# 3. Token Distribution

In **2020**, the initial token supply was minted and subsequently distributed across several categories, with the following breakdown (after adjustments and updates through 2024):

* **DAO Treasury:** **27%** of total supply — reserved for ecosystem growth, grants, and governance.
* **Team:** **19%** — allocated to core developers and contributors, subject to vesting.
* **Investors:** **17%** — early backers and private sale participants, with lock-up and vesting schedules.
* **Community Incentives:** **20%** — used for airdrops, staking, farming, and liquidity mining rewards.
* **Foundation Reserve:** **17%** — long-term strategic reserve to support partnerships and liquidity.

![](https://2885372697-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAYQrnMikFRf9t9rTW5K4%2Fuploads%2FVCsQxvPlRgS39IizJOM7%2Funknown.png?alt=media\&token=26d62caf-b789-47e4-b14d-3d5be66aeee5)

**Cliffs and Vesting:**

* **Team and investors:** tokens were subject to a **cliff until August 2024**, followed by gradual linear vesting through **2028**.
* **DAO Treasury:** distribution is controlled by governance decisions, with no automatic release schedule.
* **Community Incentives:** partly unlocked at launch (2020–2021) for early adoption, with the majority allocated to programs in 2024–2026.

**Circulating Supply (as of August 2025):**

* **Total supply:** 1,000,000,000 STON
* **Maximum supply:** 1,000,000,000 STON
* **Circulating:** \~**510,000,000 STON (51%)**

***

### 3.1 Conclusions on Token Distribution

1. **Balanced allocation:** The distribution includes both ecosystem development (DAO, community incentives) and stakeholders (team, investors).
2. **Vesting pressure:** More than **49% of supply** remains locked and will be gradually unlocked through 2028, creating persistent background sell pressure.
3. **DAO control:** A large share (27%) is in the DAO treasury, which gives the community strong influence over token flows but also creates risks of inefficient allocation.
4. **Market impact:** The simultaneous unlocking of team and investor tokens in **August 2024** added significant sell pressure and coincided with a deep price correction.
5. **Critical dependence on incentives:** With 20% of supply allocated to community programs, there is a high risk of oversupply if demand mechanisms are not improved.

### 3.2 Critical Unlocks

* **TGE (June 2023):**
  * Marketing: **2M STON** (20% of pool).
  * Operations: **4M STON** (40% of pool).\
    This formed the initial circulating supply on the market and influenced the first weeks of liquidity.
* **12th month after TGE (June 2024) — start of the largest linear unlock wave:**\
  Vesting begins for Pre-seed, Private Sale, and Advisors: a total of **36M STON over 24 months**, i.e. approximately **1.50M STON/month** until the 36th month.\
  → This is the longest-lasting source of sell pressure.
* **24th month (June 2025) — “double” critical milestone:**
  * **Team tokens** exit cliff: \~**0.583M STON/month** for the next 24 months.
  * **DAO Treasury (20M STON)** ceases to be “hard” staked: partial withdrawals are allowed by DAO decision.
  * At the same time, investor unlocks (\~**1.50M STON/month**, finishing at the 36th month) continue, plus current DAO programs (\~**0.489M STON/month** from Marketing/Operations/Incentives).\
    → Total peak issuance in the 24–36 month window may reach \~**2.57M STON/month**.
* **36th month (June 2026) — easing of supply pressure:**\
  Linear unlocks for Pre-seed / Private / Advisors and Marketing end. Monthly inflow falls to \~**0.85M STON/month** (Team + Operations + Incentives) until the 48th month.
* **48th month (June 2027) — further decline:**\
  Team vesting ends. Only Operations + Incentives remain, \~**0.267M STON/month** until the 60th month.
* **60th month (June 2028) — main emission exhausted:**\
  Unlocks for Operations and Incentives pools end. From this point onward, supply-side pressure depends mainly on DAO Treasury decisions (grants, incentives, buybacks, burns).

**Risks for token price:**

* Maximum sell pressure expected during months **24–36**, as unlocks overlap across multiple pools (investors, Team, Treasury).
* After 24 months, everything depends on DAO decisions. If the DAO spends Treasury aggressively, it may amplify selling pressure. If it votes for buybacks or burns, pressure could decrease.

**Monitoring priorities:**

* Unlock calendar (**12/24/36/48/60 months**).
* DAO Treasury decisions.
* Short-term effects of Marketing/Incentive campaigns.

**Risk mitigation strategies:**

* **Treasury management:** spending caps per month/quarter, prohibition of large one-off tranches.
* **Buyback & burn policy:** automatic buyback and burn of part of protocol revenues to offset net supply inflows.
* **Vesting adjustments:** voluntary extensions or re-lock agreements with major holders.

***

### 3.3 Conclusions

1. The token distribution schedule creates **predictable supply overhangs** with clear stress points at **months 12, 24, 36, 48, and 60**.
2. The **heaviest pressure** falls on the **24–36 month window (June 2025 – June 2026)**, when investor, team, and Treasury tokens all overlap.
3. After month 36, pressure gradually decreases, with almost all major unlocks completed by month 60 (June 2028).
4. DAO Treasury plays a **critical role**: depending on governance decisions, Treasury can either worsen sell pressure (via grants/distributions) or reduce it (via buybacks/burns).
5. Long-term stability depends on establishing **sustainable utility** and token sinks, otherwise unlock waves will continue to dominate market dynamics.