API3 (API3)

Tokenomics & Utility

API3 is an ERC-20 token on Ethereum. Its clearest roles are governance and staking. Holders can stake tokens in the DAO’s pool to gain voting power, either voting directly or delegating that power. The DAO can make decisions about matters such as project funding and staking rules. API3’s staking design also pays rewards according to parameters that governance can change. (blog.api3.org)

Original distribution

The original allocation set aside 30% for the founding team, 25% for an ecosystem fund, 20% for public distribution, 10% for seed investors, 10% for partners and contributors, and 5% for pre-seed investors. Those figures describe the starting distribution of 100 million tokens. Staking rewards are part of the token’s economic design, so the original allocation and the supply at a later date describe different things. (tokenomist.ai)

The token’s role is distinct from paying for every data feed. Developers can buy feed plans through API3 Market, and API3 has described managed-feed payments in a network’s native currency. OEV rewards to applications are also paid in native network currency. The API3 token chiefly connects holders to the DAO’s decisions and staking system. (docs.api3.org)