Token Creation & Distribution Phase I

Increment strives to become a fundamental piece of DeFi infrastructure on zkSync 2.0 and beyond, empowering on-chain perpetual swaps and other innovative products for the crypto universe. During the first 15 days of its beta launch a few months ago, the Increment protocol reached a total volume of $24.7 million, 6806 unique users, and 67,807 transactions on zkSync 2.0 testnet.

In order to enshrine Increment as a public good that is built and maintained by the community, the core contributors and core community members have reached consensus on launching the INCR governance token in order to establish an ecosystem around the Increment protocol and further its path to decentralization. If the broader community votes in favour of this proposal, the INCR token will be created and a portion will be distributed retroactively to various community members of the Increment ecosystem.

Token Utility and Mechanisms

The INCR token will be used by the community to vote, govern, and curate essential infrastructure components of the Increment ecosystem, including:

Increment protocol

  • Market deployments
  • Technical parameters
  • Economic risk parameters
  • Curation of supported collateral assets

On-chain assets

  • Outstanding INCR token supply
  • Other Increment community treasury assets (NFTs, ENS names, etc.)

Token economy

  • Protocol emissions
  • Future token utility

By giving INCR token holders control over the core components of the Increment ecosystem, the community is empowered to play an active role in building, maintaining, and contributing to the ecosystem.

Token Supply

At genesis, 20 million INCR tokens will be minted on Ethereum mainnet. The INCR token has a fixed token supply.

Token Distribution

The total supply of INCR tokens will be distributed and vested as follows:

A detailed breakdown of the token supply can be found in this spreadsheet here.

Community Emissions

9,200,000 INCR is allocated for future token emissions for protocol users. Note that the exact emissions schedule has not been set. This amount should only be used with a mandate from the Increment community, where the mandate is granted by completing the appropriate governance proposal and voting processes.

Community Distribution

There will be three community distributions in total. 400,000 INCR is distributed in the first phase and will be available immediately to the community. The second phase will distribute 1,000,000 tokens to the community within the first year of launch. And the third phase will distribute another 1,000,000 tokens to the community within the second year of launch.


800,000 INCR is allocated for ecosystem grants, partnerships, etc to further grow the Increment ecosystem. This allocation is vested linearly for 2 years.

Core Contributors

3,000,000 INCR is allocated to current and future core contributor teams of the protocol. This allocation is locked for the first year, then begins a 4 year linear vesting schedule.

Seed Investors

3,120,000 INCR is allocated to seed investors who supported the beginnings of the protocol as well as its growth process. This allocation is locked for the first 9 months, then begins a 18 month linear vesting schedule.

Development Fund

1,480,000 INCR is allocated to the Development Fund to support future development costs or fundraises of the protocol. This allocation is vested linearly for 4 years.

The graph below can be found in the detailed breakdown of token supply spreadsheet linked above - it is an approximation of the initial 8 year token release schedule. *Note that the exact “Community Emissions” has not been set, and will be determined at a later time with the community.

Relative shares of the circulating token supply for the first 8 years.

Distribution Phase I

Back in October 2021, the Discovery Phase was proposed and implemented, where the main objective was to identify those who have been actively contributing in the Increment community. Since then, we’ve completed a series of stress testing events where numerous community members have joined in and used the protocol.

After the genesis of the INCR token, a total of 400,000 INCR will be distributed retroactively to the community and will be available immediately. Note that the ERC-20 token contract will be paused to begin with, which means that the token will be non transferable.

Goal of Distribution

  • Decentralization: INCR governance would benefit most if the token is widely distributed. Token holders’ can participate in building and contributing to the protocol.
  • Utilization: More active users should receive more tokens than less active ones. Recipients should get a “meaningful” amount, i.e. users should care about it and tx fees for claiming shouldn’t make it economically unwise to claim INCR tokens allocated to them.

Distribution Criteria

  • Increment Trivia POAP #11905 Minter
  • Community Writer POAP #32134 Minter
  • Meme Competition POAP #38023 Minter
  • Beta v1Tester POAP #39455 Minter
  • Beta v2 Tester Guild Allowlist
  • Battle Royale Trading Tournament POAP #88961 Minter
  • Community Role: Elite Profitmaxi
  • Community Role: Max Bidding
  • Community Role: Cred Stars
  • Community Role: Global Angels

Snapshot was taken on January 15th 2023 at 4pm UTC.

A detailed distribution method and criteria can be found in this spreadsheet here.

A sorted list of eligible addresses can be found here.

Sybil Hunting

It is no secret that there are bots and illegitimate users that try to sybil attack a protocol’s governance system in this space. If they succeed, Increment’s protocol governance and community will be at risk of centralization and potential bad actors.

In order to distribute INCR to as many legitimate users as possible within the Increment community and mitigate this kind of attack towards our protocol governance, it will be necessary to call on the community for help in finding and reporting any potential cases of sybil attacks in the current list of eligible addresses.

Once this token creation and distribution phase I is confirmed by the community poll below, more details will be shared regarding sybil hunting in a link to a Github repo as the next steps.


The plans outlined in this proposal are subject to discussion and change. They may also need to be (re)structured to take account of legal, regulatory, or technical developments as well as governance considerations. This document should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in any transactions. You are solely responsible for your own investment decisions and transactions.

Poll Vote: Closes on Feb 15

  • Let’s do this!
  • Make no changes

0 voters


Lovely move by the team. This is very inspiring. I love it!


Let’s do this!
If such a roadmap has been drawn for the future of Increment, I accept it.



who can vote in this poll?

what is “trust_level_1,trust_level_2,trust_level_3,trust_level_4”?


Let’s go Great Project


Seems a pretty good idea, worth a try anyway, hope it works and looking forward to getting involved + especially to the zksync fair onboarding alpha release!


Yess increnment very nicee​:muscle::muscle::muscle::muscle:


I carefully read this and it seems like a good plan to me, however I would have add early discourse participants in the snapshot too as they’ve been one step ahead, preparing themselves for the governance and there aren’t many users here, as of now only 77 users on discourse and only 2 voted excluding myself, an additional portion for those 77 with the condition of active participation can encourage them and help them practice voting in a DAO later on.
Since number of Discourse members is low it’s easy to modify, I would suggest reducing anywhere between 3850-7700 tokens from the Trading tournament allocation as I think their getting a bit too much comparing to v1 and v2 traders ( bear in mind that their most likely not as early as the v1 and v2 users yet their getting about 2.5x - 11x amount of token ) and assigning this portion to Discourse users. This way Discourse users will receive anywhere between 50-100 tokens and Tournament participants will still receive a notable amount of 161- 176 tokens!


best anti Sybil is to look which address voted on Dao’s


Why I can’t vote , how we get roles ,


I agree with the proposal but I am also proposing token allocation to users with v2 beta tester roles should be increased. 16 tokens juxtaposed with the allocations for other roles seems just not right in my opinion. Hopefully something gets done about it. Thanks


Totally agree with you.


I think you have to be a bit more invested on here to be eligible.


Very clear and promising even if we can always talk about another distribution this looks quite fair and sustainable. Long term vision :+1:


Supported :clap: Great way to incentivize active supporters


Serious question tho - what the hell is a Trust Level 1 :joy_cat:


you just have to keep around here, reading topics and interacting. will happen very soon no worries


Alright cool. . . . . . .


Ok its good. The community needs the token very much


can’t vote but I like this proposal!