OVN Token

The OVN token serves multiple purposes within the Overnight protocol, functioning as a utility token with significant roles in governance, incentives, and risk management.

OVN token

Overnight Tokenomics

OVN Utility

The issuance of OVN aims to achieve two primary goals:

1. Promotion and Popularization of USD+: OVN is utilized for bribes to encourage the adoption of USD+.

2. Decentralized Risk Management: OVN provides voting rights that are essential for establishing robust risk monitoring and management processes.

The OVN token aligns community incentives by rewarding support for conservative risk decisions and allowing holders to veto aggressive strategies.

Bribing Strategy

Our new approach introduces a tokenomics model focused on sustainable growth and value for OVN holders. At the core of this strategy is our innovative rebase recycling system: 80% of rebase income generated from each liquidity pool with Tokens+ are used to purchase OVN tokens, which are then allocated as bribes in the same pool for the following epoch. This cyclical mechanism not only increases demand for OVN but also stimulates continuous pool growth.

A key emphasis is placed on high-revenue pools, especially those involving USDC+ and USD+ on the Base network, aiming to maximize returns and establish a strong economic engine for the protocol. To support this strategy, we’ve dedicated 9,000 OVNs weekly for bribes, with additional OVNs sourced from pool rebase income.

How to Benefit from OVN Token

1. Buy and Hold: The tokenomics are designed to maximize value over the next 30 months, making this a straightforward strategy for exposure to OVN.

2. Buy and Stake OVN/USD+ LP: This strategy generates additional yield from revenue but may limit upside potential and increase downside risk through impermanent loss.

OVN Token Distribution

• Total Supply: 1,000,000 tokens (fixed supply; no additional emissions planned).

Token allocation	Share (%)	Vesting terms
Pre-seed investors	8.5%	6 months cliff followed by 24 months linear vest
Team	25.0%	6 months cliff followed by 24 months linear vest
Pre-sale	2.5%	25% on end of sale, 75% 4 week linear vest
Insurance fund	20.0%	10% on end of sale, 90% 6 months linear vest
Treasury	44.0%	10% on end of sale, 90% 6 months linear vest