EQ
Utility token

EQ enables communal governance of Equilibrium. To be used for product fees, bailout liquidity, and for transaction fees on the Equilibrium Substrate

Key features

Governance token

EQ holders are eligible to select Substrate validators and have a say in system changes

Platform currency

Users pay transaction fees for operations on Equilibrium’s Substrate and product fees in EQ

Bailout liquidity

Liquidity providers can earn yield on securing loans in the system by locking EQ in Equilibrium’s liquidity pool

Staking opportunities

EQ holders receive rewards on their tokens staked to Equilibrium’s governance

EQ essentials

120 M

Initial supply

2.5%

Annual inflation ratio

1:75

Initial NUT-to-EQ swap rate

Cross-chain

Works on every chain bridged with Polkadot

More about EQ tokenomy

EQ distribution mechanics

Sep
2020

September 2020

NUT/EQ token swap

243K NUT (~$5.5 M) swaped for 29.5M EQ tokens (~25% of the total supply)

To the swap webpage
Q2
2021

Q2 2021

Parachain offering

DOT holders can stake DOTs to help Equilibrium win a parachain lease auction and get EQ in exchange

After Equilibrium substrate launch

Liquidity farming

Users who provide liquidity to the system get rewards in EQ

Token allocations

We expect over 55% of EQ tokens to be distributed to the public in one year after the genesis block

Lock DOT for EQ inparachain lease auction1 year vesting period *Parachain Lease OfferingInstitutional investors20%25%5%25%NUT for EQ swap with a bonusand a maximum one yearvesting period **EQ for using the platform,participation in governance,and social activityNUT/EQ token swapLiquidity farming15%10%Two year vesting period *TeamHolds the EQ tokens that
are not yet in circulationTreasury120 MEQ

* Tokens vest monthly starting from TGE. Annual EQ inflation rate is 2.5% from initial volume to ensure adequate liquidity in the market

** 10% allocated on TGE, 90% vested monthly (linear)

FAQ

How is the new EQ token used?

The token is used to perform many of the standard procedures that we are already familiar with, such as using liquidated collateral, paying for Equilibrium’s products, and earning staking rewards. However, it also introduces a series of new functionalities.

What is unique about the EQ token?

The token covers some important new utilities due to our new products. Since we are offering unprecedented, cross-chain interoperability, a key EQ function is that you can use our token on any other protocol. It can also be used for bailouts, to ensure liquidity. Unlike on other projects, our bailouts avoid forced auctions and ensure system stability by securing bad loans before adverse markets happen. Other innovations include using EQ to vote for validators, who play a key role in the system, and for paying transaction fees.

What about providing liquidity to earn EQ?

Yes, liquidity providers earn in EQ. What’s more, we have some unique advantages here -- lenders can continue earning on loans even after margin calls.

Can I earn on holding EQ tokens?

Yes, you can either stake EQ to the Equilibrium’s governance and earn rewards from the Substrate validators or you can transfer them to the bailout pool and earn on securing loans in the system.

How will EQ token allocations be vested?

Team’s allocation will be locked for two years starting from the genesis block. Tokens vest monthly according to the linear curve.

Investors’ allocation will be locked for two years with monthly linear vesting.

NUT/EQ token swap allocation will have no vesting for existing NUT holders and there will be one year lockup for new NUT holders with monthly linear vesting.

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