Tokenomics
We’re thrilled to share the release of our Tokenomics Paper, ahead of the Rails Token launch in December 2025.
The paper outlines the vision and design of the Rails Token, while the summary below highlights what it means for you as a Rails user.
WARNING: Be alert and protect yourself from token scams by reading our Airdrop Safety Notice.
Important Dates
Sept 22nd
User Participation Point allocation is calculated at 12 AM UTC.
Participation Points are issued to eligible users' Rewards Wallets by 5pm EST.
Sept 29th
Phase 1 of the Rewards Program ends at 11:59 PM UTC Sept 28th.
Phase 2 begins 12 AM UTC Sept 29th (details coming soon).
December (TBC)
The Rails Token is listed on a major exchange.
Eligible Rails Play users will receive their Token rewards (details coming soon).
The Rails Rewards Program (Phase 2) ends, and users' Token rewards will be calculated using the relevant conversion rate based on their points earned during each phase.
Rails users can convert their Token Points to Rails Tokens subject to a vesting schedule (25% immediately unlocked).
Phase 3 of the Rewards Program begins. New rewards are issued as Token Points. Details will be available prior to the launch.
Vesting Schedule
Not all tokens are unlocked at launch by design (learn more), but the vesting framework aims to balance rewarding early users with long-term sustainability of Rails and the Rails Token. The key details are:
25% of user rewarded tokens are unlocked immediately at token launch.
The remaining 75% of tokens follow a 12-month linear vesting schedule (6.25%/month).
Users can accelerate vesting by actively trading on the platform.
Regular Vesting
The following table details how tokens the 10,000,000 user rewards token pool is unlocked based on the vesting schedule.
0 (Token Launch)
2,500,000
25.00%
1
3,125,000
31.25%
2
3,750,000
37.50%
3
4,375,000
43.75%
4
5,000,000
50.00%
5
5,625,000
56.25%
6
6,250,000
62.50%
7
6,875,000
68.75%
8
7,500,000
75.00%
9
8,125,000
81.25%
10
8,750,000
87.50%
11
9,375,000
93.75%
12
10,000,000
100.00%
The below table demonstrates cumulative token unlock volumes for users granted between 500 and 10,000 tokens:
0
25%
125
250
1,250
2,500
4
50%
250
500
2,500
5,000
8
75%
375
750
3,750
7,500
12
100%
500
1,000
5,000
10,000
Accelerated Vesting
Accelerated vesting rewards active platform users by allowing faster incremental token unlocks through Rails participation, in addition to regular vesting. Users hitting certain trading milestones can unlock additional tokens beyond the standard vesting schedule which incentivizes platform engagement.
How accelerated vesting works:
At the start of each month, we'll assess your cumulative trading volume since the token launch.
If you've hit a new trading milestone, you'll qualify for an incremental unlock.
If you jump two tiers, you only receive one incremental unlock for the highest tier.
Your new monthly token unlock is determined by adding your earned incremental unlock (2.5%-25%) to the standard linear vesting unlock (6.25%).
If a new tier would push your total vested tokens above 85%, all remaining tokens will then vest linearly. No more accelerated unlocks are possible. This is to ensure at least some portion of all tokens vest over 12 months to avoid large token dumps.
This process repeats monthly until all your tokens are vested or 12 months have passed.
$500,000
2.50%
$750,000
5.00%
$1,000,000
7.50%
$2,500,000
10.00%
$5,000,000
15.00%
$10,000,000
20.00%
$50,000,000
25.00%
We've created a Rails Token Vesting Calculator. Click the button below, make a copy, then track or estimate your volume to see your unlocks!
Regular and Accelerated Vesting Examples
The below table demonstrates Regular Vesting on a 10,000 token grant, assuming no Accelerated Vesting Milestones are hit throughout the 12 month period:
0
$50,000
25.00%
2,500
2,500
1
$60,000
31.25%
625
3,125
2
$80,000
37.50%
625
3,750
3
$85,000
43.75%
625
4,375
4
$90,000
50.00%
625
5,000
5
$120,000
56.25%
625
5,625
6
$125,000
62.50%
625
6,250
7
$175,000
68.75%
625
6,875
8
$200,000
75.00%
625
7,500
9
$250,000
81.25%
625
8,125
10
$300,000
87.50%
625
8,750
11
$400,000
93.75%
625
9,375
12
$450,000
100.00%
625
10,000
The table below demonstrates how accelerated vesting would apply to the same 10,000 token grant by hitting a trading volume milestones within the same period, shortening the unlock period by 4 months:
0
$50,000
0.00%
0.00%
25.00%
2,500
1
$100,000
0.00%
6.25%
31.25%
3,125
2
$1,100,000
7.50%
6.25%
45.00%
4,500
3
$1,150,000
0.00%
6.25%
51.25%
5,125
4
$1,200,000
0.00%
6.25%
57.50%
5,750
5
$5,000,000
7.50%
6.25%
71.25%
7,125
6
$50,000,000
10.00%
6.25%
87.50%
8,750
7
$60,000,000
0.00%
6.25%
93.75%
9,375
8
$70,000,000
0.00%
6.25%
100.00%
10,000
Frequently Asked Questions
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