Learn more about the protocol native governance token of Euler
Euler will be managed in the long term by a decentralised community through on-chain governance on the Ethereum network. The community are holders of a protocol-native governance token called EUL. Tokens can be used to propose upgrades to the protocol or vote on the proposals of others. EUL tokens represent voting powers over the protocol.
Allocations & Vesting
The total supply of EUL is 27,182,818 (in homage to Euler’s number, e). The initial four-year allocation of the EUL total supply is as follows:
25% (6,795,704 EUL) to users who borrow on community-selected markets (see Gauges) on Euler over 4 years (see Distribution).
1% (271,828 EUL) to all users who deposited or borrowed assets on Euler during its soft launch (see Distribution).
2.5% (679,570 EUL) to users staking EUL to a safety staking pool over 4 years (see Safety Module).
20.54% (5,585,389 EUL) to an ecosystem treasury, unlocked (see Treasury).
26.2% (7,122,577 EUL) to investors in Euler XYZ Ltd, with an 18 month linear vesting schedule.
20.75% (5,640,434 EUL) to employees, advisors and consultants of Euler XYZ Ltd or the Euler Foundation, with a 48 month linear vesting schedule.
4% (1,087,312 EUL) to future employees, advisors & consultants of Euler XYZ Ltd or the Euler Foundation, with a non-linear 48 month vesting schedule.
Here is the breakdown:
Note that the initial allocations may be subject to change as the ecosystem evolves. As EUL is distributed to users of the protocol they may see fit to vote to alter the EUL Distribution Programme or allocations to the Safety Module, for example.
The total supply of EUL is fixed for the first 4 years, after which EUL token holders may enact a governance proposal to inflate the supply by a maximum 2.718% per year. In that scenario, newly minted EUL will enter circulation via the Treasury.
Here is the breakdown after 10 years:
Inflation & Liquid Supply
The approximate schedule for the inflation of the liquid supply of EUL is shown below.
Note: EUL tokens cannot currently be transferred pending establishment of the Euler Foundation and the ecosystem treasury.
The schedule for the EUL Distribution Programme tries to match increasing protocol user numbers after launch with a concomitant increase in the EUL distribution, which should help to decentralise supply of the token. The graph below shows the amount of EUL distributed by through the programme as a % of the total supply, which can be thought of as a kind of long-term inflationary rate.