$OCT Token Economics and Utility
By: Suzanne Leigh
Tags: Cryptocurrency News, Tokenomics, Web3, Octopus Network, Cryptocurrency

Octopus Network is a brand new multichain cryptonetwork born to bootstrap and run application-specific blockchains, aka appchains.

Octopus Network provides appchains with flexible leased security (LPoS), out-of-box interoperability, one-stop infrastructure, and a ready-to-be-engaged community.

Octopus Network is proud to announce the recent release of $OCT, it’s native token. $OCT was released as an ERC20, with a portion of the tokens bridged to NEAR protocol as NEP 141 tokens.

What is $OCT?

$OCT is the native token of the Octopus Network. It is a fungible, non-inflationary token. $OCT serves three primary functions in the Octopus Network Ecosystem:

Collateral to guarantee appchain security

Governance

Endorsing appchain candidates by upvoting them in the candidate queue

Collateral to Guarantee Appchain Security

The Octopus Network is a decentralized two-sided platform for Web3.0 investors and Web3.0 application teams. Octopus Validators can stake $OCT tokens to validate a particular appchain and set up a node to run that appchain’s protocol. In return, Validators are eligible to receive the respective native token of the appchain they are validating.

Octopus Delegators — $OCT holders — can delegate their $OCT to Validators on the appchain of their choice for a share in the staking rewards of an appchain’s native token.

When Octopus runs in its full capacity, 30–50 appchains will be launched in the network annually. If the long-term equilibrium rate of return of appchain staking is 5% per annum, newly launched appchains alone will bring in about $400M in collateral demands each year.

Governance

$OCT holders are entitled to control the governance of the network by forming the Octopus DAO. A sound and widely participated-in governance will give $OCT holders more stable value expectations and suppress extreme fluctuations in the token price.

Appchain Endorsement

$OCT holders have the right to choose the best appchain projects by upvoting or downvoting them in the appchain candidate queue. So, $OCT holders not only have the opportunity to diversify their portfolio with a variety of token assets by staking on different platforms, they actually get to decide what protocols they would like to have the opportunity to stake on.

$OCT Token Distribution

The total supply of $OCT is fixed at 100 million.

41% of $OCT is distributed to investors:

6% to angel investors

5% to a strategic investor (NEAR Foundation)

15% to institutional investors who participated in Seed private sales

12.5% to institutional investors who participated in Series A private sales

2.5% to IDO investors

59% of $OCT belongs to the Octopus Foundation:

30% of the total supply will be used to incentivize contributors to the Octopus Network Ecosystem and community

24% $OCT is to reward the core team

5% of $OCT is allocated for social media users who help share the value proposition of Octopus Network over 5 years once the mainnet is live.

Token Release and Locking Schedule

All $OCT will be minted before the Octopus mainnet goes live.

30% of $OCT is allocated to 15% Seed + 12.5 Series A + 2.5% IDO. There is no lock for this portion.

5% of $OCT belong to the Octopus Foundation to be used to provide the initial security for appchains. While there is no locking for this portion, it won’t go to circulation because it’s designated for appchain staking.

Of the remaining 65%, the portion including 6% angel investors + 5% the strategic investor + 24% core team +10% Octopus Foundation will be released linearly over the course of three years after the token generation event (TGE).

How Are Funds Used?

The primary objective of the Octopus Network is to bootstrap and run appchains. Therefore, the principal purpose for 100% of the funds raised are to support this goal.

Appchain Rewards

Octopus recognizes that appchain projects are the value creators of the network. While other multichain networks charge admission for appchains, Octopus considers appchain teams to be the most critical part of the community and is very happy to share the benefits of network effect expansion.

Therefore, The Octopus Foundation will award the first 100 launched Octopus appchains with 100k $OCT vested gradually over three years after the launching event.

In addition, the foundation has decided to provide an additional 1M $OCT rewards for the very first ten appchains to recognize them as founding appchains.

The Octopus Accelerator Program

$1M USD per year directly supports 20 appchains through the Octopus Accelerator Program. The Octopus Accelerator Program is a collection of open and composable courses and seminars offered quarterly on topics such as Token Economics, Web3.0 Product Design, Community Building, Blockchain Governance, Crypto Regulation, and Crypto Project Fundraising.

The Accelerator Program is available to Substrate developers and Web 3.0 teams worldwide. At the end of each class quarter, a Demo Day event is held after which The Octopus Foundation selects the top five appchain projects and provides them with a $250k total reward.

About Team Funds

Part of the funds, approximately $1.5M USD per year, is designated for the necessary direct expenditure of the core team for the development, maintenance, and promotion of the Octopus Network’s Ecosystem.

According to this overall distribution rate, the funds raised can meet the expenses of Octopus Network for the next four years.

By distributing $OCT to Web3.0 investors and appchain developers, which form the two-sided market of the Octopus Network, we expect the Octopus Network to grow into the most successful multichain network that enables Web3.0.