Roll holds 1% of all social tokens issued. You can see the economic parameters of social tokens issued on Roll here. Roll uses this in several ways -
- Roll helps issuers make markets by providing liquidity on decentralized exchanges (DEXes) like Uniswap. This helps new members easily join the community and gives an option to existing members to exit.
- Roll gives out social tokens to strategic users, investors, advisors, thought leaders, and community members in its network. This is a way to seed the initial community around a social token with the right members.
- Roll sets up its own earn codes to distribute social tokens from its reserves to the broader community.
For these reasons, Roll's share of social tokens currently does not vest but is instead released to us at issuance in full. This is especially useful for the first point on market making - without this reserve, we would not be able to market make with enough liquidity on many of the social tokens on Roll.
Therefore, outside of market making activities, Roll commits to not selling more than 20% of its reserve at launch - the same as what vests to the creator, and subsequently following the same vesting pattern as the creator, i.e. around 2% per month thereafter. Therefore, at launch, Roll will not sell more than 20% of 100K tokens i.e. 20,000 tokens, and 2% of 100K tokens i.e. 2,000 tokens per month thereafter.
We want to make sure that the market has the right expectations around what Roll does with its share of social tokens issued on Roll.
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