At 2key, we have always been amazed by the idea of token-based economies and products, and the huge promise of flat economies, where the interest and values for all parties align with the project’s success. When users take part in the success of a technology or a product, there’s a powerful synergy between the builder and consumer roles, driving faster adoption, stronger loyalty, and stronger bindings between all parties in that ecosystem.
The belief that tokenization materializes the synergy between the builder and consumer roles for mutual prosperity moved the Crypto space in its early days, especially during the ICO boom of late 2017 and early 2018. As big the hype and the promise were, the bigger the disappointment we’ve all experienced when more and more tokens failed due to various reasons. However, there were still some great projects that delivered powerful products with highly sought utilities for their token. Such projects twined their product with their token and built a steadily growing demand for products, which built a subsequent demand for the native token. Some outstanding examples are Binance’s BNB, Brave’s BAT, and Maker’s MKR.
The Success of 2key Network’s 2KEY
2key’s team is working hard in order to deliver our vision: allow people to monetize their knowledge and connections and to let anyone earn their fair share while redistributing the wealth the web generates. To do so, 2key Network redefines web links, an infrastructural aspect of the web, to rebuild the monetization of the commerce between businesses and consumers on the web.
As we near the 2key main-net launch and token distribution, we have received an incredible volume of feedback and suggestions from both community members and industry veterans, about not just our product, but also the design of the token, its distribution, and in particular the long-term pool that is meant to fuel continued growth.
After working on the math, and executing incredible foresight, we have reassessed the future pool and cut by 76% (!) We’ve also made other changes to the token metrics without changing the token price or lockups, which resulted in a cut to the total amount of tokens by 40%!
We are very pleased to announce a reduction of the total amount of 2KEY tokens to ever exist by 40%, from 1 billion to 600 million.
The previous 2KEY distribution enabled reputation miners and MPSN miners to eventually be remunerated with far more tokens than would be made available to the pioneering community of 2key. However, after considering that the mining pools are designed to be replenished by the Network smart contract fees, this change reduces the mining pool while retaining the total amount of tokens available for public purchase, thereby empowering the earlier community.
In crypto space, Less token is actually more! So, always look at the half-full glass 😉
How the 2KEY token distribution will look like:
Total # of minted 2KEY tokens — 600 million
Token price — 0.06$
Token Protocol — ERC20
How will the 600m 2KEYs be distributed:
A more detailed explanation of each:
Token Sale — 21% — 126m 2KEYs
- Seed Round token sale was closed in Q2 2018 at an average cost per token of $0.042 USD. The seed round was 5% of tokens — 30m 2KEYs.
Lockup — Seed round participants receive 10% of the token on the first day after the TGE. 90 days after the TGE, the remaining 90% begin unlocking from a smart contract over a 40 week period, 2.25% per week.
- Private Round was conducted between Q3 and Q4 of 2019. Tokens are sold at an average price of $0.046 USD. The private round is 9% of tokens —54m 2KEYs.
Lockup — The lockup mechanism for private sale purchasers is identical to the seed round purchasers.
- Public Sale tokens are sold at a price of $0.06 USD. The public round planed release 7% of tokens — 42m 2KEYs.
Lockup — 100% unlocked
- Early token sale hard cap combined for all stages – $6m
Team — 16% — 96m 2KEYs
- Team tokens are given to 2key team members for their work on the project in the past, present, and future.
Lockup — Tokens are locked for 1 year and are then released in equal monthly distributions over 2 years’ time. The total period for the distribution of all tokens is 3 years.
Advisors & Partners — 6% — 36m 2KEYs
- Tokens reserved for 2key advisors and partners.
Lockup — Locked for the first 3 months after TGE and are vested for 1 year in equal monthly distributions.
Growth Team Fund — 4% —24m 2KEYs
- These tokens will remain as a future token pool to be used as incentivising growth for current and future 2key team members and community developers, and also for businesses and organizations to use 2key Protocol as a white-label solution.
Lockup — Tokens are locked for 2 years and are then released in equal monthly distributions over 2 years’ time.
Transaction/Reputation Mining — 20% — 120m 2KEYs
- Reputation Mining tokens are given to the network users based on their accumulated reputation and by their activation in successfully sharing 2key smart Links to targeted audiences, thereby driving a high rate of conversions, and for their part in growing the network with users and contractors. These tokens incentivize quality sharing, early adoption, and network awareness. and growth.
Lockup — These tokens will be distributed over a 10 year period, up to 1/10 of the total amount per year, starting 6 months from TDE.
MPSN Mining — 10% — 60m 2KEYs (Multi-Party-State-Network Mining)
- The Multi-Party-State Network is an innovation by the 2key team which allows the Network and any other dApp to operate scalable and modifiable smart contracts on a decentralized off-chain network of browser nodes. Read more about it on the 2key Labs page.
Lockup — MPSN tokens are locked for the first 2 years and then mined by users; the token rewards incentivize users to maintain the browser layer-2 Network. Those tokens go into circulation only if MPSN is successfully built and then used for incentivizing the network maintenance by participants for the lifetime of the network.
Social Mining — 1% — 6m 2KEYs
- Social Mining tokens are used to grow the global ecosystem of community supporters. These tokens incentivize meetups, localized communities, and community-sourced project growth.
Lockup — All tokens are distributed by the end of the first 12 months.
Exchange and Liquidity Contracts — 6% — 36m 2KEYs
- 2key exchange contract — Every time a conversion occurs, or demand for 2KEYs rise within the network contracts, it creates an automatic real-time demand from the 2key exchange contract that holds a steady balance of 2KEYs and other tokens such as ETH and DAI. This contract is connected to Bancor, which is the first Dex to provide the required liquidity pool to resupply any missing 2KEYS in there. The total amount of tokens within the exchange contract always remains 3% — 18m 2KEYs.
Lockup — No lockup; This pool of tokens keeps a constant amount within the exchange contract always.
- Tokens allocated for DEXs liquidity contracts. The maximum amount of tokens for this purpose is 2% — 12m 2KEYs.
Lockup — No lockup.
- Tokens allocated for market-making purposes for 2key official market makers. The maximum amount of tokens for this purpose is 1% — 6m 2KEYs.
Lockup — No lockup.
Project Long Term Funding — 16% — 96m 2KEYs
- Long term token supply for funding the future R&D and financing the development of the 2key Network and 2key Protocol. It is held by the 2key admin contract, which can first be unlocked after 2 years by a multi-sig DAO mechanism which reflects the board of directors of the legal entity issuing the tokens, these tokens are designed to be used for future R&D and financing of the development of the 2key Network.
Lockup — Tokens unlock in equal parts after 2, 3, 4, 5, and 6 years after the TGE.
Only together we will reach there!
Creating new technology is a challenge that we have already taken headstrong. Now, with this final redesign of our token distribution, we have taken the challenge of a successful token distribution design headstrong as-well.
2key aims to be one of the leading projects in not just the current nascent stage of the crypto space, but a hallmark for successful execution of tokenization. To ensure this, we regularly research our tokenized peers, learning from their mistakes while being inspired by their successes. This is what helps us design and build the 2key ecosystem and the successful implementation of the 2KEY token such that there is a strong, organic value that rewards all its participants fairly.
We are now confident that the 2KEY token tokenomics and distribution model can propel the network, enabling stability in its functionality, scalability, bolstering early usage, and the creation of a sustainable tokenized ecosystem which concentrates the value into produces in its Token.
Want to learn more about the 2KEY token?
Token page: https://www.2key.network/token
2key Tokenomics Here
2KEY Distribution Sheet Here
Join us, be part of the 2key network, and Earn your fair share for Sharing! 🚀
On a closing note, we want to assert that the token distribution model is one piece of a tri-fold puzzle. The other pieces are token utility and product functionality. The 2KEY token has been granted layers of Network utility that draw organic secondary market demand propelled by both users and the Network’s smart contracts. Finally, 2key’s technology itself is paving a new purpose for the web’s links, the one web infrastructure that had remained static, technologically, for a long time, despite its usage reaching new frontiers. Now, Smart Links recreate web links that possess technological capability to bridge the gap between what links can do and what they are used for.