With a fixed supply of 12 billion tokens, EQ is the fuel that powers Equilibrium’s blockchain-based ecosystem. By paying transaction and product fees in EQ tokens, users access unparalleled functionality for their operations on Equilibrium — all without worrying about inflation.

In this article, we would like to cover EQ allocations and distributions in greater detail.

Allocations

Here is the breakdown of the entire EQ token supply by allocation with corresponding details. Treasury, Team, and Liquidity farming allocations have not entered the circulating supply yet; combined, they account for ~66% of all tokens. While the other 34% have been allocated one way or another, as described in the table below.

Distribution

Distributing EQ in the Equilibrium ecosystem ensures the token fulfills its role in the ecosystem. EQ facilitates the following functions:

• Governance token — EQ holders have a say in system changes and EQ-weighted voting.
• Platform currency — EQ is the primary token for settling transactions within Equilibrium.
• Bailout liquidity — Liquidity providers can earn yield by locking EQ in Equilibrium’s liquidity pools.
• Staking opportunities — EQ holders receive rewards on their tokens staked to Equilibrium’s governance.

Equilibrium’s success lies in a robust EQ distribution system throughout the ecosystem. We’re committed to driving this forward through rewarding activities such as parachain auctions and public offerings for our currency to keep flowing!

We’ve distributed ~2.79% of the total EQ tokens through various activities. Our first distribution activity incentivized DOT holders to vote for Equilibrium in the Polkadot parachain auctions. We dispersed 2.33% of the total EQ token number.

After the Equilibrium full launch, we established two unique token distribution avenues. Our supportive community received 0.39% of EQ through Phase 1, while those who ventured into our Phase 2 live offering earned a further 0.07%.

We’ve leveraged 1.16% of our token supply to ensure the Equilibrium ecosystem succeeds and spread the word about our DeFi platform! We have teamed up with media partners, advisors, and ambassadors to ensure that everyone knows Equilibrium’s quality.

EQ Offering and its Vesting Schedule

We haven’t recapped the EQ Offering before, and now, once both Phases are over, it’s time to explore it in greater detail:

Phase 1 saw Equilibrium raise 500,000 USDC, with 288 participants. We allocated 65,400,000 EQ as the community reward for helping Equilibrium achieve our target USDC amount. The recently concluded phase 2 offering attracted 187 participants who received 7,954,667 EQ for raising 11,932 DOT. These events will add ~73.5M EQ into circulation after distributed tokens get fully vested.

Here’s the chart showing the release schedule of the entire supply of both Phase 1 and 2 allocations, which combined amount to 0.62% of the entire EQ supply or ~ 74M EQ tokens to be released in the course of the next 18 months: Offering phase 1 roughly splits the entire phase allocation supply into three distinct cliff events in 6, 12 and 18 months respectively, while the offering two allocation gradually vests within first six months and becomes fully vested afterward.

Other distributions and Liquidity farming

We recently celebrated the full launch of Equilibrium with a huge community event! We distributed 3 million EQ tokens to 1,000 lucky people via our Airdrop program on CoinMarketCap. The injected tokens created an exciting ripple effect across our token circulation estimates — increasing the expected circulating volume of EQ.

Equilibrium is also preparing for the Equilibrium Live Contest, our latest distribution event, where participants will win prizes from the 2M EQ reward pool. Interested community members may join as individuals or as a team. To join the Contest, community members must fill out an application form available here.

Starting Q1 2023, Equilibrium is launching its liquidity mining program. It will consist of a series of liquidity bootstrap events in collaboration with partners running liquidity pools with Equilibrium’s native assets (EQD and EQ). All liquidity providers who put their funds into these pools during bootstrap events can expect higher APR. All available mechanics and event timings will be announced on our social media channels.

We expect new EQ holders to spur EQ utilization within the ecosystem. Increased EQ token use will result in higher platform participation and EQ distribution. We plan to integrate more EQ use cases to provide token utilization options and further disseminate EQ into the Equilibrium ecosystem.

Our team is grateful for all our community members and supporters who have made 2022 a fantastic year! Keep up with the latest developments, announcements, and breaking news by following Equilibrium on social media.

About Equilibrium

Equilibrium is a one-stop DeFi platform on Polkadot that allows for high leverage in trading and borrowing digital assets. It combines a full-fledged money market with an order book-based DEX. EQ is the native utility token that is used for communal governance of Equilibrium. xDOT is a liquid and tradeable wrapped DOT that unlocks liquidity of DOT locked in parachain auctions and delivers multiple crowdloan bonuses on Polkadot.

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