Union's U Token Structure: Strategic Balance Between Community Incentives and Core Contributors

The interoperability protocol Union has unveiled its comprehensive tokenomics framework, revealing how 10 billion tokens will be distributed across multiple stakeholders. Union’s total supply of 10 billion tokens marks a significant milestone, with 1,919,050,000 tokens currently in circulation—representing 19.19% of the total initial supply before any inflation kicks in.

Token Allocation Breakdown

The accounting for token distribution reveals a carefully engineered ecosystem approach. Core contributors receive the largest single allocation at 20%, matched equally by foundation reserves, ensuring long-term protocol development. Strategic investors claim 21.4% of tokens, while the DAO treasury is assigned 12.5% for governance decisions. Ecosystem partners benefit from 14.1% allocation, and the community incentive pool captures 12% to encourage participation and adoption.

Inflation Mechanics and Long-Term Sustainability

Union implements a gradual inflation strategy starting at 6% annually. Rather than remaining static, this rate decreases by 10% each year, progressively moving toward a 2% floor. Notably, this inflation percentage operates independently of staking volumes—the protocol maintains a fixed inflationary trajectory regardless of how many tokens users lock up, providing predictability for long-term planning.

The tokenomics design suggests Union is prioritizing measured growth while protecting existing token holders through declining inflation rates over time. This approach contrasts with models that tie inflation directly to participation metrics, offering investors clarity on long-term dilution expectations.