Router Protocol releases ROUTE 2.0 new version of token economic model

On January 29th, Router Protocol released its ROUTE 2.0 new token economic model. The update aims to promote sustainable growth and expansion of the cross-chain interoperability ecosystem.

The important changes in ROUTE 2.0 include:

1. Increased token supply: proposing to increase the supply of 7.5 million or 10 million new tokens, using a four- or five-year quarterly declining distribution mechanism starting one year later.

2. Staking and validator rewards: implementing a 6-10% inflation rate (determined by community vote and adjusted based on market conditions) to incentivize validator participation.

3. Foundation and ecosystem funds: reserving some tokens for strategic financing to support early-stage funding, audit costs, salaries, and marketing expenses, etc.

4. Community and ecosystem incentives: reserving tokens for community growth and incentives for early projects using Router interoperability stack construction.

Router Protocol emphasizes that these adjustments will not allow any new categories of tokens to enter circulation before June 2025. In addition, the company plans to support at least 100 projects in the next five years, including key investments in developer incentives and incubation for cross-chain DApps development.