The API token is the incentive alignment mechanism to create the global read-write protocol for all public blockchain infrastructure, both on layer-ones (i.e., Ethereum, Solana, Filecoin, etc.) and layer-twos (i.e., optimistic rollups, zero-knowledge rollups, etc.). To create as significant and impactful a protocol as possible, the API token must be owned by those who contribute the most important value to the protocol. This includes the users of the protocol (on both the supply and demand sides), as we are staunch believers in the ownership economy, the core team, contributing third-party developers (as well as other third-party builders, such as content generators), and investors who contribute funds to the APIS Community Treasury.
The architecture and token economics of the APIS protocol can also be viewed on the below links:
The API token is used for governance, staking as an API Node and Gateway, dispute resolution of supplied reads and writes, validation of the APIS customized layer-two solution (to maintain the canonical state of the APIS protocol across a global network), and any future protocol-level fee share or burn mechanism. The API token strives to keep inflation as low as possible. However, we recognize that properly allocated inflation can further strengthen a network, as recently evidenced by other prominent crypto projects. Consequently, the token allocation outlined below may be subject to change, but only at the passing of a community vote, as modifications to token issuances can and should be met with strong, well-explained, and unrushed rationale.
The current token allocation and release schedule can be found below,
Currently, all tokens issued through the usage mining program are subject to a one-year lock-up. The purpose of this is to prevent gamification of the program, as our ‘proof of work’ — supplying and purchasing reads and writes from the APIS network — can be more easily gamed than other proof of works — such as burning electricity to generate a hash or supplying capital to a staking protocol. The extended time lock allows for the open search and verification of truthful network activity — ensuring the fair distribution of the usage mining program is instrumental to our protocol’s long-term success.
The API token launch has and, unless voted otherwise, will follow the following two phases:
Phase 1: API Token Generation
The first phase was the crypto version of trademarking your token name — deploying the ERC20 contract that has now minted 100,000,000 API. We first minted only 10,000,000 API, to make sure that we had logged the name. We then minted another 90,000,000 API, after a lengthy voting process on our token distribution allocation and released schedule. No additional API will be issued unless determined by a community vote.
Please view the API token details here:
Etherscan: https://etherscan.io/token/0x16448014A29484b82E3A5A6cF254E5C563A28929
Phase 2: The APIS Mainnet
The launch of the APIS mainnet is a more subjective process — to some, it has already happened; to others, it is a goal to always strive for. This is the nature of decentralization. The APIS mainnet consists of two elements, which will continue to overlap more significantly but will remain reasonably disparate in the interim.
The first element is the APIS core product, what the demand side will use/purchase — these are low and no builders who seek to create blockchain-based products using a simple development suite. The APIS product will begin to be usable by a wider audience this and next month, mainly due to integrations we are currently working on with prominent no/low code platforms, allowing for the growth of the APIS community. Once the APIS product begins to hit critical mass, measured by daily read-write calls by verified APIS accounts. We project the API (demand) usage mining program to start in April or May of this year. The T = 0 point for our usage mining (demand) program, further highlighted here, occurs when at least 5 dapps generate at least 1000 reads or writes per day. There will be a community API token vote to commence our usage mining (demand) program.
The second element is the APIS back-end infrastructure, what the supply side will use/support — these are actors who wish to support the decentralization of the infrastructure underlying the APIS product, distinguishing the APIS as a valid protocol. While the APIS product (demand side) is already ready for some market participants, the decentralization of the APIS back-end will take additional months to execute appropriately. This is the primary reason for the test net in the interim, as referenced above. The test net allows us to develop the APIS back-end mainnet, such that its launch can more closely align with the APIS product mainnet. We expect the APIS back-end to reach a moderate level of decentralization by the fall of 2020, around August. The T = 0 point for our usage mining (supply) program, further highlighted here, occurs when at least 5 APIS nodes with over 10,000 API staked have provisioned at least 1000 reads or writes per day. Like the API usage mining (demand) program, a community API token vote will commence our usage mining (demand) program.
The vesting on tokens outside of the usage mining program is currently set to 0, as it has been factored into the distribution schedule itself. The team tokens have a one-year cliff from the project’s launch (while members of the core team were working together before November 2020, we believe Nov 2020 is an appropriate start-up), and then a two-year vesting schedule. However, new team members, or changes in the output by current team members, may cause specific sub-allocations of the team vesting/distribution schedule to change. The internal allocations of the core team tokens will be published once the core team’s working group has come to terms with the numbers for each participant.
Regarding the Community Treasury and API Lab Distribution, further, lock-ups may also be put in place, depending on future circumstances. Each recipients’ activity to help grow the APIS network will be different, both through direct work with the core team or through capital provisioned to get the network off the ground. As with the Team schedule, the current distribution schedule outlines the earliest that these tokens would be distributed and released. Any updates, as voted by the community, will be made public immediately. However, all updates would only delay the release, benefiting API holders, barring an unforeseen, significant change in circumstances.
The goal of the API distribution is to create a fair, sustainable network. You can follow the growth of our network across our Twitter and Telegram. We’re in a product sprint right now — feel free to reach out to us if you have any ideas. Most of our best ideas will likely come from you, the community.
👋 About THE APIS:
The APIS is an indexing protocol for reading and writing to open networks. Making APIs open and accessible to power a decentralized world.
