tokenomics reboot: to HODL or not to HODL
News 6 min read 2026-01-09

tokenomics reboot: to HODL or not to HODL

Tier-one exchange negotiations required tokenomics adjustments including cliff introductions and supply restructuring. YOM offered three agency-preserving paths for existing token holders.

Jeff Outlaw

Jeff Outlaw

CXO

An Important Update on YOM Token Generation Event, Vesting and Tokens.

As we move closer to our TGE, we are about to make some changes for the betterment of the network. This update is important to everyone as it showcases what we have been working towards, and especially for all who bridged from the legacy token to the new chain, as we need to implement some changes to the tokenomics.

We noted in previous articles, the award that we received at Gamescom, Best Gaming Tech Startup of 2026, started a chain of events that are culminating in the changes to our TGE plan. That award brought us to the attention of Avalanche, where we migrated the ecosystem, and they began opening conversations with new partners and advisors who equally saw the value in YOM.

It is through these people that we secured the leverage to get onboarded on one of the top tier exchanges in the industry. However, as part of the negotiations we were required by them to make changes to our tokenomics.

But first things first. Some recognition of your waiting times. You acted early, accepted long-term vesting, and did so based on the terms at the time. Any update that affects those terms deserves a direct and complete explanation, and should include your ability to exercise agency.

To make that decision you need to have a solid understanding of the launch configuration we are working towards, including vesting, launch liquidity, and token supply structure. You then need to understand what your options are.

tokenomics update

The initial requirement presented to us was 5% of the token supply, a minimum FDV of $75M, and a 12-month cliff on all investor token allocations. We did not accept that; and after extensive negotiations, we have found agreement in a 3% of the token supply and a 3-month cliff.

So let’s first discuss the cliff.

changes to terms: cliff & vesting

To compensate for that change and to ensure the net token release stays equal we have decided to reduce all vesting times by 50%. So even with the 3 month cliff, those who fully vested will have access to all of your tokens in 9 months.

While final documentation is still in progress, the structure described below reflects the configuration we are actively planning around and do not expect to change materially.

The cliff is a core policy for Tier-1 exchanges to provide launch stability, benefiting all token holders. Without a cliff, the launch environment changes materially in ways that affect liquidity, execution certainty, and long-term market access for Tier-1 exchanges.

minting new tokens

As part of preparing for a Tier-1 exchange launch, we are tripling the launch valuation of the project along with the number of tokens in the supply, increasing it from 250 million to 750 million tokens. This new valuation has been made in consideration with our new partnerships and increased exposure and technological achievements over the past few quarters.

you get to decide (again!)

However, we recognize that changes to the terms and total supply can raise valid concerns around dilution. Rather than forcing a single outcome, we are proposing three clear options for participants who bridged, designed to accommodate different time horizons and preferences. We want to give bridgers agency, while aligning the system for the long-term.

option 1: passive option (default)

If a participant takes no action, they will automatically remain in the Passive Option. This option favors participants who want earlier completion and lower long-term exposure, without needing to take any action. Under this option:

  • You receive the same amount of tokens, as originally designed
  • You receive the same economic value, as originally designed
  • Your vesting duration is reduced by 50%
  • A 3-month cliff is introduced
  • You benefit from a Tier-1 exchange launch environment

What this means in practice

  • Your monetary value is preserved
  • Your exposure period is shortened
  • Vesting completes sooner than originally planned

However, your proportional ownership gets diluted proportional to the increase of newly minted tokens. Newly minted tokens not allocated to participants will be allocated to the future project treasury for ecosystem growth and operations, subject to a 10-year lock.

option 2: HODL option (opt-in)

For participants who want to not dilute and instead take a longer-term view, we are proposing a HODL Option. Under this option:

  • The number of your tokens is tripled
  • Your total economic value is tripled
  • Vesting duration is 1.5x the original bridged vesting
  • A 9-month cliff applies
  • You benefit from a Tier-1 exchange launch environment

What this means in practice

  • You prevent dilution by increasing token count
  • You take on a longer vesting commitment
  • You are explicitly aligning with long-term network growth

This option is designed for participants who believe in the project’s long-term trajectory and are comfortable committing to a longer vesting horizon in exchange for greater upside exposure.

option 3: buyout option (opt-in)

If neither vesting structure fits your situation, we will be offering a Buyout Option. Under this option:

  • You can choose to exit your bridged position
  • You receive a buyout equal to the monetary value of your tokens at the time of bridging
  • The refund is adjusted using market-conform interest rates

This option exists to ensure that participants who no longer wish to continue under the proposed launch configuration have a clear and fair exit path.

why we are offering these options

Different community members have different goals:

  • Some prefer shorter exposure and earlier certainty
  • Some prefer long-term alignment and increased token ownership
  • Some prefer capital flexibility

By offering explicit choices, we avoid forcing a one-size-fits-all outcome and instead allow each participant to select the path that best fits their strategy. All options are designed to work within current Tier-1 exchange requirements and are being proposed before TGE to ensure transparency and informed decision-making.

closing

We are confident that this entire move and deal is bullish for the project. And we furthermore believe that the above proposal with the provided agency caters to the complete spectrum of the community. Saying that, we recognize that some will still have feedback. We welcome the conversations that are ahead.

Obviously, should any material element change prior to TGE, it will be communicated clearly and ahead of time. Our responsibility is never to optimize for comfort, but for clarity, execution, and long-term success.

FAQ

why did YOM change the tokenomics? Tier-1 exchange negotiations required adjustments including cliff introductions and supply restructuring to meet their listing requirements.

what changed in the vesting schedule? A 3-month cliff was introduced, but all vesting times were reduced by 50% to compensate, meaning fully vested holders complete vesting in 9 months.

why did the total supply increase from 250M to 750M? The supply expansion aligns with a tripled launch valuation, reflecting new partnerships, increased exposure, and technological achievements.

what are the three options for bridged token holders? Passive (default): same tokens, shorter vesting. HODL (opt-in): tripled tokens, longer vesting. Buyout (opt-in): exit at bridging-time value with market-conform interest.

what happens if I don’t take any action? You automatically remain in the Passive Option — same token amount, 50% shorter vesting, with a 3-month cliff.

#tokenomics #TGE #vesting #exchange #DePIN
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Jeff Outlaw

Jeff Outlaw

CXO

Passionate about decentralized technology and the future of gaming. Writing about cloud gaming, DePIN, and the YOM ecosystem.

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