Token Distribution

The ENCT token is the lifeblood of the Encryptum ecosystem, designed to power a range of activities, from governance and staking to incentivizing liquidity and ecosystem growth. By distributing ENCT across several strategic channels, Encryptum ensures that its growth is aligned with the long-term interests of the community, developers, and stakeholders.

Max Supply: 1,000,000,000 ENCT

The total supply of ENCT is capped at 1,000,000,000 tokens, ensuring scarcity and long-term value retention for token holders. Below is a comprehensive breakdown of the token allocation and rationale for each category:

Token Allocation Breakdown

1.) 70% Liquidity Pool (Uniswap)

Amount Allocated: 700,000,000 ENCT

• Purpose: This large portion of the token supply (70%) is allocated to the Uniswap liquidity pool (LP), ensuring deep and sustained liquidity for the ENCT token on decentralized exchanges. The primary objective is to:

• Provide an easily accessible trading pair for users to buy or sell ENCT.

• Support price discovery in a decentralized and transparent manner.

• Ensure market stability by reducing the risk of price manipulation through thin liquidity.

  The liquidity pool allocation will ensure that there is always sufficient ENCT liquidity available for transactions. By facilitating easy entry and exit points, this helps foster greater adoption and user participation in the Encryptum ecosystem.

2.) 3% Team Allocation (Locked for 6 Months)

Amount Allocated: 30,000,000 ENCT

• Purpose: This allocation is designated for the core team behind the Encryptum project, ensuring that those leading the development of the protocol are incentivized to remain engaged and aligned with the long-term vision of the project.

• Lock Period: The team allocation is locked for 6 months, ensuring that the team’s interests are aligned with the project's growth and stability. This lock period also guarantees that the team cannot sell or liquidate tens immediately, which instills confidence in investors and the community.

• Incentive Structure: After the lock periode, the team can start accessing their tokens, but the lock ensures that they are committed to the project’s success and the long-term value proposition.

3.) 7% Early Contributors & Strategic Partnerships

Amount Allocated: 70,000,000 ENCT

• Purpose: This allocation is set aside for early contributors and strategic partnerships that helped shape the project from its early stages. This group may include:

• Advisors, founders, and key developers who played a pivotal role in the ideation and development of Encryptum.

• Strategic partners who bring technical expertise, industry connections, or market access to the project.

• Early investors who supported the project before public token sales, allowing Encryptum to build a robust foundation.

  This allocation rewards those who have believed in the project from its inception and contributed towards its success. It also provides an incentive to build and expand Encryptum’s ecosystem through long-term partnerships.

4.) 8% Ecosystem Lock (6 Months)

Amount Allocated: 80,000,000 ENCT

• Purpose:This portion of the supply is specifically reserved to grow and develop the broader Encryptum ecosystem, with key uses being:

• Partnerships and Integrations: Allocated to facilitate future partnerships with other decentralized protocols, projects, or enterprises that can leverage the Encryptum platform for AI-driven storage solutions.

• Ecosystem Development: Supporting initiatives aimed at increasing adoption, such as developer bounties, incentives for dApp creators, and other tools that encourage the growth of the platform.

• Ecosystem Growth: The 6-month lock period ensures that the funds are not released prematurely, allowing for steady and thoughtful ecosystem development. The locked allocation gives long-term focus to ecosystem expansion and ensures stability.

  After the lock period, these funds will be used to continue building the Encryptum ecosystem, including the deployment of new features and integrations.

5.) 7% Contributors Lock (6 Months)

Amount Allocated: 70,000,000 ENCT

• Purpose: This allocation is for contributors who have worked directly on the development, research, or maintenance of Encryptum:

• Developers, auditors, researchers, security experts, and technical advisors who have helped design and build the protocol.

• Contributors who provide value through their continued involvement in the Encryptum project, ensuring its ongoing development, improvement, and security.

Similar to the team allocation, these tokens are locked for 6 months, ensuring that contributors are incentivized to continue working on the project and that their involvement remains aligned with the ecosystem's long-term growth and success.

6.) 5% DAO Allocation

Amount Allocated: 50,000,000 ENCT

• Purpose: The DAO (Decentralized Autonomous Organization) allocation is designed to give the Encryptum community a direct voice in the governance of the protocol. It serves several critical functions:

• Governance Participation: Token holders can participate in the decision-making process regarding protocol upgrades, future features, integrations, and other significant developments within the Encryptum ecosystem.

• Proposal Submissions: Community members can propose changes, improvements, or new initiatives for Encryptum’s growth and direction.

• Incentivizing Participation: By giving the DAO a portion of the token supply, it creates a direct incentive for community members to become involved in decision-making.

  Unlike other allocations, the DAO allocation is not locked, allowing immediate participation in governance processes. This ensures that community-driven development and decentralized decision-making are at the core of Encryptum’s evolution.

Key Highlights and Rationale Behind the Allocation Model

• Strategic Lock Periods: The 6-month lock periods for the team, contributors, and ecosystem funds are designed to ensure stability and trust iin the project. They prevent short-term selling and encourage long-term engagement, ensuring that the project's growth is not jeopardized by early liquidity unlocks.

• Community-Centric: By allocating 5% of the supply to the DAO and ensuring it is not locked, Encryptum emphasizes its commitment to community governance and decentralization. This allows token holders to shape the future of the protocol from day one.

• Ecosystem Support: With 8% of the total supply reserved for future ecosystem development and partnerships, Encryptum is positioning itself for scalable growth, ensuring the platform will have the resources it needs to evolve in response to industry changes.

• Incentivizing Long-Term Growth: The allocation model balances short-term liquidity needs with long-term strategic goals. The focus is on building an active, engaged community that is invested in the success of the platform, as well as a strong developer ecosystem driving continuous innovation.

This detailed tokenomics breakdown illustrates the thought process behind each allocation, the lock periods, and their long-term value propositions. The strategy aligns the interests of developers, contributors, community members, and investors, ensuring that Encryptum has the infrastructure for sustainable, decentralized growth.