OVER Tokenomics
OVER is Overlayer's governance and ecosystem coordination token. Its role is separate from Overlaid Assets and their staked representations: OVER does not represent their backing or provide an entitlement to their staking yield.
The token model combines a fixed maximum supply, defined allocations and release schedules designed to distribute tokens progressively.
Maximum supply
OVER has a maximum supply of 1,000,000,000 tokens. Ecosystem incentives, community distributions and other allocations come from this original supply; additional tokens cannot be minted above that limit.
Specified mechanisms, including VISION's Claim Game, can permanently burn tokens. Burns reduce the tokens available over time rather than creating new issuance capacity.
What OVER is designed to support
OVER connects governance participation with ecosystem incentives and liquidity development.
Governance
The governance model begins with Foundation-led execution, while token holders participate through signaling and community governance. Broader binding participation is intended to expand progressively as governance develops.
Holding OVER does not mean that every protocol parameter is already controlled directly by token-holder votes. For authority, execution and administrative controls, see Governance & Controls.
Ecosystem incentives and liquidity
Predefined OVER allocations support liquidity incentives, community participation, integrations, partners and builders.
These distributions are separate from the lending yield earned by the backing of Overlaid Assets. OVER incentives support participation; they are not the source of staking yield.
Allocations and release schedules
Supply is divided between Investors, Core Contributors, Ecosystem and Foundation/Treasury. All percentages below refer to the original maximum supply.
TGE means the Token Generation Event. Release schedules use TGE as their reference point.
| Category | Allocation | Share of total supply | Release schedule or purpose |
|---|---|---|---|
| Investors | Liquidity Warrants | 10% | No cliff; 48-month linear vesting, with the first 1/48 available at TGE. |
| Investors | Seed Round | 5% | No cliff; 48-month linear vesting, with the first 1/48 available at TGE. |
| Core Contributors | Team | 30% | 12-month cliff, followed by 48 months of linear vesting. |
| Ecosystem | Liquidity | 2% | Purchase-only market inventory for the first 12 months; remaining inventory becomes available for discretionary sale at Month 12. |
| Ecosystem | Partners | 8% | 20% of this allocation available at TGE; the remainder vests linearly over 12 months. |
| Ecosystem | Incentives | 10% | Distribution begins at TGE and proceeds progressively over four years. |
| Ecosystem | VISION Airdrop | Up to 10% | Effective distribution depends on the final Reward Pool and Claim Game choices. |
| Foundation | Treasury | 25% | Five releases of 5% of total supply at Months 8, 20, 32, 44 and 56. |
Liquidity allocation
The 2% liquidity allocation is included in circulating supply at TGE, but is restricted to fulfilling market purchases during the first 12 months. Any remaining inventory becomes available for discretionary sale after that period.
The chart below counts this allocation at Month 12, when the restriction ends. It does not track purchases from the liquidity inventory before that date.
VISION distribution
Up to 10% is reserved for VISION, but the full amount is not automatically distributed. The final Reward Pool ranges from 1% to 10% of total supply, based on Season Average TVL.
Participant choices determine how allocated tokens become claimable, vest over time, are redistributed or are permanently burned.
For the pool calculation, see Reward Pool & Season TVL. For release options, see Claim Game & Vesting.
OVER Release Schedule - Maximum-Release Scenario
The chart models the full allocation over 60 months, with distribution assumptions for the Treasury and VISION. It illustrates releases under those assumptions, not observed circulating supply or future market sales.
Chart data: cumulative share of maximum supply, by allocation, every four months
| Month | Investors | Team | Liquidity | Partners | Incentives | VISION Airdrop | Treasury | Total |
|---|---|---|---|---|---|---|---|---|
| TGE | 0.3% | 0.0% | 0.0% | 1.6% | 0.0% | 0.0% | 0.0% | 1.9% |
| 4 | 1.6% | 0.0% | 0.0% | 3.7% | 0.8% | 3.3% | 0.0% | 9.5% |
| 8 | 2.8% | 0.0% | 0.0% | 5.9% | 1.7% | 6.7% | 0.0% | 17.0% |
| 12 | 4.1% | 0.0% | 2.0% | 8.0% | 2.5% | 10.0% | 1.7% | 28.2% |
| 16 | 5.3% | 2.5% | 2.0% | 8.0% | 3.3% | 10.0% | 3.3% | 34.5% |
| 20 | 6.6% | 5.0% | 2.0% | 8.0% | 4.2% | 10.0% | 5.0% | 40.7% |
| 24 | 7.8% | 7.5% | 2.0% | 8.0% | 5.0% | 10.0% | 6.7% | 47.0% |
| 28 | 9.1% | 10.0% | 2.0% | 8.0% | 5.8% | 10.0% | 8.3% | 53.2% |
| 32 | 10.3% | 12.5% | 2.0% | 8.0% | 6.7% | 10.0% | 10.0% | 59.5% |
| 36 | 11.6% | 15.0% | 2.0% | 8.0% | 7.5% | 10.0% | 11.7% | 65.7% |
| 40 | 12.8% | 17.5% | 2.0% | 8.0% | 8.3% | 10.0% | 13.3% | 72.0% |
| 44 | 14.1% | 20.0% | 2.0% | 8.0% | 9.2% | 10.0% | 15.0% | 78.2% |
| 48 | 15.0% | 22.5% | 2.0% | 8.0% | 10.0% | 10.0% | 16.7% | 84.2% |
| 52 | 15.0% | 25.0% | 2.0% | 8.0% | 10.0% | 10.0% | 18.3% | 88.3% |
| 56 | 15.0% | 27.5% | 2.0% | 8.0% | 10.0% | 10.0% | 20.0% | 92.5% |
| 60 | 15.0% | 30.0% | 2.0% | 8.0% | 10.0% | 10.0% | 25.0% | 100% |
The first four Treasury tranches are modeled as entering circulation in 12 equal monthly installments after their respective unlocks. The final tranche, unlocked at Month 56, is modeled over four months, reaching full distribution at Month 60. These are chart assumptions, not mandatory Treasury expenditure schedules.
| Treasury tranche | Unlock | Modeled monthly distributions | OVER per installment |
|---|---|---|---|
| First | Month 8 | Months 9-20 | Approximately 4,166,667 |
| Second | Month 20 | Months 21-32 | Approximately 4,166,667 |
| Third | Month 32 | Months 33-44 | Approximately 4,166,667 |
| Fourth | Month 44 | Months 45-56 | Approximately 4,166,667 |
| Fifth | Month 56 | Months 57-60 | 12,500,000 |
For VISION, the chart assumes the maximum 10% pool, all participants choosing Long-Term Vesting, and all tokens claimed, with no burns. For illustration only, its 365-day vesting period is aligned with Months 0-12; this does not establish the actual vesting start date. This maximizes the final VISION distribution, not the amount released at every earlier point: Fast Claim can release more initially but also burns tokens.
Investor allocations are modeled as 48 equal monthly installments, the first at TGE. Incentives are spread evenly across Months 0-48. Under the combined assumptions, modeled releases reach 100% at Month 60. Actual circulation can differ because of claim choices, burns, distribution timing and liquidity purchases.
Protocol-funded buybacks
Under the standard economic model, 10% of distributable protocol revenue is allocated to purchasing OVER from the market.
Buybacks connect protocol activity with demand for OVER without requiring additional token issuance. Their size depends on realized revenue; they do not guarantee a purchase volume, token price or return to holders. Holding OVER does not create a contractual claim on protocol revenue or buyback proceeds.
During VISION, the performance fee is instead allocated entirely to the Foundation under the season-specific fee model.
For the applicable fee conditions, see Fees.