VRTX Token Supply Distribution
Comprehensive breakdown of the VRTX token supply allocations and emissions.
The Vertex Token ($VRTX) is Vertex Protocol’s governance token designed to facilitate the decentralized governance of Vertex Protocol from stakeholders in the Vertex DAO. VRTX can be converted into two sub-types that perform specific functions within Vertex’s tokenomics and governance framework.
The two sub-types of the VRTX token include:
- xVRTX
- voVRTX
VRTX can be used to create the liquid staking token, xVRTX, a transferable staking token representing a single vote in governance and eligibility to share a proportional amount of the protocol’s revenue and emissions.
The non-transferable “voting share” token, voVRTX, represents a “user score” for holders. The voVRTX tokens unlock users’ eligibility for boosted voting rights and specific ecosystem rewards based on actions such as using VRTX to pay for trading fees and xVRTX staking in the Insurance Fund.
For a comprehensive overview of the VRTX token’s functions within the Vertex protocol and DAO, please refer to the Tokenomics section of the Vertex Litepaper here.
Details of the VRTX token supply and distribution are examined thoroughly below.
Total VRTX Supply: 1,000,000,000
There will be a total of 1,000,000,000 VRTX tokens, where 90.08% of tokens will be distributed over a period of 5 years. The total VRTX supply is fixed.
Once the total supply of 1 billion VRTX tokens is distributed, no more VRTX tokens will be introduced into the supply.
Vertex tokens will be distributed six months after the mainnet launch, when VRTX-based governance of the Vertex DAO will also commence.
An initial trading rewards program will coincide with the launch of the Vertex mainnet – representing 9.0% of the total VRTX supply. The 9.0% of the VRTX tokens in the trading incentive program at the mainnet launch will be trackable on the Rewards Page of the Vertex app and claimable after six months.
For more details on the Vertex Trading Incentive Program (VTIP), please refer to the Rewards section of the docs.
VRTX Token Supply Distribution
An examination of the annualized VRTX token distribution is displayed in the table below.
Annualized VRTX Token Distribution Schedule
Descriptions of each yearly distribution category of the VRTX supply are available in the section below.
Ongoing Incentives: The Ongoing Incentives represent the protocol’s emissions as part of the Vertex Trading Rewards program. The emissions are capped at a maximum monthly value of $10M USD, with any remaining tokens to be burned – determined according to the average price over the past month.
Monthly VRTX Token Allocation Emissions Breakdown:
VRTX Ongoing Incentives emissions will taper over time throughout the monthly emissions schedule.
Allocations can be vested immediately at a 50% discount with the surrendered amount being burned. Otherwise, tokens will vest continuously over three months.
Initial Token Phase: The Initial Token Phase consists of the inaugural Vertex Trading Incentives Program (VTIP) launching concurrently with the Vertex mainnet. The 9.0% of the VRTX supply earmarked for the VTIP is a one-time allocation of VRTX tokens accruable via trading rewards, where VRTX rewards are allocated to traders according to the VTIP parameters described in the Rewards section of the docs.
Early Investors: The Early Investors are the participants in the Vertex seed round fundraise of $8.5 million from 2022.
Vesting occurs over a timeline that broadly matches 2 - 3 years from project inception.
Initial VRTX Liquidity: The Initial VRTX Liquidity is the 1.5% of the VRTX tokens unlocked at Genesis and earmarked for the initial liquidity of the VRTX-USDC LP pool on Vertex’s integrated AMM.
Market Maker (MM) Liquidity: The Market Maker (MM) Liquidity is the 3% of the VRTX token supply unlocked at Genesis and earmarked for VRTX liquidity market making on third-party exchange venues.
Future Contributors: The Future Contributors allocation is a reserve for future team growth. Once vested, it will be put into the Protocol Treasury for potential use but will not necessarily enter circulation.
Ecosystem Fund: The Ecosystem Fund consists of a reserve supporting Vertex’s ecosystem growth. At Genesis, 50% of the Ecosystem Fund unlocks (4% of VRTX supply), then vests linearly at 1% per year. Once vested, VRTX from the Ecosystem Fund is put into the Protocol Treasury for resource provision for third-party projects building on top of or integrating Vertex Protocol.
Vested VRTX from the Ecosystem Fund held in the Protocol Treasury will not necessarily enter circulation but may be re-staked to generate additional Protocol Treasury reserves.
Protocol Treasury: The Protocol Treasury is the pool of assets overseen by the decentralized Vertex DAO as a strategic reserve to be deployed across a variety of uses, including (but not limited to):
- Operational Costs
- Opportunistic Fundraising
- Ongoing Costs
At Genesis, 50% of the Protocol Treasury unlocks (4% of the VRTX supply), then vests linearly at 1% per year. VRTX tokens in the Protocol Treasury may be staked to generate further treasury reserves and diversify treasury holdings.
Founding Team: The Founding Team allocation represents the core Vertex team’s VRTX holdings. Team allocations vest over a timeline that broadly matches 2 - 3 years after Vertex Protocol’s inception on mainnet.
The VRTX token emissions (i.e., annualized inflation rate) gradually decrease every year following the Token Genesis Event (TGE) until a capped total of 1 billion VRTX tokens have been distributed.
Once the 1 billion VRTX token supply is reached, no more VRTX issuance will occur.
VRTX Token Emissions (first 36 months post-TGE)
You can find a stacked bar display of non-protocol-owned VRTX token emissions below. The graph depicts the VRTX token emissions for VRTX tokens NOT controlled by the Vertex DAO’s governance, including:
- Founding Team
- Early Investors
- Initial Token Phase
- Ongoing Incentives
Non-Protocol-Owned VRTX Token Emissions (first 36 months post-TGE)
The chart below further characterizes the VRTX token emissions in the context of the annualized inflation rate vs. the month after TGE.
VRTX Annualized Inflation Rate vs. Month After TGE (first 36 months post-TGE)
For a comprehensive view of the VRTX token emissions, sorted by monthly emissions per VRTX token allocation category, please refer to the publicly available Google Sheets document here.