With the mainnet launch in July 2024, Router Protocol has officially transformed from an interoperability protocol powered by a PoA network into a fully decentralized interoperability protocol powered by a PoS network. This was a massive moment in Router’s journey, reflecting just how far the project has come and its dedication to creating a more decentralized future.
In this article, we’ll break down everything you need to know about ROUTE’s (v2) updated tokenomics — how tokens are allocated, the vesting schedules, and what it all means for the community.
As you already know, in February 2024, a community vote on the $ROUTE 2.0 tokenomics proposal laid the groundwork for this evolution. The vote not only supported Router’s shift to a decentralized layer-1 but also introduced some major changes to the token supply and distribution, ensuring long-term sustainability and ecosystem growth.
Here are the highlights of the approved proposal:
- Adding 10 million $ROUTE tokens increased the total supply from 20M to 30M.
- A token split, boosting the overall supply from 30 million to 1 billion tokens. Each existing $ROUTE will convert into 33.33 new $ROUTE 2.0 tokens. The Total Supply Post-Split is 1,000,000,000.
- New token emissions will begin after a one-year cliff, starting in July 2025, with vesting distributed over five years:
- 60% (6M tokens) of the new inflation (10M) will be allocated to Ecosystem & Community Incentives.
- 30% (3M tokens) of the new inflation (10M) will be allocated to the Router Foundation.
- 10% (1M tokens) of the new supply of the new inflation (10M) will be allocated to future core contributors and team members.
New tokens will not be unlocked for one year from the mainnet launch. Token emissions will begin only after a one-year cliff, starting on July 30 2025, with linear vesting spread out over the next five years.
If you have not already migrated your tokens, please check the detailed guide here.
These upgrades ensure that Router Protocol is well-positioned to scale, fostering growth and decentralization within its ecosystem while aligning incentives for builders, contributors and the community.
A Primer on old V1 Tokenomics
Those interested in understanding the original V1 tokenomics can find the full breakdown in our V1 Tokenomics Blog. This provides crucial context on how ROUTE tokenomics looked prior to migration.
The Route V2. Tokenomics
The tokenomics have evolved in such a way that V1 Tokenomics will continue as is without any change, and the new categories of tokens that have been allocated under Ecosystem Fund, Foundation, and Core Contributors will start distribution one year after the mainnet launch, i. they will start vesting linearly for five years from July 30, 2025.
V2 Tokenomics Breakdown:
Vesting schedule of the ROUTE: https://docs.google.com/spreadsheets/d/1uuQdGLk7HQL9UP6zI-4cVqDsZwecz72ENLY4IFbzD2w/edit?gid=0#gid=0
Ecosystem Fund
The Ecosystem Fund was allocated 5,084,000 V1 tokens. After the mainnet launch of Router Chain, this category became the biggest beneficiary of new tokens because the value of the network is defined by the quality of the ecosystem built around it. There will be an influx of 6 Million old ROUTE tokens to this category starting from July 30, 2025.
- V1 Allocation: 5,084,000 (V1)
- Tokens Post-Split: 169,466,667 (Original equivalent to V2) + 200,000,000 (New Supply)
- Vesting Completion Dates: April 21, 2026 (Original) & July 30, 2030 (New Supply)
These tokens drive ecosystem growth through incentives, community participation, and developer rewards. Initiatives like StakeEase, a cross-chain restaking aggregator, will benefit from these efforts, enhancing adoption and expanding Router’s ecosystem. Developer incentives and public goods funding will support the creation of chain-agnostic dApps and innovative cross-chain solutions. Another important ecosystem project to watch out for is Tagzz, which is developing an omnichain identity based on top of Router Chain. These projects are just the tip of the iceberg, we will be working with many such projects over the next years.
We also want to build a whole ecosystem around CCIF adapters that enable chain abstraction-powered experiences for various DApps.
Additionally, dedicated grants will be provided to empower builders working on impactful projects that push the boundaries of cross-chain interactions. These grants will serve as a key driver for nurturing new ideas and ensuring sustained growth and innovation within Router’s expanding network.
Foundation
The Foundation was previously allocated 4,000,000 V1 tokens, with a cliff of 18 months, followed by vesting over 39 months or beyond, depending on strategic requirements. Post-split, this became equivalent to 133,333,333 tokens (V2). This category will see the introduction of 100,000,000 (V2) tokens from the new supply. Vesting for the new supply will begin with a one-year cliff from the mainnet launch, followed by vesting over 5 years.
- V1 Allocation: 4,000,000
- Tokens Post-Split: 133,333,333 (Original) + 100,000,000 (New Supply)
- Vesting Completion Dates: October 21, 2025 (Original) & July 30, 2030 (New Supply)
The Foundation’s tokens support audit expenses, salaries, market-making expenses, infrastructure costs, legal fees, events, and marketing efforts. As Router expands, the Foundation will play a key role in ensuring sustainable operations, including spending on security audits, bug bounties (like with ImmuneFi), and building a world-class research team. Router has already spent over $1 million on audits, and these tokens will ensure continued dedication to the security and growth of the ecosystem.
Team and Core Contributors
For the team and core contributors, 3,000,000 V1 tokens were allocated. After the split, these tokens became equivalent to 100,000,000 V2 tokens. Additionally, the team and core contributors have been allocated 33,333,333 V2 tokens from the new supply, with a one-year cliff starting from the mainnet launch, followed by vesting over five years.
- V1 Allocation: 3,000,000
- Tokens Post-Split: 100,000,000 (Original) + 33,333,333 (New Supply)
- Vesting Completion Dates: October 21, 2025 (Original) & July 30, 2030 (New Supply)
These tokens are necessary for incentivizing and retaining top talent. Router plans to onboard world-class developers, marketers, and researchers. This will ensure that the project continues to innovate and stay competitive in the rapidly evolving Web3 space.
Conclusion
With Router’s successful migration to a full-fledged layer-1 blockchain and the adoption of the ROUTE 2.0 tokenomics, the foundation is now set for the next phase of growth and innovation. This transition marks a major moment in Router’s journey, allowing it to fully realize its vision of cross-chain abstraction and seamless interoperability.
Products like Nitro and StakeEase have already begun to demonstrate Router Chain’s potential, and the community’s enthusiasm is a testament to the project’s forward momentum. Nitro has processed over $1 billion in volume, 1.3 million transactions, and over 400,000+ users.
The newly implemented tokenomics are structured to ensure sustainable, long-term growth, balancing the needs of core contributors, ecosystem expansion, and community incentives.
LET’S BUILD AND EXPERIENCE CHAIN-ABSTRACTED INTERACTIONS!
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