The Based Foundation has finally unveiled the tokenomics for its native token, $BASED, as it prepares for a token generation event (TGE) scheduled to happen sometime in March.
According to an official article from the Based Foundation, the goal of the $BASED tokenomics is straightforward. They plan to “keep the supply fixed, distribute meaningfully to the people who use and grow the product, and preserve a long runway for future rewards and expansion.”
However the reactions to the announcement are not completely positive.
How will Base Foundation allocate its tokenomics?
The allocation breakdown splits 36% to the community, 23.64% to ecosystem & community rewards, 20.36% to investors, and 20% to core contributors.
The genesis distribution of 360M $BASED will focus on the users and partners who have contributed to the ecosystem to date. The intention is to distribute tokens to early and existing community members and support ongoing participation.
Of the 36% committed to community allocation, 23.5% of the total supply (235,000,000) is allocated to Based community members who participated in Season 1 and Season 2 points campaigns, PUP holders, BasedPal NFT holders, and launch partners supporting the TGE.
Those tokens are intended to be claimable when claims open (targeting March 2026, date to be confirmed) with no vesting period.
7.5% of the total supply (75,000,000) will also be reserved for the Ethena community, a nod towards their strategic investment and the collaboration on HyENA.
Eligibility criteria and claim details will be announced by the Ethena Foundation, but the unlock schedule will mean that 20% of the allocated tokens unlock monthly at the rate of 6.67% per month for the first three months.
After month 12, 40% unlocks at the one-year anniversary, and between months 13–18, the remaining 40% vests linearly over six months. 5% of the total supply (50,000,000) has been set aside for Season 3 participants.
The third season is scheduled to run through May 4, 2026 and tokens earned during Season 3 will be claimable on May 11, 2026, with no vesting period.
The reaction to the news has not been all positive though, with most of the complaints being about the allocations to partners like Ethena from the 36% community allocation, leaving only 16% for farmers of the 1st and 2nd seasons, who believe they deserve more for their contributions.
What the $Based token will be useful for
The token will be useful as holding or staking it will reportedly unlock benefits across the Based platform (subject to program terms and change over time). Those benefits can range from reduced fees on trading and prediction markets to rewards on the Based Visa debit card (including up to 8% cashback, subject to program terms), higher card limits at higher holding tiers, lower on/off-ramp fees, discounts with Based Mall merchants and access to future project launchpools.
$BASED may also be used as a medium of exchange on Based Mall, where users can pay with stablecoins and may use the token to purchase items at a discount. Furthermore, $BASED will support platform governance mechanisms (where applicable), enabling token holders to participate in shaping the platform’s direction.
Holders of the token may also be given access to launchpools and agentic AI features in the future as well as the right to participate during governance voting on the platform’s decisions.
Source: https://www.cryptopolitan.com/based-community-ecosystem-rewards-tokenomics/
