PIP-1: Project 0 Token Allocation Structure

[masterzorgon]

Overview

This proposal outlines the initial token allocation framework for the upcoming Project 0 token launch.
The goal is to align long-term contributors, investors, and users around a sustainable and transparent token model that ensures fair distribution and ongoing incentive alignment between stakeholders and the broader DeFi ecosystem.

The proposed structure allocates tokens across five key categories — Community, User Incentives, Team, Investors, and Foundation — to ensure decentralization, reward early users, and fund continued development and ecosystem growth.

This proposal serves as the starting point for community discussion ahead of formal governance approval in Q4, 2025.

Context

Project 0 (P0) was designed to unify margin trading, lending, and liquidity across Solana and other chains — creating a single, composable margin layer for DeFi.
Over the past year, the P0 team has iterated on integrations (e.g., MarginFi, Kamino) and community programs (MarginFi + P0 points) to bootstrap adoption and reward users.

The Project 0 token will formalize these incentive programs and introduce a governance mechanism to steer long-term development, ecosystem growth, and integrations across new networks such as Ethereum and Hyperliquid.

A transparent allocation model is critical to ensuring sustainable growth and preventing short-term rent-seeking behavior. This proposal sets the foundation for that structure.

Reasoning

The proposed allocation model aims to balance community ownership, protocol sustainability, and alignment among all key stakeholders.
The structure reflects three core principles:

1. Community-first — Early users, traders, and integrators receive significant ownership to reinforce the ethos of open participation.

2. Long-term alignment — Team and investor allocations are vesting to ensure sustained commitment to protocol success.

3. Ecosystem sustainability — The Foundation allocation guarantees long-term funding for integrations, audits, grants, and liquidity support.

Unlike traditional launches that rely on heavy insider allocations or high FDV, Project 0’s token model emphasizes accessibility, fair distribution, and alignment with the growth of DeFi.

Proposed Allocation

Category	Allocation	Vesting / Notes
Community (Initial)	20%	15% to users (no vesting), 5% to power users & integration partners (vesting), and potentially, 1% random power user (vesting)
User Incentives	20%	Distributed post-TGE to grow adoption and liquidity
Team	20%	Vesting; rewards contributors building and maintaining Project 0
Investors	20%	Vesting; early supporters and funders
Foundation	20%	Long-term ecosystem support; managed by token holders via governance

Additional Details

• Community Allocation

  • 15% distributed to all users based on MarginFi and P0 points.

  • 5% reserved for power users, integration partners, and ecosystem builders.

  • Proposal: 1% allocated to a randomly selected power user prior to TGE (based on combined MRGN + P0 activity).

  • Power user allocations and the random selection are subject to vesting.

• User Incentives

  • 20% reserved for ongoing growth initiatives post-TGE.

  • Supports new integrations, liquidity campaigns, and protocol usage incentives.

• Foundation

  • The Project 0 Foundation will steward this allocation to fund ecosystem development, partnerships, and grants.

  • The Foundation will be community-managed via token governance.

Call to Action

Community members are invited to share feedback and suggestions ahead of the final decision in Q4 2025.

[Shubhamsolana]

looks fine to Me, It’s balanced between all the entities

[spydee]

Sounds good… but I would like to whether it is based on combined points of mrgn and P0 pr ratio based ?

[bilecikli_sol]

First of all, hello everyone. I’ve been actively following and using this project for 2 years. I have some important questions about the token.

When selecting the Power Users, will you take the community’s opinion into account? For example, will the first 500 users be considered Power Users, or will it be those who hold your synthetic Solana? How will you ensure a fair distribution between these groups? These details are very important to us.

User Incentives	20%	Distributed post-TGE to grow adoption and liquidity

My personal suggestion is that instead of using the 20% share allocated for user incentives to increase APY in pools, it would make more sense to implement a seasonal system and distribute airdrops across 4 seasons. This would both increase our TVL and reward loyal users.

My last and most important question is: will the token have a use case at TGE? In my opinion, the most important thing for a token is its utility, and for the team, it’s managing the token like a company share—by including it in the revenue sharing meta. Because we can see that various tokens (like Marinade, Jito, and Orca) have only recently started implementing revenue sharing after years of resistance.

We now know that in this huge crypto wasteland, even the most valuable project tokens don’t hold value unless they offer meaningful profit distribution (see: Jupiter). For this reason, you must carefully balance this dynamic and clearly explain to the community how you’ll manage token inflation and Project 0’s revenue distribution. Give us that confidence so we can become your investors. Let users hold onto their airdrops and even buy more instead of selling them.

I hope we can have more discussions about this topic in the coming weeks.

[macbrennan]

“Vesting”: 4y vesting, 1y cliff. That could’ve been clearer

[Zeref]

It looks good but more details are needed:

• How long the tokens will be vested for each group.
• How early & power users are chosen? is it just points & their last activity or those who stick for years and kept using the product even when most farmers took out their liquidity.
• What’s the token utility? will there be any use case beside governance?

I also don’t see the point of the 1% to a random power user, instead it would be better to see something like the most loyal 10-50 users split that 1% as a token of appreciation.

[runtzonly]

Hi all,

Few things I think could be improved. I’d recommend reducing User Incentives to 2% and running it as a trial to see how it affects TVL growth and revenue over a 3 - 6 month period.

Move 13% additional to Foundation so it can top up user incentives if the program is successful.

Move remaining 5% for additional airdrop (time length of MRGN and disgruntled OG users warrants a larger drop imo to get more eyes on the new product).

additionally the “1% to a random power user” sounds cool but if the goal is to make whales ape I would split that into 10 - 20 or so winners (0.1% - 0.05% each)

That is still a large allocation for an individual for a product of this scale and makes it seem actually attainable rather than impossible.

Very excited for this new vision, it’s been needed for a long time in DeFi

[project0user1]

Trim down portion (60%) going towards investors, team and foundation, bringing both initial airdrop up and increasing the rate and period of which a post TGE incentive campaign can be ran.

[Chromadera]

Personally looks good to me. Just needs more clarity on vesting and token usecase

[MarklarW]

Excellent post (From bilecikli_sol) – I agree with all of these points, and also would like to emphasize the importance of a clear token use case. There’s not much incentive for the average user to hold the token if the only use case is “governance“ – there needs to be some kind of utility / revenue sharing.

I will also add that I think we should scrap the 1% to a random power user. Not only have we not defined what a power user is – I just don’t think this gimmick really adds anything productive for the token (unless I am the chosen power user, of course).

[mkgmenon]

Overall looks OK to me. Like many suggested 1% to single power user can be extended to more.

[Crocsjerry28]

I think it will be better to remove the vesting on the 5% reward for power users

[VzodIac]

Allocations seems pretty fair to me. I want you to clarify what “power user” means. Who can be eligible as power user. Renevue model should also be clarified. A sustainable revenue sharing would be great. Then holders not only believe to project and may have expectation to earn passive income while protocol grows.

[broxcellence]

15% is really good but make sure to purge wallets inactive since long time, also consider setting min points requirement atleast 500k-1m this is pretty low and any genuine user would have atleast 500k-1m points.

[kubrisky]

Looks good, but more details about the vesting (time period and amount) + the utility of the token would be nice to have. Thanks team!

[SumDigits]

There’s not much incentive for the average user to hold the token if the only use case is “governance“ – there needs to be some kind of utility / revenue sharing.

Absolutey! Either perks (e.g. interest boosts for supplying funds / lower interest on loans) or rev share would help the token gain traction and encourage folks to not only hold but accumulate it. Emissions for staking could also work, but that is problematic as it diverts funds that could reward platform use. We are almost in 2026, tokens have to ‘do something’. Let’s learn from the struggles of JUP and JTO (who are both mid-course correction).

[adan257]

I’d suggest removing wallets that didn’t claim their MarginFi points before the October deadline and filtering out users who only interacted once or were clearly farming. Also, the 1% random user idea doesn’t really make sense — it feels like a gimmick. That portion would be better used on something like a drop to a strong Solana-native community (Mad Lads, for example or anything else marginfi got a bad rep

[teecee]

Can you clarify the point of 1% to a random power user?
Mac mentioned exploring tokens for transaction fees in one of his interviews, can we get more details on that?
Any plans to use token tier lists for added borrow/lend incentives as they do with BNB?
Will the 15% allocated to community be 1:1 based on points?

[bruce]

overall agreed. what is the point of this single powerful user?

[mobilestuitelio]

• Absolutely agree with @adan257 and @/broxcellence on making a better distrib.
• @bilecikli_sol , @/MarklarW and @/SumDigits are also on point here. Utility must be great and ready on-TGE.