Understanding Tokenomics

CRV officially launched on the 13th of August 2020. The main purposes of the Curve DAO token are to incentivise liquidity providers on the Curve Finance platform as well as getting as many users involved as possible in the governance of the protocol.

Supply

The total supply of 3.03b is distributed as such:

  • 62% to community liquidity providers

  • 30% to shareholders (team and investors) with 2-4 years vesting

  • 3% to employees with 2 years vesting

  • 5% to the community reserve

The initial supply of around 1.3b (~43%) is distributed as such:

  • 5% to pre-CRV liquidity providers with 1 year vesting

  • 30% to shareholders (team and investors) with 2-4 years vesting

  • 3% to employees with 2 years vesting

  • 5% to the community reserve

The circulating supply will be 0 at launch and the initial release rate will be around 2m CRV per day.

The chart below shows the circulating supply at the end of year one should be around 750m CRV. The rate of inflation is there to help put the DAO's control in the hands of liquidity providers on the Curve Finance protocol.

The CRV Token

To understand the supply and the tokenomics, it's important to understand its purposes.

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