Datagram Capsule

What is a Capsule?

A Capsule is an NFT that represents ownership rights to a specific allocation of locked $DGRAM tokens. Unlike traditional vesting schedules that are tied solely to a wallet or smart contract, the Capsule is designed for flexibility, allowing you to hold, transfer, or burn it to claim vested $DGRAM tokens.

How do Capsules work?

  • Issuance and Allocation: Each Capsule is linked to a specific token allocation and a 12-month vesting schedule. 10% of the allocated $DGRAM tokens unlock at mainnet launch and become immediately available for claim. The remaining 90% of $DGRAM tokens vest on a daily, linear basis over the subsequent 12 months. All nodes within a tier designated to receive a Capsule will be issued the corresponding Capsule for their respective tier and tranche.

  • Eligibility and Node Operation: To redeem and burn a Capsule, the wallet holding the Capsule must be operating a qualifying Full Core node license for a minimum of 100 hours. The claim option will only become available once this operational threshold is met. If the Capsule is transferred to a non-eligible wallet or the node becomes inactive, the requirement must still be fulfilled before redemption can occur.

  • Claiming: Holders may claim unlocked and vested $DGRAM tokens at any time. If a Capsule is redeemed (burned) before the completion of the 12-month vesting schedule, any unlocked and vested $DGRAM tokens up to the date of redemption will be claimable by the wallet holding the capsule. Any unvested $DGRAM tokens at the time of redemption are not claimable and are subject to redistribution and burn mechanisms described below.

  • Redistribution and Burn Mechanism: Upon early redemption, 50% of any unvested $DGRAM tokens are permanently removed from the allocation pool (burned) and the remaining 50% are proportionally redistributed to other active Capsules. This mechanism is intended to encourage longer-term participation and support ecosystem sustainability.

  • Transferability: Capsules may be transferred to third parties, subject to applicable terms and conditions. Any recipient of a transferred Capsule assumes full ownership of its value including both vested and unvested tokens as well as the remaining vesting schedule and all associated eligibility requirements.

Why Capsules offer a better alternative?

  • Combats Airdrop Farming & Dumping: Traditional upfront token distributions often encourage exploitative behavior and rapid selling. Capsules embed value into an NFT-based structure, discouraging immediate sell-offs and fostering longer-term alignment among holders.

  • Enhanced Flexibility Compared to Rigid Vesting: Conventional long-lock vesting schedules can be inflexible. Capsules provide the option to claim unlocked and vested tokens incrementally or to exit entirely through a single redemption event, balancing autonomy with liquidity.

  • Protects Network Integrity: The early redemption mechanism—burning and redistributing unvested tokens—acts as a deterrent to opportunistic exits. This ensures value flows back to committed participants and reinforces the stability of the network.

  • Conditional Transferability: Transferability enables secondary market participation while maintaining vesting discipline. Any new holder must meet the operational requirements, such as running a qualifying node, before claiming tokens.

Capsule expiration timeline

Capsules will remain valid for 18 months after the Token Generation Event. During this period, holders can claim their vested tokens, transfer their Capsules, or redeem them early if they choose. Once the 18-month window closes, any remaining unclaimed tokens inside the Capsule will be forfeited and the Capsule itself will expire. This ensures that allocations are either used or returned to the ecosystem in a timely manner, preventing dormant supply from lingering indefinitely.

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