Plasma and XPL

XPL Sale

The token sale values Plasma at $500M fully diluted, with 10% of total supply (1 billion tokens) available for public purchase at $0.05 per token. This valuation matches the recent private funding round led by Founders Fund. The company previously raised $24M across seed and Series A rounds from investors including Framework, Bitfinex/USDT0, Peter Thiel, and Paolo Ardoino.

The sale mechanism operates through a multi-phase process. During the initial deposit period, participants place stablecoins (USDT, USDC, USDS, DAI) into an Ethereum-based vault. Allocation is determined by time-weighted deposits rather than deposit size alone - the longer funds remain deposited, the larger the guaranteed allocation. Deposits are deployed through Veda's vault infrastructure into Aave and Maker protocols during this period. The initial deposit cap is $250M, but can be increased.

Following the deposit phase, a mandatory lock-up period begins where no withdrawals are permitted. This lock-up is for a minimum of 40 days post-sale. The actual token purchase occurs later, with participants able to purchase their guaranteed allocation plus potentially additional tokens if available. Token distribution and stablecoin withdrawal only occur upon Plasma's mainnet beta launch. Notably, U.S. participants must verify accredited investor status and face a 12-month lock-up period for token distribution, compared to the standard timeline for other jurisdictions.

Napkin Math

We expect Plasma to allow 3-4 rounds of deposits over the deposit phase, with the total deposit reaching $1.5B to $1.75B. At this level, if Plasma launched at $2B TGE, APR on deposits would range between 35-50%, if the lock up was for 3 months, and range between 25-40% if the lock up was for 4 months. The 3-month lock-up assumption is based on Defiyst’s recent model - which we assume is relatively accurate given that Split Capital invested in Plasma in earlier rounds. In addition, given that Split Capital created Split Capital Plasma TVL USD Coin market on Wildcat Finance, seeking 5M USDC at 18% APR, we expect the yield to be at least 18% APR.