The initial allocation and vesting schedule of NEWT tokens is designed to align incentives across contributors, early backers, and the broader Newton Protocol community, while ensuring long-term sustainability of the ecosystem. A full breakdown of the token distribution is provided in the table below.

As of the date of publication, the Magic Newton Foundation has not sold any NEWT tokens. The Foundation will provide quarterly transparency reports detailing any NEWT sales or treasury activity, including how funds are used across distinct treasury categories such as operations, development, and community initiatives.

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Genesis Allocation

At the time of network launch, the total supply of 1,000,000,000 NEWT tokens will be allocated across multiple intended use cases and stakeholder groups, as outlined in the distribution table below. The Circulating Supply as of the date of the NEWT token launch will be 21.5%, including allocations for community rewards, validator rewards, and liquidity support.  See below for an explanation on Circulating Supply and how it differs from Distributed Supply.

Of the total genesis allocation, 60% has been designated for Community categories, while 40% has been allocated to Internal categories.

  • “Community” allocations refer to tokens set aside to directly support the growth, technical development, and decentralization of the Newton Protocol through initiatives such as ecosystem grants, network rewards, community rewards, and operational support via the Onchain Foundation Treasury. The Treasury supports the operational capacity of the Foundation to serve the Protocol and its community—covering essential functions like contributor coordination, governance support, and public infrastructure that enable the ecosystem to grow.
  • “Internal” allocations refer to tokens allocated to Core Contributors, Early Backers, and Magic Labs in recognition of their foundational work in building and supporting the launch of the Protocol. These allocations represent essential resources dedicated to the continued development of the ecosystem.

Token allocations to the Onchain Ecosystem Development Fund, Onchain Ecosystem Growth Fund, and Onchain Foundation Treasury are subject to a 48-month linear unlocking schedule, with 20% of the respective allocations unlocking at launch allowing immediate support of critical early developmental, growth, and operational needs for the Protocol.  Tokens allocated to Core Contributors, Early Backers, and Magic Labs are subject to a 36-month vesting schedule, including a 12-month initial lock-up period.  All allocations of locked or unvested tokens—whether from Internal or Community allocations—are prohibited from selling or transferring those tokens through secondary OTC transactions until they are fully vested and unlocked.

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Community Rewards (Community Allocation)

10% of NEWT token supply has been allocated to early Protocol adopters and participants in Newton Protocol ecosystem growth programs, including Portal, agent usage on newton.xyz, and ecosystem initiatives. A portion of this allocation—0.90% of the total NEWT token supply—has been designated for Kaito to support a Newton Protocol rewards campaign. These tokens are fully unlocked at launch. Any unclaimed or unused NEWT from this allocation will remain unlocked and be transferred to the Onchain Ecosystem Growth Fund.

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Network Rewards (Community Allocation)

8.5% of NEWT token supply has been reserved for validator incentives. The rewards will be deposited into the Newton Protocol staking contract and the Newton Protocol will distribute these rewards programatically to encourage network security and broader participation in staking. The final size and timing of distributions will depend in part on ongoing staking engagement.

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Liquidity Support (Community Allocation)

4% of NEWT supply has been allocated to support liquidity on centralized exchanges and/or decentralized onchain liquidity pools, available concurrently with or after launch. These tokens are fully unlocked and held in a Foundation-controlled multisig. This allocation is intended to improve early access to the community across supported centralized and/or decentralized exchanges. 

A portion of this allocation will be used with providers via structured call-option loan agreements. These arrangements are designed to support community token access. Tokens remain subject to contractual restrictions until options are exercised.  See Section 10: Financial Overview and Transparency for more information on token loan arrangements.

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Onchain Ecosystem Growth Fund (Community Allocation)

15.5% of NEWT token supply has been allocated for any campaigns, partners, or programs that support the growth of the Newton Protocol ecosystem. 20% of this allocation is unlocked upfront (3.1% of the total NEWT supply), with the remainder unlocking over 48 months. Tokens are held in a multisig wallet controlled by the Foundation subject to Newton Protocol governance, and disbursements will be disclosed through quarterly transparency reports.

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Onchain Ecosystem Development Fund (Community Allocation)

12.5% of NEWT token supply has been allocated to support technical and infrastructure development of the Newton Protocol, including developer rewards, hackathons, and core protocol enhancements. Like the growth fund, 20% is unlocked upfront (2.5% of the total NEWT supply), with the remaining tokens unlocking over 48 months and held in a multisig wallet controlled by the Foundation subject to Newton Protocol governance.

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Onchain Foundation Treasury (Community Allocation)

9.5% of NEWT token supply has been allocated to the Foundation’s onchain treasury for its operational purposes and initiatives in support of the Newton Protocol, including hiring employees, unaffiliated vendors, or paying for services. Like the development and growth funds, 20% is unlocked upfront (1.9% of the total NEWT supply), with the remaining tokens unlocking over 48 months. These tokens are held in a Foundation-controlled multisig wallet. 

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Core Contributors (Internal Allocation)

18.5% of NEWT token supply has been allocated to core contributors at Magic Labs who have played a foundational role in contributing to the development of the Newton Protocol. These tokens are subject to a 12-month cliff, with 33.3% unlocked at the cliff, and a 36-month linear vesting schedule.  

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Early Backers (Internal Allocation)

16.5% of NEWT token supply has been allocated to early backers of Magic Labs. These tokens follow the same 12-month cliff and 36-month vesting schedule as Core Contributors.

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Magic Labs (Internal Allocation)

5% of the NEWT token supply has been allocated to support Magic Labs’ ongoing operational needs. This includes funding for the continued development, maintenance, and expansion of products within the Newton Protocol ecosystem. These tokens follow the same 12-month cliff and 36-month vesting schedule as Core Contributors and Early Backers.

Allocation Chart

Allocation Table

Emissions Schedule

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Token Circulation

To provide greater clarity around token availability at launch and over time, the Foundation distinguishes between: (i) Circulating Supply and (ii) Distributed Supply.

Circulating Supply refers to the total amount of NEWT that is unlocked (i.e., tradeable, not subject to transfer restrictions) and designated for release into the market at or following launch. This includes allocations for community rewards (e.g., airdrops, Kaito), liquidity support, and the unlocked portions of the Onchain Ecosystem Development and Growth Funds and the Onchain Foundation Treasury. However, not all tokens within the Circulating Supply are expected to be actively used at or immediately following launch. Some NEWT tokens may remain inactive for various reasons—for example, tokens available for airdrop may go unclaimed or ecosystem token grants may not be issued.

To distinguish between tokens that are unlocked for circulation and those that are actively accessible and transferable, the Foundation also reports a second metric: Distributed Supply. This includes all NEWT tokens that have been claimed through community programs (e.g., airdrops, Kaito), distributed as staking rewards, provided for liquidity support, or deployed from Foundation-controlled wallets—and that are no longer subject to material restrictions on transfer or use.

The sections below provide a detailed breakdown of each category and the specific token allocations they include.

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Circulating Supply

The Circulating Supply as of the date of the NEWT token launch is 21.5% and is allocated as follows:

  • 10% - Community Rewards (e.g., airdrop)
    • This allocation of NEWT is unlocked at launch and available to be distributed to early users and campaign participants to incentivize awareness, adoption, and engagement with the Newton Protocol.  Following completion of the initial NEWT token airdrop, the Foundation will publish a clear, auditable CSV list of recipients, including addresses and amount claimed.
  • 4% - Liquidity Support
    • This allocation of NEWT tokens is unklocked at launch and intended to increase community access to NEWT by supporting liquidity on centralized exchanges and/or decentralized onchain liquidity pools, including the payment of related expenses.  These tokens will be deployed concurrently with, or following, the NEWT token launch, depending on ecosystem development needs. 
    • To promote transparency and mitigate concerns around liquidity withdrawal, the Foundation will place liquidity pool (LP) tokens it receives under time-based or governance-controlled lockup mechanisms. These safeguards are designed to prevent abrupt removal of liquidity while preserving the ability to rebalance pools if required. Details regarding liquidity deployments and LP token status will be disclosed in the Foundation’s quarterly transparency reports.
    • A portion of this allocation will be used for structured loan agreements that include call options, allowing counterparties to purchase NEWT at predetermined terms. The underlying NEWT tokens remain subject to contractual restrictions until the option is exercised.  See Section 10: Financial Overview and Transparency for more information about these arrangements.
  • 3.1% - Onchain Ecosystem Growth Fund
    • At launch, this represents the unlocked portion of the Foundation’s Onchain Ecosystem Growth Fund that is available immediately for deployment.
  • 2.5% - Onchain Ecosystem Development Fund
    • At launch, this represents the unlocked portion of the Foundation’s Onchain Ecosystem Development Fund that is available immediately for deployment.
  • 1.9% - Onchain FoundationTreasury
    • At launch, this represents the unlocked portion of the Foundation’s Onchain Treasury that is available immediately for deployment.

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Distributed Supply

  • The Distributed Supply refers to the portion of the Circulating Supply that has been claimed, distributed, or deployed and is no longer subject to material restrictions on transfer or use. Following token launch, the Foundation will provide regular updates on the Distributed Supply as part of its quarterly transparency reports.  It is composed of the following:
  • Claimed Community Rewards
    • Tokens from airdrops or campaigns that have been successfully claimed by recipients.  Any unclaimed or unused NEWT from this allocation will remain unlocked and transferred to the Onchain Ecosystem Growth Fund for future use (e.g., future rewards, growth campaigns).
  • Distributed Validator Rewards
    • NEWT tokens that have been deployed into the Newton Protocol validator rewards pool smart contracts to be made programatically available by the Newton Protocol for claiming by stakers each rewards period.
    • Initially, approximately every seven days additional tokens will enter the Distributed Supply. Only NEWT tokens that have been made available for stakers to claim are included in this calculation.
    • These additional NEWT staking rewards will continue for approximately four years following launch, subject to Protocol governance.
  • Liquidity Support
    • NEWT tokens that are actively deployed into centralized exchanges or decentralized liquidity pools or other DeFi protocols by the Foundation, or otherwise used to support such liquidity initiatives, including paying related expenses.
    • Any NEWT tokens that have been purchased and exercised under structured call-option agreements.
  • Fund and Treasury Token Deployments
    • Any NEWT tokens deployed from the Onchain Ecosystem Development or Growth Funds or the Onchain Foundation Treasury that are no longer subject to lockups or transfer limitations.