Tokenomics and Vesting Schedules

Token Supply

A total and finite supply of 1,000,000,000 SPARKLET tokens will be issued on Ethereum. These tokens will be mirrored by 1,000,000,000 SPARKLET that will be minted in Upland (EOS). The amount of SPARKLET that is under ownership in Upland (either by player accounts or the broader community through the “Accumulated Spent Spark” account) will always be exactly equal to the amount of SPARKLET that is present in escrow on the Ethereum bridge.

SPARKLET in Circulation

SPARKLET in circulation is defined as the total amount of liquid SPARKLET owned by Ethereum accounts, plus the total amount of SPARKLET in escrow (both hot and cold) on the Ethereum bridge.

SPARKLET Accounts and Vesting Schedules

Development and Growth

Uplandme, Inc. will have SPARKLET tokens vest to this account, to be used for the purpose of supporting the continued maintenance, operations, and growth of the Upland platform, as well as any other causes it deems as beneficial for the Upland ecosystem. In a potential path for the full decentralization of Upland, the Upland community (represented by a DAO, or other form of system of governance) will obtain authority over this pool.

Incentives and Awards

Uplandme, Inc. may use tokens from the Incentives and Awards allocation to encourage engagement and participation among Upland players. These can be activities such as, but not limited to, consecutive sign-in bonuses, level-ups, live events, competitions, missions, and treasure hunts. Uplandme, Inc. may tweak and update the mechanisms and value for incentives and awards at any time to comply with its goal of maintaining a stable overall economy in Upland.

Token Grants for Adopting Communities, Games/Platforms, and Brands

Uplandme, Inc. may use tokens from the Ecosystem and Grants allocation to incentivize growth. These may include grants to different communities, games, platforms, brands, and any other partners that use the Upland platform as means to execute or expand their Web3 strategy using Upland’s developer API, metaventure ecosystem, and zero-code NFT capabilities. SPARKLET grants may also be used to incentivize developers to use SPARKLET staking in their products through Upland APIs.

Advisors and Supporters

Uplandme, Inc. may use tokens from the Advisors and Supporters allocation to incentivize partners such as entities that provide marketing and market-making services, entities such as centralized exchanges for their listing services, and other advisors and supporters. In the case where vested tokens are not utilized for advisory purposes 12 months after vesting, Upland may roll over the tokens to its treasury allocation.

Existing Upland Owners

These are SPARKLET tokens that are already owned by existing players on the Upland platform. At TTE, these tokens will be considered as already uploaded to Upland (see Bridging from Ethereum to Upland). This allocation comprises 7.55% of tokens already owned by players, in addition to 6.45% which will be used to increase the existing owner’s stake relative to the fully diluted token supply. Any unclaimed tokens form this allocation will be forwarded to Incentives & Rewards.

Token Launch Campaign

Tokens in this pool will be appropriated to support token launch activities in conjunction with partnering CEXs as well as social airdrop campaigns.

Liquidity and Multichain Support

SPARKLET in this account will be used for liquidity purposes by market makers to support the trading of SPARKLET tokens as well as future potential liquidity for multi chain support.

Token Distribution Summary at TTE

Vesting Schedule

Sustainable Vesting Schedules

Sustainable Vesting

Anticipated demand for SPARKLET is poised to surge within the Upland community, aligning closely with the increasing number of daily participants in Upland’s activities and the ongoing introduction of further applications for SPARKLET. Due to the dynamic nature of the trajectory curve of this evolving ecosystem, the concept of Sustainable Vesting schedules takes center stage in this white paper.

This pioneering vesting framework introduces a dynamic approach that factors in both the ‘Development and Growth and ‘Incentive and Rewards’ token allocations. In a scenario of zero growth from the time of the TTE, both allocations will vest over a 10-year period. Simultaneously, as specific growth milestones are achieved, the vesting schedule will compress, facilitating the release of a higher volume of tokens each month.

The yardstick for growth will be the average count of daily active wallets within the Upland ecosystem, assessed over monthly intervals; wallet count will exclude SPARKLET token holders on Ethereum. Notably, once a growth milestone is attained, it becomes a permanent accomplishment, impervious to any fluctuations that might temporarily occur beyond the time of achievement.

Vesting Milestones

Management of Sustainable Vesting Schedules

The authority responsible for the potential contraction of the vesting schedules when growth milestones are hit will be delegated to an independent 3rd party (e.g., a legal trust) that will be a necessary multi-signatory for any change to the vesting schedules.

Managing Accumulated Spent SPARKLET

SPARKLET that is spent inside of Upland (e.g. for the purpose of creating ‘Legits’ NFTs) will be transferred to and accumulated in a dedicated account. In a period cadence that will be determined in the future, the Upland team will work with the community to form a proposal and recommendation about what should be done with the accumulated spent SPARKLET (e.g. have it burned, transfer to either grants or incentives allocations, or any mix thereof). The proposal will then need to be voted on and approved by the community prior to execution.

Updating Tokenomic Parameters in the Future

This white paper serves as a foundational document aimed at forging alignment between Upland's operator, Uplandme, Inc., and the present, as well as prospective, participants within the Upland ecosystem. It is acknowledged that as the ecosystem evolves, divergent scenarios might emerge that necessitate adjustments to the tokenomic parameters presented. To effect any modifications to the tokenomic parameters delineated in this white paper, the endorsement of the Upland community through a straightforward majority vote will be mandatory, adhering to Upland's governance directives as detailed here:

https://www.upland.me/events/upland-home-addresses-the-beginning-of-community-governance