PIP-1: Token Allocation Structure

Join the conversation on how ownership will be shared between users, the team, investors, and the foundation.

Overview

This proposal outlines the initial token allocation framework for the upcoming Project 0 token launch.

The goal is to align long-term contributors, investors, and users around a sustainable and transparent token model that ensures fair distribution and ongoing incentive alignment between stakeholders and the broader DeFi ecosystem.

The proposed structure allocates tokens across five key categories — Community, User Incentives, Team, Investors, and Foundation — to ensure decentralization, reward early users, and fund continued development and ecosystem growth.

This proposal serves as the starting point for community discussion ahead of formal governance approval in Q4, 2025.

Context

Project 0 (P0) was designed to unify margin trading, lending, and liquidity across Solana and other chains — creating a single, composable margin layer for DeFi.
Over the past year, the P0 team has iterated on integrations (e.g., MarginFi, Kamino) and community programs (MarginFi + P0 points) to bootstrap adoption and reward users.

The Project 0 token will formalize these incentive programs and introduce a governance mechanism to steer long-term development, ecosystem growth, and integrations across new networks such as Ethereum and Hyperliquid.

A transparent allocation model is critical to ensuring sustainable growth and preventing short-term rent-seeking behavior. This proposal sets the foundation for that structure.

Reasoning

The proposed allocation model aims to balance community ownership, protocol sustainability, and alignment among all key stakeholders.
The structure reflects three core principles:

1. Community-first — Early users, traders, and integrators receive significant ownership to reinforce the ethos of open participation.
2. Long-term alignment — Team and investor allocations are vesting to ensure sustained commitment to protocol success.
3. Ecosystem sustainability — The Foundation allocation guarantees long-term funding for integrations, audits, grants, and liquidity support.

Unlike traditional launches that rely on heavy insider allocations or high FDV, Project 0’s token model emphasizes accessibility, fair distribution, and alignment with the growth of DeFi.

Proposed Allocation

• Community (Initial) – 20%
  • 15% to users (no vesting)
  • 5% to power users & integration partners (vesting)
  • Potentially 1% to a random power user (vesting)
• User Incentives – 20%
  • Distributed post-TGE to grow adoption and liquidity
• Team – 20%
  • Vested; rewards contributors building and maintaining Project 0
• Investors – 20%
  • Vested; early supporters and funders
• Foundation – 20%
  • Long-term ecosystem support; managed by token holders via governance

Additional Details

• Community Allocation
  • 15% distributed to all users based on MarginFi and P0 points.
  • 5% reserved for power users, integration partners, and ecosystem builders.
  • Proposal: 1% allocated to a randomly selected power user prior to TGE (based on combined MRGN + P0 activity).
  • Power user allocations and the random selection are subject to vesting.
• User Incentives
  • 20% reserved for ongoing growth initiatives post-TGE.
  • Supports new integrations, liquidity campaigns, and protocol usage incentives.
• Foundation
  • The Project 0 Foundation will steward this allocation to fund ecosystem development, partnerships, and grants.
  • The Foundation will be community-managed via token governance.

Call to Action

Community members are invited to share feedback and suggestions ahead of the final decision in Q4 2025. Join the conversation on the official governance forum.