Token Economics
Version 0.1 By Parallel Team

Abstract

PARA Token is the native token of Parallel Finance on Polkadot Deployment, distributed among key actors and partnerships in the ecosystem. This paper also details the economic designs of our token, and plans for parachain auctions. The utility token for Heiko (HKO), which is Parallel's sister program, will have the same utilities mirrored on Kusama.

PARA Token Utility Overview

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Parallel Protocol currently has a live webApp where users can access the testnet for the core staking, lending, and borrowing products. On the testnet, we have a few hundred daily active users who test and provide feedback directly to our product team. As of September, we are participating in the Kusama parachain slot auction to win a parachain slot. We intend to launch on mainnet in 4Q’21. Upon launch, daily active users, volumes, and related total value locked metrics will be identified.
HKO has a number of key utilities functions for its holders and users of the Parallel Protocol:
    Protocol Governance
      At launch, HKO holders will each have the ability to vote on all aspects related to the management and administration of Parallel Protocol, through governance, including governance action, referenda, network upgrades, council elections, and parameter adjustments, integrations, changes to incentives, and all other managerial functions.
    Transaction Fees
      At launch, HKO will also function as a means of satisfying network fees natively. It will be required to execute all transactions, including staking, lending, borrowing, crowd loans, trading, and other peer-to-peer and peer-to-pool arrangements.
    Network Utility and Incentive
      HKO is also utilized to incentivize collaborators and validators, which is the mechanism that powers the decentralized node infrastructure of the network. New HKO tokens are minted on a continuous basis to reward collaborators.
      HKO will be used as a token to incentivize users to use our products, part of the liquidity mining program.
    Security Module Staking
      HKO can be staked to a security module to hedge risks in case of staking slashes, and in return, contributors to this insurance pool will be compensated with HKO tokens. The insurance parameters are determined by HKO token governance in the event of a slash.
    Kusama Validator Insurance and Incentivization
      Kusama non-active validators will need HKO to increase their chances of being selected as an active validator based on our algorithm. The HKO will be used as the reserve in the insurance pool to cover for slashing risks.

HEIKO Token Distribution

HEIKO Release Schedule

The total supply for Heiko (HKO) token is 1 billion. The HKO circulating supply will come from crowdloan rewards vesting and the liquidity mining program. The circulating supply in the first year will be approximately 5% of the total supply.

HEIKO Allocation Details and Vesting Schedule

Total Supply: 1,000,000,000 HEIKO
Allocation
Details
Crowd loan
    50,000,000 (5.00%)
    Linear release over 12 months
Liquidity Mining
    350,000,000 (35.00%)
    23% will be mined in the first 6 months then the remaining 77% will be mined over 47 months
Team & Advisors
    200,000,000 (20.00%)
    15 months lock-up then release over 24 months
Seed Investors
    50,000,000 (5.00%)
    15 months lock-up then release over 24 months
Private Investors
    150,000,000 (15.00%)
    12 months lock-up then release over 24 months
Ecosystem Fund
    150,000,000 (15.00%)
    25% release at TGE then remaining release over 47 months
Insurance Fund
    50,000,000 (5.00%)
    Transferred to the insurance pool after TGE
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Last modified 9d ago