TechFlow reports that on February 5, the Espresso Foundation unveiled the tokenomics model for the ESP token. As an Ethereum ERC-20 token, ESP has an initial total supply of 3.59 billion tokens, with no fixed maximum supply.
The ESP token allocation is as follows:
Contributors: 27.36%;
Investors: 14.32%;
Airdrops: 10%;
Community sale: 1%;
Staking rewards: 3.01%;
Future airdrops and incentives: 24.81%;
Foundation operations: 15%;
Liquidity provision: 4.5%.
The ESP token will support the network’s proof-of-stake consensus mechanism. Holders can participate in network operations either by running validator nodes or delegating their tokens. Espresso employs a staking reward formula similar to Ethereum’s—offering higher incentives when staking participation is low, and gradually reducing the reward rate as staking participation increases—to ensure network security and stable operation.
Earlier, Espresso completed a $28 million Series B funding round in 2024, led by a16z.
