Octopus Protocol Tokenomics Information

5 min readMay 30, 2021

We are thrilled to receive a phenomenal response from our Octopodes community and honored with the support and trust that you have provided us in the last few months.

To provide you more insights on our project, we have prepared an in-depth guide on the tokenomics of Octopus Protocol native token — $OPS. In this post, we cover the basics of the OPS token, its value accrual, and its utility functions in the Octopus Protocol Ecosystem.

What is Octopus Protocol?

Octopus Protocol is an open-source protocol facilitating unparalleled access and exposure to real-world assets.

The traditional market of financial derivatives is restricted, holds counterparty risks, highly dependent on intermediaries, bound with geographical limitations, and is an overall costly process to engage.

What is needed is an open financial system that enables fair and equal access to derivatives.

Octopus Protocol, built on the Binance Smart Chain (BSC), allows engagement with decentralized derivatives by enabling a platform to create, exchange, settle and manage synthetic assets. Leveraging blockchain technology, the protocol enables a decentralized and open infrastructure for the minting and settling financial derivatives without relying on third-party intermediaries.

You can learn more about Octopus Protocol from our Litepaper.

The $OPS Token

The OPS token is the core economic unit of the Octopus Protocol ecosystem. It is the native utility token of the Octopus Protocol.

Its value accrues from platform fees paid for engaging and accessing the products and services of the Octopus Protocol ecosystem — from the creation of synthetic assets to exchanging derivatives on trading platforms.

The $OPS token acts as fuel to incentivize honest actions in the functioning of the protocol. They will provide access to a multitude of products and services inside the ecosystem. $OPS tokens will also be used as a part of staking mechanisms for holders to receive rewards in exchange for committing deposits and providing liquidity to the protocol. $OPS token holders will govern the Octopus Protocol.

Tokenomics

In crypto, tokenomics reveals how the token would function in the broader ecosystem. It gives a deeper understanding of the supply and demand characteristics of the token.

A part of tokenomics builds a link between the usage of the platform or the services they offer and the crypto token. The factor of a token’s usage and its function will directly impact the price of the crypto asset.

In this post, we specifically focus on the supply and distribution portion of OPS tokenomics.

Community Token Distribution

Over the next few weeks, we will conduct our pre-sale or IDO for OPS tokens. In the pre-sale or IDO, 2% of the total tokens are being offered at the price of $0.15 per token. A total of 3000000 will become immediately available for use by our token holders.

Overview of $OPS tokenomics

In the $OPS token ecosystem, we have a number of participants that are being rewarded for performing their respective roles and duties. In addition to this, OPS tokens are reserved for several functions and activities that enable the overall growth of the Octopus Protocol ecosystem. The pie chart below will give you a broader understanding of the tokens reserved for activities, sale rounds, teams, investors, and developments.

To further dive deep, the use of funds allocated for activities Marketing & PR, Product Development, Partnership Expansions, and Bug Bounty will be further divided as follows.

Founders & Team

The tokenomics of Octopus Protocol is designed such that the team and founders are incentivized to deliver results over a longer time frame. 10% of $OPS tokens are reserved for the Octopus team members and will unlock after 6 months cliff and a linear release over the following months.

Octopus Protocol is founded by Obaid Bin Touq with a proven experience of leading more than 1300 employees. He was listed by the Forbes Middle East as 11th among the most influential Business Leaders in the UAE region. He has served more than 11 years in the Dubai Police Force. Alongside Obaid Bin Touq, Monk serves as the co-founder of the Octopus Protocol. He has more than 10 years of experience in the crypto industry and has invested in several successful blockchain projects.

Network and Ecosystem Rewards

To develop the overall ecosystem of Octopus Protocol, we have reserved 21% of tokens for block rewards, staking, and liquidity mining. Staking operations will reward users with OPS rewards for providing liquidity to the protocol. These tokens will be unlocked with a decreasing inflationary curve, starting with the main net launch on the BSC network.