HOTCROSS Tokenomics 2.0: Slower Emissions, Delayed Team Release, Ecosystem Adjustments
By the end of 2022 the total HOTCROSS in circulation will be reduced by 32%.
Last month we announced the closure of our Ecosystem Growth Round to bolster our multi-chain efforts, notably Avalanche, Polygon, and Ethereum, as HOTCROSS itself is an Ethereum-native ERC-20. Binance Smart Chain also remains a focus area.
Up until then, we’d been following an outdated metrics model which would have put the circulating supply of HOTCROSS at 371,972,222.22 by the end of 2022, which isn’t great in terms of emissions and asset inflation. With that in mind, we’ve made adjustments to not only take into our new investors but also reduce max emissions by the end of 2022. Here are the current stats that we have now on HOTCROSS:
Expected Current Circulating Supply: 187,000,000 HOTCROSS
Actual Current Circulating Supply: 113,749,999 HOTCROSS
Old Max Circulation by End of 2022: 371,972,222.22 HOTCROSS
New Max Circulation by EOY: 252,715,054 HOTCROSS (32% Reduction)
Total Supply: Stays the same, 500,000,000 HOTCROSS
All of this is covered in detail here, as well as the Hot Cross Token history;
Keep in mind that Max Circulation is theoretical; if there’s no clear use for Protocol or Ecosystem tokens to go into use then we simply do not use them until they are needed. As an example, you’ll notice that in Cross Pool we’ve slowed down those emissions on HOTCROSS to be less aggressive; that’s worked out well. For our countless list of loyal backers, though, those tokens begin to emit as normal again this month via Cross Claim and Cross Vest.
Team allocation delayed with softer vesting—we’re not interested in team tokens before investors;
Seed participants commit to longer vesting—they were given quite a large amount at TGE (more than usual for most projects) and are comfortable with the new schedule;
Private participants commit to longer vesting—they also came into HOTCROSS at a small valuation (FDV) and are comfortable with the new schedule;
Growth Round participants enter—these backers are super-important for seeing us through our development steps during the next year.
For the uninitiated, a quick primer on important market-side dates that got us to where we are today:
January ‘21: Seed Raise;
March ‘21: Private Raise;
May ‘21: TGE on KuCoin and PancakeSwap;
Various listings across all markets (CMC) including Bittrex Global, Gate, MEXC Global, BitMart, XT, Hotbit, Hoo, CoinTiger, LATOKEN, DODO, ApeSwap, Trader Joe, Uniswap, ACryptoS, BiSwap, and BabySwap;
January ‘22: Growth Round Closure;
February ‘22: Cliff and Vesting Kick Back In
There’s a lot more on the token history page that we keep up to date as much as possible. In general, it’s been a fantastic 15+ months of development on the Hot Cross end and we look forward to the coming year ahead as well, as we dig deeper into our multi-chain and cross-chain mission.
Bookmark this page to keep up with emissions or follow along with our API. Both are super-reliable, as well as the CoinMarketCap page! Thanks to our investors and community who have been with us since the start. We look forward to delivering another suite of amazing products during the upcoming year.