Key Highlights
- Owlto Finance has launched its native $OWL token to support governance, revenue sharing, and user fee discounts.
- The protocol is distributing 15% of the total 2 billion token supply to community airdrops.
- A one-year lock-up period for team and investor allocations ensures long-term ecosystem stability and alignment.
Owlto Finance, a multichain interoperability protocol, officially launched its native token, $OWL, on Thursday. The token is aimed to serve as the main engine for its cross-chain ecosystem.
According to the announcement, the token was introduced to bring together the interests of its community, investors, and developers while promoting decentralized governance and revenue sharing. By offering this native asset, Owlto aims to shift from a centralized service provider to a community-owned infrastructure that connects liquidity across different blockchain networks.
The primary uses of the $OWL token fall into three areas: governance, revenue sharing, and discount fees. Voting rights for critical applications of the protocol are allowed for token holders. Further, the stakeholders of the $OWL token are rewarded a portion of the fees paid through the interoperability engine of the protocol on-chain.
For the regular user, being a token holder provides a distinct benefit in the form of reduced transaction fees for all supported blockchains.
Total $OWL distribution
In the token distribution, there is a total of 1 billion $OWL tokens. This is attributed to different individuals and entities. 22% is given to the community, 15% to airdrops, and 7% of these tokens is solely attributed to CEX airdrops.
Other remaining percentages are attributed to investors at 15.67%, the development team at 15%, the ecosystem fund at 10.33%, liquidity at 7.5%, advisory at 5%, and lastly, marketing at 2.5%.
According to the protocol’s release schedule, $OWL will start with an initial circulating supply of 16.5%. To promote long-term stability, team, investor, and advisor allocations will have a one-year lock-up period, followed by a linear unlocking process.
Protocol market growth
Owlto Finance entered the market two years ago to address the isolation among different Web3 networks. Since it began, the project has grown from a small team of builders to a platform supporting 3 million users and over 13 million transactions.
The protocol has concentrated on building fast and permissionless cross-chain routes, aiming to be a key player in the multichain era, where liquidity is often spread across various layers and ecosystems. The $OWL token is set to be issued on both Ethereum and BNB Chain, allowing access across two major ecosystems from launch.
Road to decentralization
While the date of the token generation event has not been announced, the launch of the token marks an important step for the protocol on the road to decentralization. The existence of a token is expected to encourage more developers to participate in the protocol, as well as help heavy users stick to the Owlto ecosystem due to the proposed fee discounts.
The protocol demonstrates its intention to secure its value with its users by distributing more than half of its total supply to its community. As the industry progresses toward a more connected multichain landscape, the success of Owlto’s new token will likely depend on its ability to keep high transaction volumes and distribute revenue effectively to its holders.
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