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Phonon Token Supply

Tokenomics
Comparison of overall ownership percentages of $Grid vs $Phonon.
Phonon DAO has issued 10 billion PHONON tokens for the purpose of managing the protocol, bootstrapping participation, and long-term incentive alignment among all stakeholders. 60.36% of all PHONON tokens are immediately available to current GRID holders via a conversion contract which issues 155 PHONON for each 1 GRID upgraded.
GRID’s initial token distribution was based around a deprecated use case and it is not properly balanced for encouraging active participation in a protocol DAO. To remedy this, GridPlus, GridPlus cofounders, and external investors holding non-circulating GRID have sent the majority of their holdings, 229,557,418 million GRID, to the burn address to collectively reduce their share of total token token distribution by over 71%. This portion of the supply will be allocated to PHONON holders and the new DAO.
Phonon DAO’s treasury has been directly allocated 14.64% of the total supply. 50% of this amount is locked in a vesting contract and will be released over four years via a linear vesting schedule.
In order to flourish, a DAO must be structured to reward the most useful contributors and to allow anyone who wants to participate to be able to achieve a meaningful degree of ownership in the endeavor. This is why majority ownership of the protocol has been put into the hands of the community which can allocate the DAO treasury in a way which has the greatest benefit for the entire group and the success of the Phonon protocol.

Why Convert Gird to Phonon?

GRID holders made this technology possible. This conversion clarifies the value proposition of the token and rebalances the overall distribution towards the community in order to put control of the effort into the hands of the community.
GRID’s non-circulating supply has never been used in any way since initial issuance — this provides the opportunity to structure allocation as desired while aligning incentives with the thousands of current token holders who will want to see Phonon thrive. The DAO will continuously rebalance incentive mechanisms to distribute ownership to the participants contributing the most value.