Distribution of COLONY Tokens

Token Distributon of COLONY

COLONY Distribution

Maximum Supply: 21,000,000,000 COLONY

COLONY tokens will be issued/unlocked in a predetermined schedule that is designed to last at least 20 years from the date the token is first released.

Please note that this is subject to change as we continue to finalize the design.

Category	Total Tokens	Release Schedule
Fork + Airdrop	1,000,000,000	5 years
Liquidity Provider Rewards	2,000,000,000	20 years
Decentralized Autonomous Organization	2,000,000,000 (1/4 on day 1)	20 Years
Play to Earn (P2E) Rewards	12,000,000,000	20 Years
Validator Rewards	2,000,000,000	TBD
Moondome Rewards	2,000,000,000	TBD

Decentralized Autonomous Organization (DAO)

The DAO allows developers, players, and other stakeholders to shape the Arcade Colony ecosystem. The DAO will be allocated 500M tokens upon creation and then have a 20 year release period to support ongoing growth, marketing, and future opportunities.

Airdrop and Fork

Arcade Colony is being built by the Splinterlands and Genesis League teams. To recognize the original players, a fork and airdrop will be conducted. A snapshot will be taken on February 26th at noon eastern, and tokens will be distributed based on balances at that time.

Fork

The fork will reward accounts which stake GLX on the GLS platform with a 1:1 match with liquid COLONY tokens. The fork will reward accounts who hold GLUSD a 1:1 match with liquid SCRIPT. Accounts must stake a minimum of 10,000 GLX to be eligible to receive COLONY. Accounts must hold 100 GLUSD to be eligible to receive SCRIPT.

Further, accounts holding GLX and GLUSD in liquidity pools on tribaldex will be eligible to receive liquid COLONY and liquid SCRIPT. Accounts which hold a minimum of 10,000 GLX in a liquidity pool will receive twice as many COLONY as they hold in a liquidity pool. Accounts which hold a minimum of 100 GLUSD in a liquidity pool will receive twice as many SCRIPT as they hold in a pool. (There is an exception for the GLX:GLUSD pool where accounts holding a minimum of 10,000 GLX and a minimum of 100 GLUSD will receive a 1:1 amount of COLONY/SCRIPT for every GLX/GLUSD they hold in the GLX:GLUSD liquidity pool).

Examples: If you stake 25,000 GLX on GLS you’ll receive 25,000 COLONY on Arcade Colony.

If you hold 500 GLUSD on GLS you’ll receive 500 SCRIPT on Arcade Colony.

If you hold 10,000 GLX with matching Hive in the GLX:Hive pool then you’ll receive 20,000 COLONY on Arcade Colony.

If you hold 20,000 GLX and 200 GLUSD in the GLX:GLUSD pool then you’ll receive 20,000 COLONY and 200 SCRIPT on Arcade Colony.

Airdrop

There is a total pool of 1 billion COLONY tokens for both the fork and the airdrop. Once the fork is complete (currently estimated at 200M tokens) the remaining tokens (1 billion minus the amount needed for the initial balances) will be airdropped. The airdrop is not a single event, but consists of a series daily airdrop of tokens for five years. These tokens will be awarded to players who stake SPS and GLX.

The airdrop will last five years for players who have SPS or GLX staked in those respective ecosystems.

One change for this airdrop is players will need to have at least 5000 SPS staked in Splinterlands and/or 10,000 GLX in Genesis League Sports to receive either the COLONY airdrop or initial distribution. Further, GLX in the process of unstaking will not be counted for the initial distribution and GLX and SPS in the process of unstaking will not be counted towards the ongoing airdrop.

Additionally, this airdrop will not happen at a consistent rate. This is an exponential airdrop. This airdrop releases an increasing amount of tokens each year. Details TBD.

50% of the daily airdrop will be awarded to SPS stakers and 50% will be awarded to GLX stakers.

Any accounts which intentionally manipulate the price oracle from GLX → GLUSD will be placed on a black list and become ineligible for initial token distribution and ongoing token airdrops.

Liquidity Provider Rewards

Allowing players to get COLONY through exchanges is an important function for users to engage in the many games that will come to Arcade Colony. Initially, liquidity pools will be established enabling players to be able to swap their SCRIPT, GLX, SPS, Binance Coin, Ether, and HIVE tokens for COLONY. Other liquidity pools may be established in time. Rewards will go to accounts which stake those pairs in an established liquidity pool. The first planned liquidity pools will include the following:

Blockchain/Market	Liquidty Pool Pair	Distribution (%)	COLONY per Year
Hive / Hive Engine / Tribaldex	COLONY:HIVE	15%	15,000,000 COLONY
	SCRIPT:HIVE	10%	10,000,000 COLONY
	COLONY:SCRIPT	5%	5,000,000 COLONY
	COLONY:SPS	2.5%	2,500,000 COLONY
	COLONY:GLX	2.5%	2,500,000 COLONY
	SCRIPT:DEC	2.5%	2,500,000 COLONY
	SCRIPT:GLUSD	2.5%	2,500,000 COLONY
BNB Smart Chain (BSC)	COLONY:BNB	10%	10,000,000 COLONY
	SCRIPT:USDC	10%	10,000,000 COLONY
Ethereum Network (ETH)	COLONY:ETH	10%	10,000,000 COLONY
	SCRIPT:(USDC or ETH)	10%	10,000,000 COLONY
Unallocated (to be used for new chains/markets)		20%	20,000,000 COLONY
Total		100%	100,000,000 COLONY / Year

In the future, the DAO can vote to add new trading pairs or change the amount of rewards to any trading pair. The idea is that the DAO can vote on how the COLONY is distributed among the different trading pairs based on market demand. The amount of the daily rewards that each user will receive for each pair will be based on the amount of liquidity provided as a percentage of the total liquidity for that particular pair.

In the future, the DAO will be able to vote and;

• Change the percentage of rewards assigned to each pair.

• Create liquidity for new pairs.

• Increase the number of pairs supported.

Play to Earn Rewards

Play to Earn rewards will be the most dynamic reward pools in Arcade Colony. The amount and release schedule of COLONY tokens available to each game's players will depend on the size of the project, its partnership with Arcade Colony, and its market share. Any tokens remaining at the end of 20 years will be returned to the DAO.

The first game in this ecosystem will be Moonkarts. Moonkarts is a racing game that will utilize NFTs, provide rewards, and be a live action racing game.The Moonkarts game will receive 50M tokens per year for 5 years. Additional reward pools for additional games will be voted on by the DAO.

Validator Rewards

The underlying financial network of Arcade Colony will be operated by validator owners who run validator code on private servers. Any account can operate a validator. Accounts operating a validator that have purchased a license from the Arcade Colony shop are able to earn rewards for their validation. Validator license owner-operators will receive rewards based on the number of active validators that they run. These validators and the licenses will not be available on day one of launch, but will be added shortly afterwards. More details on validators for the arcade colony system will be released after the system is up and running.

Moon Domes

At release, all games will receive a dedicated community Moon Dome. Community Moon Domes are a virtual stadium that will host virtual battles, races, or other battles depending on each individual game. Over time, the community will have an opportunity to purchase private Moon Domes that can host other games. Private Moon Domes (as opposed to community Moon Domes) will earn tokens for all games played in their Moon Dome.