Secret Network issues 1.079B SCRT, diluting existing supply by about 75%
AI Market Summary
Secret Network approved Proposal 365 and minted ~1.079B SCRT via the v1.26.0 upgrade, lifting total supply to ~1.443B and diluting existing holders' aggregate ownership by ~75%. With ~308.4M SCRT immediately liquid and 5% ongoing inflation, near-term sell-pressure and governance risk rise. SCRT Labs exiting support on September 1 shifts operational responsibility to the community, increasing execution and continuity uncertainty.
Impact level
● High
Affected assets
SCRT/USDT+0.06%
AI Insight · SCRT/USDTAI Insight
▼ Bearish
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ChainCatcher reported, citing CryptoSlate, that Secret Network—a privacy-focused public blockchain built on Cosmos—minted about 1.079 billion SCRT in a single issuance after Proposal 365 was approved. The mint was executed through the v1.26.0 upgrade on Aug. 21, intended to keep the network running ahead of SCRT Labs ending support on Sept. 1.
After the upgrade, total supply rose to roughly 1.443 billion SCRT. Existing holders saw no change in their absolute token balances, but their aggregate ownership share fell to about one-quarter of the network, implying approximately 75% dilution.
The newly issued SCRT is allocated as follows: 299 million each to the foundation and the core development program; 178 million to an ecosystem fund; 72 million each to advisors, R&D, and validators; 43 million to builders and relayers; and 44 million earmarked for remediation.
Under the v1.26 economic model, around 308.4 million SCRT becomes liquid immediately on day one, and the system sets an ongoing inflation rate of 5%.
The community had previously rejected Proposal 360, which would have migrated to an Arbitrum snapshot. SCRT Labs said it will stop development and support for the Cosmos-based L1 on Sept. 1 regardless of the vote outcome. The chain has no planned shutdown, and responsibility for future development, infrastructure, and validator participation will shift to the community. The issuance is designed to fund and incentivize continued operations.
