Based DEX Commits 60% of Token Supply to Community Rewards and Ecosystem Growth

Forget the VC playbook—this DEX just flipped the script. A staggering majority of its token supply isn't going to insiders or early backers. It's being funneled directly to the people who actually use the thing.

The Community-First Allocation

We're talking about a clear, decisive move: a full sixty percent of the total token pie is earmarked for community incentives and ecosystem development. This isn't a vague promise or a future roadmap item. It's the foundational tokenomics, baked into the protocol from day one.

Rewards, Not Handouts

The model targets active participants—liquidity providers, traders, governance voters, and builders deploying on the chain. It creates a direct feedback loop: contribute to the network's health, get rewarded with its native asset. It bypasses the traditional, top-down distribution that often leaves retail holders with the crumbs.

A Gamble on Alignment

This level of allocation is a bold bet. It bets that aligning long-term incentives with the user base will foster stronger loyalty and more organic growth than any marketing budget could buy. It also puts immense pressure on the project to deliver real utility—because if the tokens are worthless, no amount of percentage points will matter.

Sure, cynics will say it's just another token distribution dressed up in decentralization theater. But in a landscape still haunted by the ghosts of pre-mine scandals and venture dumps, putting 60% on the table for the community isn't just notable—it's a provocation. The real test? Whether the 'community' turns out to be a few whale wallets or an actual, thriving ecosystem. After all, in crypto, the devil isn't just in the details—it's in the wallet distribution charts.

How will Base Foundation allocate its tokenomics?

The allocation breakdown splits 36% to the community, 23.64% to ecosystem & community rewards, 20.36% to investors, and 20% to Core contributors.

The genesis distribution of 360M $BASED will focus on the users and partners who have contributed to the ecosystem to date. The intention is to distribute tokens to early and existing community members and support ongoing participation.

Of the 36% committed to community allocation, 23.5% of the total supply (235,000,000) is allocated to Based community members who participated in Season 1 and Season 2 points campaigns, PUP holders, BasedPal NFT holders, and launch partners supporting the TGE.

Those tokens are intended to be claimable when claims open (targeting March 2026, date to be confirmed) with no vesting period.

7.5% of the total supply (75,000,000) will also be reserved for the Ethena community, a nod towards their strategic investment and the collaboration on HyENA.

Eligibility criteria and claim details will be announced by the Ethena Foundation, but the unlock schedule will mean that 20% of the allocated tokens unlock monthly at the rate of 6.67% per month for the first three months.

After month 12, 40% unlocks at the one-year anniversary, and between months 13–18, the remaining 40% vests linearly over six months. 5% of the total supply (50,000,000) has been set aside for Season 3 participants.

The third season is scheduled to run through May 4, 2026 and tokens earned during Season 3 will be claimable on May 11, 2026, with no vesting period.

The reaction to the news has not been all positive though, with most of the complaints being about the allocations to partners like Ethena from the 36% community allocation, leaving only 16% for farmers of the 1st and 2nd seasons, who believe they deserve more for their contributions.

What the $Based token will be useful for

The token will be useful as holding or staking it will reportedly  unlock benefits across the Based platform (subject to program terms and change over time). Those benefits can range from reduced fees on trading and prediction markets to rewards on the Based Visa debit card (including up to 8% cashback, subject to program terms), higher card limits at higher holding tiers, lower on/off-ramp fees, discounts with Based Mall merchants and access to future project launchpools.

$BASED may also be used as a medium of exchange on Based Mall, where users can pay with stablecoins and may use the token to purchase items at a discount. Furthermore, $BASED will support platform governance mechanisms (where applicable), enabling token holders to participate in shaping the platform’s direction.

Holders of the token may also be given access to launchpools and agentic AI features in the future as well as the right to participate during governance voting on the platform’s decisions.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.