After seeking guidance from industry experts on the establishment of the Tagion Foundation, we have been advised to reconsider this initiative.
In short, charitable Web3 foundations are facing increased scrutiny, with authorities questioning their objectives. Such structures may introduce various complexities, including issues related to taxation, VAT, and operations, which may not directly benefit the ecosystem. Based on this feedback, we have opted not to form the Foundation.
To account for the change of direction, we have made necessary adjustments to our tokenomics paper, particularly regarding token allocation.
The revised tokenomics will reallocate the TGN holdings originally designated for the Foundation as follows:
DECARD: 5.7bn TGN
Team & Contributors: 5.3bn TGN
Private Investors: 13bn TGN
Ecosystem Incentives: 8bn TGN
Crucially, we have chosen to decrease the total TGN allocation by 5bn TGN. These TGN will instead be minted into the wallet of the upcoming Tagion Treasury over a 20-year span. Once the Treasury is operational in the coming years, the community will assume governance over these funds.
Also, we have decided to increase ecosystem incentives by an additional 5 billion TGN and allocate an extra 2 billion TGN to DECARD. The latter helps ensure that DECARD, assuming some of the responsibilities of the Foundation, possesses the necessary capital to foster and decentralise the core infrastructure during the initial years of the Tagion Network’s lifespan.
Moreover, tokens not sold to private investors by the time of an exchange listing will be designated for the expansion of Tagion’s core infrastructure. To ensure these funds, along with ecosystem incentives, are directed appropriately and not diverted to unrelated commercial endeavors, the TGNs will be strictly earmarked for ecosystem incentives and core infrastructure growth.
Funds allocated for both ecosystem incentives and infrastructure development will also aid in establishing the foundation for a community-governed Treasury, as outlined in the Tokenomics paper. Rather than utilizing an interim foundation structure, we will therefore be transitioning directly from DECARD to a Treasury-based model. In effect, token supply and governance will become increasingly decentralized.
Lastly, while setbacks like these are unfortunate, they are anticipated when operating in a space where clear regulatory guidelines and precedents are still emerging.
