Understanding Scroll Tokenomics: A New Era of Decentralization

Scroll is taking a significant leap towards decentralization with the introduction of its native token, SCR. This initiative is part of Scroll's broader vision to grant individuals worldwide access to a globally distributed network of applications and services. As part of this mission, SCR will soon be available.

Key Details of the SCR Token Launch

• Token Name: Scroll (SCR)
• Total Supply: 1,000,000,000 SCR
• Airdrop Snapshot Date: October 19, 2024
• Launch Date and Airdrop Claim Availability: October 22, 2024

The Rationale Behind SCR's Launch

Scroll is poised for its next evolution, focusing on developing scalable and secure infrastructure to foster real-world adoption and global distribution. The SCR token is pivotal in this mission, particularly regarding the design of the core protocol and the long-term viability of the Scroll ecosystem.

SCR will facilitate the decentralization of governance, provers, and sequencers, becoming a fundamental component of Scroll’s developmental roadmap. Moreover, it unlocks new design opportunities that enhance user experiences and empower every Scroll user to become an owner and guardian of the Scroll protocol.

Utility and Value of the SCR Token

SCR serves as the primary governance tool for the protocol and is expected to transition into a utility token as Scroll progresses toward greater decentralization. Three critical rights within the rollup protocol design must be decentralized, and SCR will play a role in all these aspects:

1. Governance Rights:
   Scroll will initially decentralize governance through the Scroll Decentralized Autonomous Organization (DAO). This approach is crucial for distributing authority within the community, ensuring that the network remains impervious to capture by any centralized body.
2. Proving Rights:
   Following the decentralization of governance, the focus will shift to decentralizing the prover. For the protocol to sustain itself in the long term, it is essential to incentivize external participants to operate provers and optimize performance. SCR will align the interests of the miner community, fostering a robust prover network.
3. Sequencing Rights:
   After establishing and testing the prover network, the next step is the decentralization of the sequencer, responsible for transaction ordering and layer 2 block production. This function demands strong guarantees on liveness and resistance to real-time censorship. SCR will be vital in designing mechanisms to ensure sequencers deliver finality guarantees, enhancing user experience.

In addition to these roles, SCR can significantly impact aligning community interests, ecosystem projects, and contributors. Future communications will elaborate on the research directions aimed at providing the most robust and user-friendly rollup experience for the global community.

SCR Token Distribution Strategy

The SCR token distribution has been meticulously crafted to optimize community engagement and extend the global reach of applications and services.

Airdrops (15%)

Scroll envisions becoming the most widely distributed and community-driven rollup. To support this goal, it is allocating 7% of the total token supply for the initial airdrop, with an additional 8% reserved for future airdrops over the next 12-18 months.

The primary objectives of the first airdrop are to reward active on-chain participants in the Scroll ecosystem and acknowledge the community of researchers and contributors who have significantly advanced Scroll's protocol development and growth.

Ecosystem and Growth (35%)

A substantial 35% of the total token supply is dedicated to nurturing the ecosystem and fostering the Scroll community.

This allocation is intended for distribution among participants who add value to the ecosystem, furthering Scroll's mission of equitable financial access and opportunity for all. Initially overseen by the Scroll Foundation, this allocation will eventually transition to the Scroll DAO for distribution.

Among this allocation, 10% will be directed to the Scroll DAO Treasury, with 20 million SCR unlocking at the token's launch to fund crucial community initiatives. The remaining 80 million SCR will be released over the subsequent four years.

Recognizing Binance's status as the leading platform for token assets, 5.5% of the total supply will participate in Binance Launchpool and pre-market activities, aiming to widen Scroll's reach to a global audience. This partnership is particularly significant for underserved regions, as it offers enhanced on-off-ramp solutions.

The remaining 19.5% within the Ecosystem and Growth allocation will provide 25 million SCR at the launch for distribution to aligned ecosystem partners, with the rest gradually unlocking over four years.

Scroll Foundation Treasury (10%)

The Scroll Foundation Treasury is allocated 10% of the total token supply, with an initial 20 million SCR available at the launch to support ongoing operations.

The remaining 80 million SCR will unlock over four years, with the Foundation playing a crucial role in guiding the early development of the Scroll DAO and advocating for community interests.

Core Contributors (23%)

Recognizing the invaluable contributions of core team members, future hires, and advisors, 23% of the total token supply is allocated to this group.

The vesting schedule for these tokens is based on their service duration, with unlocked tokens starting after the first year of SCR's launch and fully releasing by the end of the fourth year.

Investors (17%)

Finally, 17% of the total supply is designated for investors who played a critical role in making the Scroll project feasible. Similar to core contributors, these tokens will commence unlocking after the first year and will be fully accessible by the end of the fourth year.

Conclusion

The launch of the SCR token marks a pivotal moment in Scroll's journey toward decentralization and broader adoption. By carefully structuring its tokenomics, Scroll aims to create an equitable and community-driven ecosystem that empowers users and fosters innovation. 

As Scroll moves forward, the SCR token will play a vital role in shaping the future of decentralized applications and services, ensuring that the platform remains accessible to all.

FAQ

Q: What is the SCR token?
A: The SCR token is the native cryptocurrency of Scroll, designed to facilitate governance, proving, and sequencing within the Scroll ecosystem as part of its decentralization efforts.

Q: What is the total supply of SCR tokens?
A: The total supply of SCR tokens is 1,000,000,000.

Q: When is the airdrop for SCR tokens?
A: The airdrop snapshot will occur on October 19, 2024, with the token launch and airdrop claim availability set for October 22, 2024.

Q: How will SCR tokens be distributed?
A: SCR tokens will be distributed across various allocations: 15% for airdrops, 35% for ecosystem growth, 10% for the Scroll Foundation Treasury, 23% for core contributors, and 17% for investors.

Q: What rights does the SCR token provide?
A: SCR provides governance rights, proving rights, and sequencing rights, enabling users to participate in the decentralized decision-making process of the Scroll protocol.

Q: How does the SCR token support decentralization?
A: The SCR token supports decentralization by distributing governance authority to the community, incentivizing external parties to operate provers, and ensuring that sequencers maintain transaction integrity.

Q: What is the role of the Scroll DAO?
A: The Scroll DAO will manage governance and decision-making processes within the Scroll ecosystem, ensuring that power is distributed among community members rather than concentrated in a centralized entity.

Q: How can users participate in the SCR airdrop?
A: Details regarding eligibility and claiming the SCR airdrop will be shared closer to the airdrop date, encouraging active participation in the Scroll ecosystem.