BOB releases tokenomics model: 10 billion total supply, 50.91% allocated to ecosystem and community incentives
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BOB releases tokenomics model: 10 billion total supply, 50.91% allocated to ecosystem and community incentives
BOB is the most representative project in the Bitcoin DeFi ecosystem, serving as a gateway to Bitcoin DeFi.
Navigating Web3 tides with focused insights
On November 20, Beijing time, the hybrid public chain project BOB (Build on Bitcoin) released an official blog post unveiling the $BOB tokenomics and launched the token (TGE) on November 20 Eastern Time.
BOB is the most representative project in the Bitcoin DeFi ecosystem and serves as the gateway to Bitcoin DeFi, offering users the simplest and safest way to earn yield on Bitcoin. BOB’s unique hybrid chain model combines Bitcoin's security with Ethereum’s innovation, making it the preferred platform for building liquidity, applications, and institutional services on Bitcoin.
Security
• Hybrid zero-knowledge proofs and billions of dollars worth of staked Bitcoin secure all applications, assets, and transactions;
• Native BTC usage on BOB via BitVM technology, eliminating the need for wrapped tokens or custodians.
Convenience
• Bitcoin staking, Bitcoin DeFi, and Bitcoin vaults are easily accessible through one-click actions on BOB Earn and a single BTC transaction;
• One-click native BTC deposits and withdrawals supported across 11+ major chains including Ethereum, Unichain, Base, and BNB Chain;
• Top-tier DeFi ecosystem integrating widely recognized projects such as Uniswap, Solv, Chainlink, LayerZero, Anchorage, and Fireblocks.
$BOB Token Overview
Token Distribution
The total supply of $BOB tokens is 10 billion, minted on the BOB hybrid chain and issued as an ERC20 token.
The majority of $BOB tokens (50.91%) are allocated to the BOB community and ecosystem, distributed as follows: initial claim (4.15%), community public sale (2.00%), and ongoing ecosystem and community incentive programs (44.76%).
$BOB Token Allocation
Token Unlocking and Release Schedule
At launch, the percentage of non-vested tokens in the initial circulating supply will be 22.20%. Approximately 510 million tokens (5.1%) will enter the community through initial claims and the community public sale. Additionally, about 1.46 billion tokens (14.6%) will be allocated to the ecosystem and community, and 250 million tokens (2.5%) to the BOB Foundation—all unlocked at TGE.
Tokens allocated to core contributors and early supporters will be locked at launch and unlocked according to predefined 2–3 year vesting schedules to align their long-term incentives with BOB’s success. In total, 77.8% of the BOB token supply will be locked on day one. Tokens allocated to the Foundation, ecosystem, and community will unlock linearly over 48 months. All 10 billion tokens will be fully unlocked 48 months after the $BOB token launch.
Locked tokens cannot be staked, ensuring that staking rewards are distributed to the community and active participants in the BOB ecosystem, preventing early concentration among direct participants (team members and investors).
$BOB Token Release Timeline
Ecosystem and Community (44.76%)
About 44.76% of $BOB tokens are reserved for ecosystem and community development. Roughly one-third (14.6% of total supply) will unlock at TGE, with the remainder unlocking linearly over 48 months. This ensures that BOB DAO can access funds early to support growth initiatives while maintaining long-term planning. These resources will be managed by the BOB Foundation and BOB DAO through on-chain governance.
These funds will support the development of the BOB ecosystem and community, including ongoing community, developer, and DeFi initiatives, as well as staking rewards. A small portion (5%) has already been pre-allocated to early DeFi, liquidity, and ecosystem growth strategies. The remaining 39.76% will be jointly managed by the BOB Foundation and BOB DAO over the coming years.
Initial Claim and Staking Incentives (4.15%)
About 4.15% of $BOB tokens are distributed to the BOB community through initial claims and staking incentives.
Of this, 2.15% will be awarded to BOB Fusion users, content creators, and event participants as initial claim rewards. Strategic liquidity providers who contributed significantly to liquidity pools, seed lending, and other DeFi activities on BOB are excluded from the BOB Spice system to avoid dilution and must adhere to a 12-month lock-up schedule. Some activity-based allocations also follow predetermined lock-up terms.
The remaining 2.00% will be used for staking rewards, available immediately upon staking and locking tokens for a specified period.
To receive the maximum initial reward, eligible recipients must stake and lock their tokens for 18 months, qualifying them for a 250% token bonus. Shorter lock-up periods yield proportionally smaller rewards.
All $BOB token holders—including airdrop recipients, public sale participants, and users purchasing on open markets—can claim these one-time locked staking rewards within 60 days after TGE, on a first-come, first-served basis until the pre-allocated budget is exhausted.
Only fully unlocked tokens are eligible for staking and locking. Therefore, team and investor tokens under lock-up restrictions do not participate in this program.
The token distribution aims to reward those who contributed most to the launch and development of the BOB ecosystem. Detailed claiming and staking guidelines will be provided prior to token issuance.
Community Public Sale (2%)
The $BOB community public sale concluded successfully from November 10 to 16, selling 2% of $BOB tokens and raising $4.2 million. Verified members of the BOB community (top Spice holders in the BOB Fusion program and top 2,000 users in BOB Cookie Snaps) were eligible to participate at a discounted price. Tokens purchased in the community public sale unlock 50% at TGE, with the remaining 50% unlocking linearly over 3 months.
Foundation (10.00%)
The BOB Foundation acts as the steward of the BOB ecosystem, tasked with advancing BOB’s commercial interests and user welfare to grow the ecosystem. To this end, 10% of $BOB has been allocated to the BOB Foundation to fund R&D and initiatives aimed at expanding and improving BOB’s products, distribution, and technical design. Of this, 2.5% unlocks at TGE, with the remaining 7.5% unlocking linearly over four years.
Core Contributors (19.00%)
To build the future of Bitcoin DeFi, attracting top industry talent and ensuring long-term alignment is critical. Thus, 19% of $BOB tokens are reserved for early and future contributors. These tokens are subject to a 36-month vesting period with a 12-month cliff based on service contributions.
Early Supporters (20.09%)
About 20.09% of $BOB tokens are allocated to early supporters who provided significant financial, advisory, and strategic support. Different groups have slightly varying terms:
• Strategic and Seed Round supporters (18.71%), with a 36-month linear unlock and 12-month cliff;
• Angel supporters (0.62%), with a 36-month linear unlock starting from TGE;
• Certain strategic partners (0.77%), with a 12-month lock-up followed by 12 months of linear unlocking.
Token Utility
$BOB is the native token of the BOB hybrid chain ecosystem and will serve the long-term goals of the BOB network. It enables all users, builders, and stakeholders to actively contribute to the network through staking and decentralized governance.
Staking Secures Economic Security
As part of the $BOB token launch, we are introducing a $BOB staking mechanism to establish economic security. Users can stake and delegate their $BOB tokens to "Hybrid Nodes." When BOB’s second phase officially launches with the Bitcoin finality mechanism, these Hybrid Nodes will perform two key functions:
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Providing finality to BOB through Bitcoin staking. Users who stake $BOB tokens become Finality Providers (FPs) and earn higher transaction fee shares.
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Operating BOB’s native Bitcoin bridge, BitVM. Users who stake $BOB tokens qualify as BitVM operators and earn higher transaction fee shares.
Decentralized Governance
We aim for the community, through $BOB tokens, to play a vital role in the decentralization of BOB governance over time. Both staked and non-staked tokens can be used for BOB governance participation.
BOB governance oversees upgrades to core components such as the underlying network, BitVM, and Gateway. BOB DAO participants can also vote on treasury allocations. BOB DAO will be operational from day one, composed of all $BOB holders.
Participants can vote directly or delegate their voting power to governance representatives to vote on their behalf.
Protocol Utility
$BOB token holders gain priority access to new BOB features and benefits—for example, when BOB Earn expands its connected vaults and DeFi strategies, or when BOB Gateway introduces instant BTC swap functionality.
Future BOB Fee Model and Buyback Program
BOB aims to become the gateway to Bitcoin DeFi, attracting millions of users and generating billions of dollars in TVL and trading volume. As both an independent DeFi platform and a key distribution channel for larger DeFi ecosystems, BOB has multiple revenue streams:
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Sequencer fees and premium MEV. BOB earns revenue from sequencer fees and “premium MEV” (e.g., DEX pool rebalancing and liquidations). Fees scale linearly with usage, while premium MEV from DEX rebalancing and liquidations grows exponentially. This can generate substantial revenue as trading volume increases.
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BOB Gateway swap fees. BOB Gateway is the first BTC intent protocol, enabling native BTC swaps into any asset on any chain. Higher swap volumes directly increase revenue. Focused on BTC on/off ramps and integration with major bridges, BOB achieves fast scaling and network expansion at minimal operational cost compared to slower, more expensive alternatives. BOB Gateway already partners with LayerZero to support 11 chains, with more to come.
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Hybrid Vaults. BOB’s upcoming BTC yield vault combines on-chain and off-chain strategies and collaborates with institutional partners, generating performance fees as TVL grows.
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Native BTC Lending and Liquidation. BOB is developing a Bitcoin-native lending system allowing users to borrow stablecoins against Bitcoin while keeping BTC securely on the Bitcoin network. Powered by BitVM vaults and BOB’s innovative liquidation engine, this leverages one of Bitcoin’s strongest use cases—collateral—to generate significant protocol revenue from lending demand and liquidations.
As network activity expands and protocol revenues grow, BOB DAO may introduce a structured buyback framework to strengthen long-term partnerships with builders, contributors, and users, better driving ecosystem development. Such mechanisms would become a core pillar of BOB’s value flow, directly linking network growth to users who stake and maintain system security. This creates a sustainable positive cycle: increased user numbers enhance rewards, deepen engagement, and foster a resilient, cohesive community over time.
Disclaimer
This article is for informational purposes only and does not constitute an offer, solicitation, or recommendation to sell, buy, or otherwise transact in any tokens, securities, or other financial instruments. You should not treat any information herein as legal, financial, investment, tax, or professional advice. This communication does not replace consulting qualified professionals or conducting your own independent research.
Any statements regarding future events, forecasts, or expected outcomes are hypothetical, forward-looking, and illustrative only. These statements are not guarantees, may change at any time without notice, and actual results may differ materially from expectations. BOB LABS INC. and/or the “BOB Group” make no express or implied representations or warranties regarding the accuracy, completeness, reliability, or validity of the information contained herein. All information is provided “as is” and may be revised, updated, or withdrawn at any time without notice.
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