Token Utility

Union will utilize its own coin, $U, for various essential functions. It will serve as the medium for gas in the network and secures the protocol through bonding, staking, and slashing mechanisms. Further, $U will be fundamental to the operation of Union's cross-chain features, such as transfers, swaps, and message delivery, while also ensuring network security.

$U token attention and value accrual will take place across three stages:

• For token ownership incentives, $U holders will receive airdrops from premier launch partners such as Movement, Bera, etc. slated for Q4 2024 and Q1-Q4 2025.
• To increase bonding of the token and reduce sell pressure, $U is staked by validators in our proof generation network as well as proof verification network. Validators must stake U to earn fees on Union.
• $U is the gas token on the Union network, protocol revenue will be used to burn supply and return value back to users.

Token Allocation

At the genesis block, 1 billion tokens will be issued and allocated to the following stakeholders and programs.

• Team Tokens & Advisors: Existing employees and advisors
• Investors: Seed and Series A .
• Treasury: Union operational treasury and future employee incentives.
• Community: Testnet/dashboard/wallet/developer grants, liquidity rewards and other incentive programs, managed by the Union Labs Foundation. 30% of the total supply will be set aside from Community programs, to be allocated towards an insurance fund and insurance programs.
• Airdrops: Union will do Airdrops in 3 phases. First phase of the airdrop will take place at TGE, with 50% of the allocated supply unlocking at t=0, and remaining 50% unlocking in a vested manner. The vesting duration will dynamically shorten for those users who engage with our product. This will have two benefits: (1) it will reduce the sell pressure on t=0, (2) it will incentivize users to further engage with Union’s bridge

Inflation

Initial 8% intended to decrease by 10% each year until an annual inflation floor of 1.5% is reached.

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