopia on innovative cross-chain solutions.

3. Akash Network (AKT): A decentralized cloud computing marketplace that can benefit Gitopia by providing affordable cloud resources for developers.

Future Expansion

The remaining 41,000,000 $LORE is reserved for Interchain bounties on issues on Gitopia for all verified Cosmos projects, including the initial three projects. These projects will be verified and added via governance proposals, ensuring a transparent and community-driven expansion. This fund also supports teams contributing software to the interchain ecosystem, even if not directly tied to network chains.

By concentrating on these three profile projects within the Cosmos ecosystem and enabling future growth through governance proposals, we aim to significantly boost Gitopia’s visibility and benefits. This initiative will drive the development of a strong, censorship-resistant, and decentralized platform for code collaboration and innovation.

All airdrop recipients will be required to complete a series of specific tasks to unlock the airdrop rewards. Further information regarding the airdrops and tasks will be announced in an upcoming blog at mainnet release.

Conclusion:

In conclusion, the Gitopia token model is designed to bootstrap the Gitopia ecosystem with well-aligned incentives for key stakeholders and contributors. As Gitopia evolves, the community will have complete control over the funds and will be able to propose changes to fine-tune the purpose and functionalities of each pool through on-chain governance. This will ensure that the Gitopia ecosystem can adapt and grow to meet the changing needs of its users over time.

The launch of Gitopia mainnet is slated for April 2023, and further details about the launch will be released in the coming days. It is important to recognize that the initial launch is just the beginning of a long-term journey, and we look forward to the ongoing evolution of Gitopia in the months, years, and even decades to come. As we embark on this journey, we look forward to working closely with our community to shape the future of Gitopia. We are committed to fostering an inclusive and collaborative community that will drive the growth and success of Gitopia for years to come.

About Gitopia

Gitopia is the next-generation Decentralized Code Collaboration Platform fuelled by a decentralized network and interactive token economy. It is designed to optimize the Open-source software development process through collaboration, transparency, and incentivization.

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Website: https://gitopia.com/

Whitepaper: https://gitopia.com/whitepaper.pdf

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Forum: https://forum.gitopia.com/