Tokenomics

USH is the governance token and incentive layer for unshETH. For details on token utility, see https://docs.unsheth.xyz/en/USH. USH has a fixed total supply of 143.5M and launched with an airdrop.

Airdrop Distribution

The total supply of 143.5 million USH was created at genesis. Approximately 7.5% of the initial supply was distributed to the community. The airdrop distribution of USH was designed to target users who are typically early adopters of LSDfi projects. This was accomplished by dividing the airdrop into three groups:

• Group 1: The top users of crETH2, ankrETH, and vETH2 who farmed CREAM, ANKR, and vETH2 within the first 30 days of the launch of each protocol's LSD.
• Group 2: The largest current users of frax's sfrxETH and users with either Coinbase cbETH, LIdo stETH, or Lido wstETH deposited in Euler.
• Group 3: Users who provided liquidity in the first 30 days of launch for the Convex ETH+frxETH pool, Aura rETH-ETH Balancer LP, and Aura wstETH-ETH Balancer LP, in proportion to each user's share of cumulative liquidity provided over time.

In addition to the community airdrop, USH tokens were also distributed to the founders and early contributors of the project. The distribution is as follows:

USH Token Distribution

The initial token allocation was 20% for the core team, 5% for early contributors, and 75% for the 'community.' Since then, there have been 2 changes to the team allocation:

• 2M USH (1.4% of token supply) was burned from the team allocation as described in this blog post: https://mirror.xyz/0x749Dc728A68265e74754Ad8e6cc2649BD42a8f8a/kDlHtitDCCBmWpYBho3zXLX-RIMs3oRaHDHpvqSLVGQ
• 7.2M USH (5% of token supply) was diluted from the team allocation and re-allocated to seed investors to promote the development of the unshETH protocol.

Recently, UIP-02 was proposed to update Liquidity Incentives Strategy to conserve and extend emissions: (https://snapshot.org/#/unsh.eth/proposal/0xbecb6f0dc285cded6848ff232d52706f1e61edcad01b485da2fded832dbd28e5).

Below is the latest picture of USH token allocations inclusive of changes to core team and community allocations:

USH Emissions Schedule

With UIP-02 – liquidity incentives runway was extended to 2025. The core team (and seed investors) also decided to slow vesting rates to be in line with the community emissions. See below for the most up to date Emissions Schedule:

USH Circulating Supply

As of Aug 2023, the current USH circulating supply is 56M (~40% of total supply) as can be seen in our Dune Dashboard (https://dune.com/unsheth/unshethxyz), CoinGecko and Coinmarketcap. This is in line with the Emissions Schedule shown above.