What is the distribution model of Request (REQ) coins?

Request Network distributes its REQ tokens strategically to stakeholders, with 15% allocated to the team, 10% to the foundation, 5% through seed sales, 20% via private sales, and 50% through a public ICO, ensuring a diverse ecosystem and long-term commitment.

Dec 23, 2024 at 09:40 pm

Key Points:

• Understanding the Request (REQ) token economics
• Exploring the distribution of REQ coins to various stakeholders
• Analyzing the token distribution model and its implications

Distribution Model of Request (REQ) Coins

Request Network operates on the Ethereum blockchain and utilizes the REQ token as its native currency. The distribution of REQ coins plays a crucial role in the project's ecosystem and its long-term success.

1. Team Allocation:

• 15% of the total REQ supply was allocated to the Request team, including founders, developers, and advisors.
• This allocation compensates the team for their efforts in creating and developing the Request Network protocol.
• It ensures their continued commitment and incentivizes them to improve the platform over time.

2. Foundation Reserve:

• 10% of the REQ supply was allocated to the Request Foundation, a non-profit organization responsible for governing the Request Network ecosystem.
• The foundation uses these tokens to fund research, development, and community initiatives that promote the growth and adoption of the platform.
• It provides long-term stability and support for the Request Network project.

3. Seed Sale:

• 5% of the REQ supply was distributed through a seed sale to early investors and supporters.
• This capital raised during the seed phase allowed the Request team to develop the initial platform and secure strategic partnerships.
• Seed investors have typically received a favorable return on their investment as the value of REQ has increased over time.

4. Private Sale:

• 20% of the REQ supply was sold through private token sales to accredited investors.
• These private sales provided additional funding for the development of the Request Network platform and attracted institutional support.
• Private investors have often played a significant role in guiding the project's direction and providing expertise.

5. Public Sale:

• 50% of the REQ supply was made available to the public through an initial coin offering (ICO) in 2017.
• The public sale allowed individuals and retail investors to participate in the early stages of the Request Network project.
• Retail investors have played a vital role in creating a widespread distribution of REQ coins and supporting its liquidity.

Implications of the REQ Token Distribution Model

• The distribution model ensures a balanced distribution of REQ coins among different stakeholders, fostering a diverse ecosystem.
• The allocation to the team and foundation incentivizes long-term commitment and the development of the platform.
• The involvement of private and institutional investors provides financial stability and strategic guidance.
• The public sale enabled widespread adoption and participation in the Request Network project.

FAQs Related to Request (REQ) Coin Distribution

Q1: What is the total supply of REQ coins?
A1: The total supply of REQ coins is 1 billion.

Q2: How much of the REQ supply is currently in circulation?
A2: The current circulating supply of REQ coins is approximately 979 million.

Q3: Is the REQ token supply inflationary or deflationary?
A3: The REQ token supply is deflationary, meaning the total supply gradually decreases over time. This is achieved through a mechanism that burns a portion of REQ coins used in certain platform activities.