Token Dilution & Future Issuance Model
Introduction
The NELX tokenomics framework is designed to balance fairness, growth, and decentralization. Our dilution and issuance strategy ensures that as new tokenholders join the ecosystem, early participants are protected from excessive dilution through a pro-rata allocation mechanism — echoing traditional corporate preemptive rights, adapted for the decentralized Web3 environment.
All issuance decisions are governed by the NELX DAO, with proposals subject to community vote.
Initial Token Distribution
The total initial supply of 400,000,000 NELX tokens was distributed as follows:
Private Sale / Seed
3.75%
15,000,000
Public Sale
12.5%
50,000,000
Core Contributors
15.625%
62,500,000
Team & Developers
12.5%
50,000,000
Community Incentives
5.125%
20,500,000
DAO Treasury
12.5%
50,000,000
Advisors
5%
20,000,000
Partnerships & Ecosystem
2.5%
10,000,000
Strategic Reserve
35.5%
142,000,000
Total
100%
400,000,000
This allocation reflects the strategic importance of decentralization, early contribution, community growth, and DAO governance.
Token Issuance & Dilution Process
To support ecosystem growth, additional NELX tokens may be issued. Each issuance must be approved by the DAO through a governance vote. The goal is to welcome new stakeholders (through token sales or partnerships) while fairly protecting early participants.
📦 Example: First New Issuance (100M Tokens)
The DAO approved a new issuance of 100,000,000 NELX, distributed as follows:
50,000,000 NELX (50%) — Sold to new tokenholders
50,000,000 NELX (50%) — Airdropped to existing tokenholders pro-rata to reduce dilution
This approach resulted in a new total supply of 500,000,000 NELX.
Dilution Mitigation: Pro-Rata Allocation
Instead of allowing full dilution, 50% of the new issuance was used to compensate existing holders. This mirrors traditional preemptive rights by maintaining their relative ownership stakes as closely as possible.
🧮 Final Ownership Breakdown (After Issuance)
Private Sale / Seed
8.57%
Public Sale
25.71%
Core Contributors
21.43%
Team & Developers
10.29%
Community Incentives
6.00%
DAO Treasury
6.86%
Advisors
3.43%
Partnerships & Ecosystem
3.43%
New Tokenholders
14.29%
Thanks to the pro-rata distribution, existing stakeholders retained a majority stake (85.71%) even after the issuance — reinforcing long-term alignment and fairness.
Key Principles
🔐 Decentralized Governance: All new issuance decisions are made by the NELX DAO.
⚖️ Dilution Protection: Pro-rata airdrops preserve ownership fairness.
📈 Sustainable Growth: Issuance funds are used to expand the protocol and ecosystem.
🔄 Flexible Treasury Tools: Future issuance models may include vesting, auctions, or bonding curves — always DAO-controlled.
Future Outlook
NELX will continue to evolve through DAO-led proposals, with clear frameworks for token issuance, vesting, and treasury utilization. This approach ensures adaptability while maintaining transparency and alignment with early contributors and community builders.
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