GRASS Token Utility

The GRASS token is central to every major function in the Grass ecosystem. It is not just a reward token but the mechanism that links contributors, validators, routers, and data buyers into one coordinated economic system. The most direct utility lies in compensating users who share unused bandwidth with the network. Each time a Grass Node successfully routes and completes a task, it earns Grass Points, which are later converted into GRASS tokens. This allows users to turn idle internet connections into verifiable and rewarded contributions.

Beyond rewards, the token is used to support network operations. When users or external clients access data from the Grass network, they pay fees in GRASS. These fees compensate the infrastructure that enabled the data request—from routers and nodes to validators. This internal payment model keeps demand and utility tied to real usage, helping maintain economic sustainability. As adoption increases, so does the demand for GRASS tokens from entities that want to query or extract structured data from the network.

Staking is another major function of the GRASS token. Holders can stake their tokens by delegating them to routers. This delegation plays a direct role in the network’s mechanics. Routers with more delegated stake handle more traffic, leading to higher earnings, which are then shared with their stakers. This not only secures the network and distributes trust but also creates a passive income opportunity for token holders who prefer not to run infrastructure themselves.

GRASS Supply and Allocation

The total supply of GRASS tokens is fixed at 1 billion GRASS. This cap ensures predictability and prevents inflation through uncontrolled token issuance. The allocation plan distributes this supply across key stakeholders and functional areas of the protocol, striking a balance between incentivizing early growth and sustaining long-term development.

• 30% – Community
  This is the largest share of the supply, set aside for user-based incentives such as airdrops, router rewards, and other participation programs. By allocating nearly a third of the supply to the community, Grass reinforces its commitment to rewarding contributors who share bandwidth and help build the network from the ground up.

• 25.2% – Investors
  These tokens were distributed to early financial supporters of the protocol. To ensure alignment with long-term goals, these tokens are subject to a one-year cliff and a one-year linear vesting schedule. This structure discourages short-term speculation and rewards investors who remain engaged through key stages of network development.

• 22% – Contributors
  This allocation includes both current team members and future contributors responsible for building and maintaining the network. These tokens are locked with a one-year cliff, followed by a three-year linear vesting schedule. The structure ensures contributors are rewarded over time as they deliver real value to the protocol.

• 22.8% – Foundation and Ecosystem Growth
  Managed by the Grass Foundation and governed by the community, this allocation funds core infrastructure upgrades, ecosystem expansion, gra

• 17% – Future Incentives
  These tokens are reserved for retroactive rewards that recognize users and builders who supported the network in its early phases. This includes developers, testers, educators, and others who contributed before the token launch. Distribution will be managed transparently to reward meaningful contributions.

• 10% – Airdrop One
  Distributed to early users and bandwidth contributors, Airdrop One marked the first GRASS token issuance event. It played a central role in onboarding the community and rewarding those who actively supported the network before the mainnet launch.

• 3% – Router Incentives
  This tranche is allocated specifically to support router operators during the network’s initial growth phase. Routers are responsible for coordinating bandwidth and traffic, and early rewards are essential to attract operators who can meet network performance requirements.

GRASS Vesting Schedule

The vesting schedule of GRASS tokens is designed to create long-term alignment between all participants—investors, contributors, and early adopters. It prevents sudden supply shocks, rewards sustained engagement, and ensures that token unlocks follow the network’s development pace. Instead of front-loading supply, Grass uses gradual unlocking with well-defined cliffs and vesting periods for each allocation.

Investor tokens follow a one-year cliff, after which tokens unlock linearly over the following 12 months. This ensures that early backers remain committed to the network beyond its initial launch and that the capital invested is matched by a willingness to support ongoing growth. This approach avoids rapid sell-offs and creates predictable token flow to the market.

Contributor tokens are subject to an even longer vesting schedule. After the initial one-year cliff, these tokens vest over a three-year period. The goal is to incentivize the team and core developers not just to launch, but to maintain and evolve the protocol over time. This structure encourages accountability and rewards builders who deliver value consistently.

The Foundation and Ecosystem Growth allocation includes a long-term vesting structure. A portion of these tokens is available immediately at launch, but the majority follows a five-year linear vesting after a one-year cliff. These tokens are intended for grants, partnerships, ecosystem funding, and operational costs—so the long timeline reflects the need for sustainable and thoughtful deployment of resources.

The Future Incentives pool is unlocked progressively over a three-year window. These tokens are meant to reward early community members, creators, and developers who contributed before the token launch or helped grow the ecosystem in its early days. The gradual release of these tokens ensures that recognition is ongoing and based on verifiable contributions.

GRASS Economic Design

The economic design of the GRASS token focuses on creating a self-sustaining, decentralized, and performance-driven network. Its core logic is simple: users contribute value to the network by sharing bandwidth or running infrastructure, and in return, they receive GRASS tokens. These tokens can then be used within the system for access, staking, or participation in governance, creating a closed-loop economy where utility is tied directly to contribution and demand.

At the base layer, the network generates data through the activity of Grass Nodes. Each valid request or data delivery is tracked, verified, and rewarded. This model creates a direct link between work done and tokens earned. Unlike speculative tokens that derive value solely from market hype, GRASS is tied to measurable on-chain actions—every token in circulation represents some form of value delivered to the network.

Staking extends this model by linking token holders with infrastructure. Those who hold tokens but do not run routers can delegate to those who do, sharing in the rewards. This allows the system to direct more traffic toward well-performing routers and ensures the protocol’s routing backbone is secure and incentivized. This shared-reward model keeps both infrastructure operators and token holders aligned.

To ensure resource efficiency, Grass uses a fee market that prices traffic based on network congestion, node reputation, bandwidth requirements, and geographic relevance. This market-driven pricing model helps prevent congestion and rewards nodes with better performance or location-based advantages. Fees collected in GRASS tokens circulate back to contributors, keeping the economy fluid and responsive to demand.

Highlights

• The GRASS token powers rewards, payments, staking, and governance, allowing users to contribute bandwidth, delegate to routers, and participate in protocol decisions.
• Total supply is capped at 1 billion tokens, distributed across community incentives, investors, contributors, foundation reserves, and early participation programs.
• Structured vesting schedules with cliffs and linear releases ensure gradual token distribution over multiple years, protecting the network from short-term speculation.
• The fee market dynamically adjusts based on bandwidth, location, congestion, and performance, ensuring contributors are paid fairly and usage remains efficient.
• The GRASS economy connects token utility to real participation, using a mix of staking, rewards, and governance to keep contributors, builders, and users aligned over time.