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Understanding IPMB Tokenomics

Understanding IPMB Tokenomics

April 26, 2024
April 26, 2024

Bridging Gold Investment with Blockchain Innovation

In the evolving landscape of finance and technology, the integration of blockchain with traditional assets like gold presents a unique opportunity for investors. International Precious Metals Bullion (IPMB) stands at the forefront of this innovation, pioneering the tokenization of Real World Assets (RWAs) to combine the stability of gold with the efficiency of blockchain technology.  Here, we delve into the updated tokenomics of IPMB, designed to enhance transparency and foster long-term growth within the IPMB Ecosystem.

Strategic Token Vesting

The Vesting Schedule for IPMB is carefully structured to ensure transparency and security, with the entire process of token allocation and distribution being managed purely on-chain.  More specifically, the entire process is facilitated through a dedicated Vesting Smart Contract that was designed and implemented by IPMB, to govern the release of Founders’ allocation of IPMB tokens.  After the initial 8-month cliff period post-Token Generation Event, where founders receive 1% of their tokens, the remaining 99% is distributed gradually over 99 months via monthly releases.  This systematic distribution is fully handled through the Vesting Smart Contract, ensuring a controlled and transparent introduction of tokens into the market.

For complete transparency, the Vesting Smart Contract is deployed on the Polygon  network accessible here: 0xecc9fc8e77f1c992d9db568761a69af453337950, allowing stakeholders and interested parties to verify all transactions directly on the blockchain. This on-chain management underscores IPMB’s commitment to high governance standards and security in its token distribution strategy.

Overview of Token Vesting Schedule

Cliff Period

  • Following the Token Generation Event (22 Aug. 2023, TGE), a Cliff period of 8 months was enforced.  At the end of this period, founders receive an initial 1% of their total token allocation, signalling the start of token distribution.

Vesting Distribution:

  • Following the Cliff period, the remaining 99% of the founders’ token allocation is distributed over the subsequent 99 months.  This gradual release is structured to occur monthly, ensuring a steady and controlled circulation of tokens into the market.

Secure Transaction Process:

  • Token distribution is managed through the Vesting Smart Contract that requires interaction every 30 days.  This process is facilitated by a Gnosis Safe setup, which operates under a 3 out of 4 signatures rule, including the signature of the IPMB Chief Operations Officer. The Gnosis contract is specifically responsible for interacting with the Vesting Smart Contract, thereby ensuring high security and governance standards.
Founders Vesting Schedule – 8 Month Cliff, then 1% Monthly
Total Tokens200,000,000Initial Release – 1%Subsequent release 1%
Token Generation Event (TGE)Tuesday, August 22, 2023 – Tx hash
Cliff Period Lock from TGE in Months8 months, then initial release 1% (24th of April 2024) – Tx hash
100% Allocationin 100 months – (approx. 22 July 2032)

> Our aim with the graph is to show the tokens in circulation based on the vesting schedule

Transparency and Security Measures

Multi-Signature Wallets:

  • Utilising a Gnosis Safe Smart Contract; a leading platform for multi-signature wallets, IPMB enhances security by requiring multiple approvals before any transaction can be processed.

On-chain Vesting Smart Contract 

  • The Vesting Smart Contract exclusively manages the custody of the 85,500,000 IPMB Founders’ tokens on-chain.  Each transaction initiated on this contract is controlled by a Master Gnosis Safe, which operates under a 3 out of 4 signatures rule, including the mandatory signature of the IPMB Chief Operations Officer.  This setup ensures a secure and governed approach to token distribution. 

On-chain Cliff Vesting Schedule: 

  • The end of the Cliff period has initiated the creation of the Gnosis Safe contract, and the deployment of the Vesting Smart Contract, marking the commencement of token distribution (1% of Founders’ tokens).
  • The remaining 99% of Founders’ tokens are distributed over a period of 99 months.  This gradual distribution strategy promotes sustained market equilibrium and prevents adverse price fluctuations.  Every 30 days, the contract releases 1% of tokens back to the founders’ wallets, requiring 3 out of 4 signatures for authorisation.  This ensures consistent and controlled token distribution, fostering long-term commitment and project sustainability.

Publicly Accessible Founder Wallets

  • For full transparency, the wallet addresses of the founders are publicly disclosed:
    • John Vakis (Founder & CEO): 0xdf1768d2B55fDfa7Fac67e625ee027a7691114F4
    • Mihai Albu (Co-Founder & Director): 0x409EC6D540792CB73A769113cC4d9bE5355EEe39
    • Scott Pagel (Co-Founder & Head of Investment Strategy): 0x407f4081f2019BA504844DE557a37AD3deD0de40

*These wallet addresses are enforced on the Vesting Smart Contract and cannot be altered without authorization. All actions are recorded on-chain for full transparency and auditability purposes.

Disaster Recovery Provision:

  • In case of lost or inaccessible private keys, a redundancy plan allows access to locked funds only after 100 months from the Vesting Smart Contract deployment date.

Smart Contract Addresses

Benefits for Token Holders

Reduced Sell-off Risk

  • Gradual token release minimises sudden sell-offs, enhancing price stability and confidence.

Alignment of Interests:

  • Extended commitment from founders aligns their interests with the community, fostering project success.  Our tokenomics are carefully crafted to ensure alignment of interests between the team and our community of investors and token holders.

Controlled Token Release:

  • Prevents market manipulation and supports sustainable token value appreciation.

Enhanced Trust and Engagement:

  • Transparent and fair distribution mechanisms build community trust and support a vibrant ecosystem.

The updated tokenomics of IPMB demonstrate our firm commitment to enhancing value for our token holders and fostering innovation in the fintech sector.  These strategic changes are designed to benefit not only our existing stakeholders but also to attract new participants who are eager to join us on our path toward a decentralized and inclusive financial future.

IPMB: A Convergence of Gold and Blockchain

IPMB enables access to the gold market through a modernised approach but also provides the security and transparency benefits of blockchain technology.  IPMB’s dual-token model allows for direct access to physical gold while leveraging the speed and security of blockchain, making it an attractive option for both traditional market participants in gold and those interested in the latest financial technologies. For those interested in the intersection of traditional assets and digital innovation, IPMB presents a unique opportunity.