Token Transparency Commitment Statement
Composable Foundation (“Composable”) remains committed to transparency at all levels of the Composable ecosystem and our infrastructure offerings. Thus, we provide the community with the following information on the Picasso (PICA) token holdings, actions, and supply.
Organization Objectives & Token Use Statement
Picasso's native PICA token is fundamental to governance, user dynamics, and network usage on Picasso. Some of the use cases for the PICA token are (1) gas fees, (2) governance, (3) validator and collator staking, (4) oracle staking, and (5) liquidity provisioning. Beyond these intended functionalities for user or token holders, the PICA token also serves to (1) enhance the Picasso L1 Cosmos SDK chain and Picasso Kusama (parachain’s) sustainability, and (2) support growth, development, and security. More details on these potential ecosystem benefits can be found below:
Enhancing the Picasso Parachain’s User Appeal and Sustainability
Composable has allocated 10% of the PICA token supply to “Ecosystem Incentives”, which include rewards for participating in a number of future actions on the Picasso network. These are programmatic incentives to bootstrap network growth such as running an oracle on. A subcategory of these incentives are the so-called “Infrastructure Tokens”, currently comprising approximately 0.72% of the total token supply of PICA (72,132,700 tokens) and dedicated to rewarding people running infrastructure for the Composable Ecosystem.
Further, 30% of the PICA token supply was originally allocated to participants of the Picasso Kusama crowdloan. The Picasso crowdloan and the user support therein were critical in helping secure its Kusama parachain slot. Finally, 15% of the total PICA token supply is targeted to be released as rewards for participants in Liquidity Programs.
Total supply refers to the number of coins or tokens that currently exist and are either in circulation or locked somehow. It is the sum of coins that were already minted (or issued) minus the total number of coins that were burned or destroyed.
Therefore, the total supply refers to both the circulating supply and the tokens that are yet to hit the open market including tokens that are being held under a lockup or vesting period, which typically follows a private sale or Token Generation Event. Coins or tokens that are eventually burned are excluded from the total supply.
Supporting Growth, Development, and Security on Picasso
Tokens from Composable’s “Treasury” PICA allocation may be used for a number of initiatives towards advancing the Picasso ecosystem, network security, application development and other forms of utility. This distribution involves the Picasso Network treasury receiving transaction fees. This is governed by the Picasso General Council, which is intended to later be governed by PICA token holders. 75% of spent network fees will automatically flow into the treasury pallet, with the remaining 25% of spent fees intended to be distributed to collators. Here, the token holders have the ability to identify and submit for approval improvement proposals relating to the Picasso network.
Improvement proposals may include but are not limited to implementing additional security audits, grants for development on the Picasso network, core protocol updates or additions, new integrations of other ecosystems and protocols into Picasso and the broader Composable ecosystem, educational initiatives, further developer and/or user documentation, additional technological exploration and enhancement, etc. Token Holders are encouraged to discuss initial ideas and recommendations for improvement proposals via conversation on the dedicated Picasso Discord and submit formal proposals through Picasso’s governance process.
For the purposes of advancing these above objectives,
- Composable may re-balance Composable-controlled accounts when warranted. This could involve creating new addresses and/or removing old addresses. For the sake of transparency, any changes in account addresses will be reflected below on this page.
- Composable may liquidate PICA on occasion, in the event that expenses cannot be paid in this token. For instance, Composable may liquidate PICA to accumulate KSM for maintaining the Picasso parachain slot on Kusama.
Genesis Addresses
The following is a list of non-circulating and circulating genesis addresses of PICA tokens. Upon token launch, the genesis pools would be the multisig addresses below. We have published this list for the community to monitor for purposes of transparency. The other non-multisig addresses are labeled as protocol controlled addresses.
Circulating supply refers to all tokens that are held in accounts outside of the non-circulating Composable and protocol-controlled addresses listed above.
- Circulating supply is currently the unvested tokens associated with the crowdloan rewards. No other multisig wallets or tokens will be considered circulating unless voted upon by protocol governance to become circulating, unless otherwise above.
Non-Circulating Genesis Addresses
The following multisigs are controlled by the governance council and are activated only by governance. These multisigs are considered non-circulating, and can only be considered “circulating” if voted upon by protocol governance to become circulating.
Team Tokens Multisig: 5zBQWEzVJuF7BPkgi8hxRW4T3c4RkfhMuArgXekwHyLck4hT
Ecosystem Incentives Multisig : 5upPPwmpXUp3yrgx6erAzr84BfywuhVhKCeza5MGmBY8wJCK
Liquidity Programs Multisig : 5ys4cFxQBDs8qhkXbs9smn7yVMSmJ3QdLeqNTHfhk5QmX5Pj
Centauri Fees Multisig: 5xMXcPsD9B9xDMvLyNBLmn9uhK7sTXTfubGVTZmXwVJmTVWa
Treasury Pallet for accruing fees: https://polkadot.js.org/apps/#/treasury
Alignment of allocation
In accordance with Council motion #16, the Picasso Treasury has been reimbursed for the allocation portion of the Infrastructure Round, which should have been sourced from the allocation designated for Ecosystem Incentives. This amount encompasses complete PICA allocations for oracle and collator providers, along with 12 months' worth of allocated rewards. The total PICA transferred sums up to 78,282,699.80.
Pursuant to Council motion #19, the Picasso Team Multisig will be reimbursed at its designated address from the Picasso Treasury. These tokens were mistakenly spent from the Team multisig address prior to the migration of a new Team Multisig, and therefore, reimbursed by the intended location, the Picasso treasury. The total PICA amount to be reimbursed is 51,874,200 PICA.
Following the launch of OpenGov phase 2 on Picasso, the allocation for the Picasso Treasury was transferred from the multisig account (5uMNuPRaGaJ6BXoys1Myi5gioCsc5dMux4A6R2dnxGPcNoHm) reserved by the council to the Treasury pallet account (5w3oyasYR35Hek3szEEuWUz8Vm2XXDs4dMoosQEvLU8JGuw7).
Neither of these events aims to modify any previously established token allocations; rather, they intend to rectify an accounting error between multisig addresses and improve the decentralisation of the protocol.
Protocol Controlled Addresses
Crowdloan Pallet Funds
Are located at the crowdloan pallet: 5w3oyasYQg6vkbxZKeMG8Dz2evBw1P7Xr7xhVwk4qwwFkm8u
A detailed list of the crowdloan contributions and rewards can be found on our GitHub.
IBC Escrow Address
The IBC escrow address is an intermediary protocol owned address on Picasso that temporarily holds assets during cross-chain transfers to ensure secure and trust-minimised communication. It is following account: 5z7QRVsBvf7BiS4Erw74GzmJU1BNiJ1dwKoJ9Z7t6b6hDrBA
Token Purchasers' Funds
Token purchasers’ funds have been loaded into a vesting pallet and will unlock based on the vesting schedule specified on the PICA token distribution. For more on how the vesting pallet works, please read: https://github.com/paritytech/substrate/blob/master/frame/vesting/src/lib.rs.
Picasso Allocation
As per Council Motion 26, 1,066,669,217.17 PICA tokens on Picasso Kusama was transferred to the Picasso (Cosmos) upon its mainnet launch from the Picasso Treasury to an escrow address. 1,066,669,217.17 PICA was minted on Picasso for the purpose of validator delegations during genesis. PICA was not burned on Picasso, but instead sent to the escrow address and once the transfer protocol opens, they will only be unescrowed if the initial PICA supply minted on Picasso is sent back to Picasso Kusama.
Hyperspace Relayer allocation
The current Hyperspace account on Picasso has the following address: 5wcgm3bbotHBcSjpgN6uGV338XhxDGuB22BETxsbgaMwqhzT.
State of PICA Supply as of October 26th, 2022
- Circulating Supply: At most currently ~15% of Total supply.
- Total Supply: 10 Billion
- Gross Inflation: N/A
- Net Inflation: N/A
- Burnt Fees: N/A
The PICA token generation event (TGE) occurred on December 28th, 2022 at block number 1,444,176 on our chain. Total PICA supply at this time is 10 billion, which is the genesis supply of PICA. Additional PICA token distributions, inflation, etc. will be reported here once PICA goes into circulation after the TGE.
Tokens Released Into Circulation
Historical Token Release Since Network Launch
As per the tokeneconomics, half of the crowdloan rewards are now available, and the locked portion will continue vesting according to the vesting schedule. The unlocked tokens are considered circulating.
The treasury has seeded QA, testing stages, and operational wallets:
5wiDStfPBJDhzJmkNqnjsbAmunqbSb8h1JobZV7FiMzgEmZu
HCMDYY3ittCoNQEtZV9XAxMQkC6YYKgC6cxZuJkAdikhuqQ
5w53mgBc2w2kNQZgFBaYT5h79cQQNfv8vUuoa85zUe5VxBvQ
No other tokens will be considered circulating unless approved by governance.
Disclaimer
This document is meant for informational purposes only. It is not meant to serve as investment advice or an offer to sell or buy any securities, utility tokens, or any financial instruments or services. Any reader should conduct their own research, and consult an independent financial, tax, or legal advisor before making any decisions. The past performance of any asset is not indicative of future results. Although the information is intended to be presented with accuracy, in the event any statement is or becomes inaccurate, the creator is not responsible for any such inaccuracies and the reader fully disclaims and releases the creator from any and all liability. Since the content is intended to be disclosed on the date of its release there is no duty on the part of the creator to update any material shared herein. Please see our important Legal Disclosures & Disclaimers which are fully incorporated herein as if set out here at length: https://www.composable.finance/disclaimer