The Keep Network is a privacy layer for blockchains that allows users and applications to store data privately. It features off-chain containers for private data called keeps. The network randomly assigns keeps to a system of participants, called signers, that help store and manage these data containers. Keep’s core application, the Random Beacon, provides this source of randomness and aims to ensure an individual signer cannot decode the information stored in the network. Each participant stakes KEEP tokens to act as a signer in exchange for a service fee.

Private staker sale The Keep team sold a total of 322,882,336 KEEP in its two private staker sales. Purchasers received the option to collect bonus tokens, ranging from 20%-50% more tokens depending on the lockup period selected (six months to two years). The longer the lock, the greater the bonus. The second sale came with a one-year lockup in addition to a 20% bonus. Among the total distributed through these sales:

• 50,638,076 KEEP will unlock after six months
• 47,168,287 KEEP will unlock one year after distribution
• 225,075,973 KEEP will unlock two years after distribution

Team, associates, and Keep SEZC allocations Keep allocated 390,598,594 KEEP to early team members and advisors, associates and vendors, and Keep SEZC (the Keep project corporate entity).

• Vendors and Associates received 851,917 KEEP, which will vest anywhere from six months to two years (most at the two-year mark)
• Early Team & Advisors received 139,746,677, which will vest after two years and come with a four-year restriction on use
• Keep SEZC received 250,000,000 with no associated vesting or lockup schedule

Public distribution Keep plans to distributed up to 20% of the KEEP supply (200 million KEEP) during its public stakedrop event, which launched on Jun. 8, 2020. A stakedrop allows users with ETH, but no KEEP, to stake their ETH in exchange for KEEP token rewards (alongside signer fees). After 6 months, participants will also need to stake KEEP to continue earning rewards. This event could last for up to 24 months with most of the rewards handed out during the first six months.

Another 5% of the KEEP supply (50 million KEEP) will be rewarded to tBTC liquidity providers on-chain to help incentivize the growth of the tBTC ecosystem. Keep has not released details on when it will start issuing these liquidity rewards

The exact timing of public KEEP distribution will be variable. Therefore, the Liquid Supply Curve here is based on the rewards model created by Bison Trails.

Slashing events All of the KEEP supply was minted when the Keep team deployed the token contract to the Etherereum mainnet. Therefore, KEEPs do not have an inflation model that results from the creation of new tokens (as with Bitcoin or Ethereum via block rewards). But the max supply of KEEPs can decrease over time through slashing. A slashing event occurs when a network signer acts against the rules of the network and, in return, has a portion of their staked KEEP burned permanently. These slashing events are unpredictable and thus not modeled into the Liquid Supply Curve.

Token Allocation Overview

• Private sale: 35%
• Early team: 10%
• Advisors: 5%
• Keep SEZC: 25%
• Staking & Protocol Incentives: 25%

Private Sale Details Keep conducted an industrial staker sale that occurred in two tranches. The Series A tranche occurred in 2018, and the Series B tranche occurred in Fall 2019/Winter 2020. All purchasers were accredited investors, sold via a 506(b) offering. To date, Keep has sold approximately $20 million worth of KEEP tokens. One covenant of the SAFT agreements that was included was the requirement that purchasers support the network by staking their KEEP tokens.

Public Distribution Plans (Stakedrop) The plan is for up to 20% of KEEP to be distributed in a public stakedrop starting June 8th, 2020. The goal is to decentralize and strengthen the network by incentivizing Ethereum community members to stake ETH for the tBTC system in order to earn KEEP rewards and continue their Keep network participation. Another 5% will be rewarded to tBTC liquidity providers on-chain, helping incentivize the growth of the tBTC ecosystem.

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