Tokenomics, PARA + HKO
Version 0.1 By Parallel Team

Abstract

PARA Token is the native token of Parallel Finance on Polkadot Deployment, distributed among key actors and partnerships in the ecosystem. This paper also details the economic designs of our token, and plans for parachain auctions. The utility token for Heiko (HKO), which is Parallel's sister program, will have the same utilities mirrored on Kusama.

PARA/HKO Token Utility Overview

Parallel Protocol currently has a live webApp where users can access the testnet for the core staking, lending, and borrowing products. On the testnet, we have a few hundred daily active users who test and provide feedback directly to our product team. As of September, we are participating in the Kusama parachain slot auction to win a parachain slot. We intend to launch on mainnet in 4Q’21. Upon launch, daily active users, volumes, and related total value locked metrics will be identified.
PARA/HKO has a number of key utilities functions for its holders and users of the Parallel Protocol:
  • Protocol Governance
    • At launch, PARA/HKO holders will each have the ability to vote on all aspects related to the management and administration of Parallel Protocol, through governance, including governance action, referenda, network upgrades, council elections, and parameter adjustments, integrations, changes to incentives, and all other managerial functions.
  • Transaction Fees
    • At launch, PARA/HKO will also function as a means of satisfying network fees natively. It will be required to execute all transactions, including staking, lending, borrowing, crowd loans, trading, and other peer-to-peer and peer-to-pool arrangements.
  • Network Utility and Incentive
    • PARA/HKO is also utilized to incentivize collators and validators, which is the mechanism that powers the decentralized node infrastructure of the network. New PARA/HKO tokens are minted on a continuous basis to reward collators.
    • PARA/HKO will be used as a token to incentivize users to use our products, part of the liquidity mining program.
  • Security Module Staking
    • PARA/HKO can be staked to a security module to hedge risks in case of staking slashes, and in return, contributors to this insurance pool will be compensated with PARA/HKO tokens. The insurance parameters are determined by PARA/HKO token governance in the event of a slash.
  • Kusama Validator Insurance and Incentivization
    • Kusama non-active validators will need PARA/HKO to increase their chances of being selected as an active validator based on our algorithm. The PARA/HKO will be used as the reserve in the insurance pool to cover for slashing risks.

PARA Token Distribution

PARA Release Schedule

The total supply for Parallel (PARA) token is 10 billion. The initial PARA circulating supply will come from crowdloan rewards vesting and the liquidity mining program.

PARA Allocation Details and Vesting Schedule

Total Supply: 10,000,000,000 PARA
Allocation
Details
Crowd loan
  • 1,500,000,000 (15.00%)
  • Linear release over 24 months
Liquidity Mining
  • 2,500,000,000 (25.00%)
  • Tokens for liquidity mining will be used to incentivize growth and adoption of Parallel
  • Approximately 2-5% is planned to be mined in the first 12 months. The remainder will be mined over an estimated 36 months for protocol developments that our community votes on
Team & Advisors
  • 2,000,000,000 (20.00%)
  • 25% released after 12 month cliff then remainder released over 36 months
Seed Investors
  • 500,000,000 (5.00%)
  • 15 months lock-up then release over 48 months
Series A Investors
  • 1,500,000,000 (15.00%)
  • 12 months lock-up then release over 30 months
Ecosystem Fund
  • 1,500,000,000 (15.00%)
    • 1,000,000,000 (10.00%) will be allocated to the future team and development of the Parallel protocol
  • 25% release at TGE then remaining release over 47 months
Insurance Fund
  • 500,000,000 (5.00%)
  • Transferred to the insurance pool after TGE

HEIKO Token Distribution

HEIKO Release Schedule

The total supply for Heiko (HKO) token is 1 billion. The initial HKO circulating supply will come from crowdloan rewards vesting and the liquidity mining program.

HEIKO Allocation Details and Vesting Schedule

Total Supply: 1,000,000,000 HEIKO
Allocation
Details
Crowd loan
  • 50,000,000 (5.00%)
  • Linear release over 10 months
Liquidity Mining
  • 350,000,000 (35.00%)
  • Tokens for liquidity mining will be used to incentivize growth and adoption of Heiko
  • Approximately 2-5% is planned to be mined in the first 12 months. The remainder will be mined over an estimated 36 months for protocol developments that our community votes on
Team & Advisors
  • 200,000,000 (20.00%)
  • 25% released after 12 month cliff then remainder released over 36 months
Seed Investors
  • 50,000,000 (5.00%)
  • 15 months lock-up then release over 48 months
Series A Investors
  • 150,000,000 (15.00%)
  • 12 months lock-up then release over 30 months
Ecosystem Fund
  • 150,000,000 (15.00%)
    • 100,000,000 (10.00%) will be allocated to the future team and development of the Parallel protocol
  • 4 months lock-up then 25% release after lock-up and remaining release over 47 months
Insurance Fund
  • 50,000,000 (5.00%)
  • 4 months lock-up then transferred to the insurance pool after lock-up
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Abstract
PARA/HKO Token Utility Overview
PARA Token Distribution
PARA Release Schedule
PARA Allocation Details and Vesting Schedule
HEIKO Token Distribution
HEIKO Release Schedule
HEIKO Allocation Details and Vesting Schedule