CHI Tokenomics

CHI Initial Supply and Governance

Tokenomics

Chi Protocol is an open-source DAO (Decentralised Autonomous Organisation) project. Chi is managed by people worldwide who hold its governance token, CHI. Through a governance system, holders with locked CHI can influence the direction of the protocol.

CHI is the native token powering Chi Protocol. Its utility comprises all core network functionalities, such as staking, governance, mint, and collateral composition. CHI is an ERC-20 governance token.

CHI holders manage the Chi Protocol and its financial risks, ensuring stability, transparency, and efficiency. The voting weight of CHI is proportional to the amount a voter stakes and the duration for which the CHI is locked in the staking contract. In other words, the greater the amount and the longer the duration of CHI tokens locked in the contract, the more significant the voter’s weighting power.

Token Allocation

At launch, CHI had an initial supply of 100,000,000 tokens, distributed as follows:

Allocation	Percentage	Unlock	Vesting
Mining Rewards	40%	100%	Dynamic issuance based on users' time preferences
Treasury	25%	0%	A 1-year cliff, then linearly vesting over 2 years
Initial Contributors	12.5%	0%	A 1-year cliff, then linearly vesting over the subsequent 2 years
Team & Advisors	11.5%	0%	A 1-year cliff, then linearly vesting over the subsequent 2 years
Chi DAO	8%	100%	Dynamic cliff and vesting based on contracts
Airdrop	2%	100%	To be decided
LP Reserve	1%	100%	Fully unlocked at the time of the Token Generation Event (TGE) as the initial CHI liquidity pool