Magic Newton Foundation is proud to introduce NEWT, the native token of the Newton Protocol—a decentralized infrastructure layer that uses a combination of trusted execution environments (TEEs) and zero-knowledge proofs (ZKPs) to enable automated onchain finance that you can trust. Learn more about the agentic future in our litepaper. 

NEWT serves as the foundation for programmable, interoperable, and sovereign digital asset management, aligning incentives across users, developers, and stakeholders.  Our approach to launching NEWT reflects the same principles of fairness, transparency, and safety built into Newton Protocol itself.  Stay tuned to Magic Newton Foundation’s official channels to be informed of the upcoming token launch. 

Setting the New Standard for Token Disclosures

The crypto industry stands at a critical juncture. Unlike public capital markets in traditional finance, which are underpinned by rigorous disclosure standards, crypto assets and onchain companies have long held on to the practice of minimal transparency, enabling numerous fraudulent activities throughout the crypto industry’s past. This information asymmetry between token-issuing insiders and the public has significantly hindered broader participation into the ecosystem, and instead emboldened skeptics who doubt the great potential of a new digital asset class. 

Recent scandals with prominent token projects have led to further outcries and a new level of urgency for much higher transparency. With the launch of the NEWT token, Magic Newton Foundation aims to set a new standard for establishing token market transparency — a standard that other legitimate founders and teams, hopefully, will also embrace to become the norm. Our unique approach combines a robust set of disclosures coupled with blockchain-enabled transparency, verified on a regular basis by independent third parties.

Specifically, the Foundation is establishing three primary practices in its framework to establish verifiable trust in its operations:

  1. Magic Newton Foundation’s NEWT will be held in multiple publicly-tagged wallets onchain, each governed by a written, predefined policy specifying how the funds can be used.
  2. If any of the Foundation’s unlocked NEWT are sold, the proceeds will be held in onchain tagged wallets as stablecoins and/or other digital assets until they are deployed, at which point they may move offchain for fiat transaction rails. Note that the Foundation is strictly prohibited from selling any locked NEWT. 
  3. If any amount of proceeds generated from NEWT dispositions are moved away from those tagged wallets and held offchain (e.g., for treasury diversification purposes), then such amounts held offchain will be disclosed by the Foundation as part of its quarterly transparency reports. In addition, the Foundation commits to independent third-party verification of such transfers and amounts held offchain.

Adherence to these practices represents a dramatic improvement over projects that hold substantial amounts of their assets in offchain or offshore accounts in an opaque, undisclosed manner and should significantly reduce the magnitude of potential fraudulent schemes possible in any token project.

To help set a new standard for transparency in token launches, Magic Newton Foundation has published a comprehensive disclosure packet which can be viewed here. Inspired by the SEC’s Digital Asset Disclosure Guideline, the packet will outline the Foundation’s governance, tokenomics, allocation and vesting schedules, and other key information relevant to the structure and operation of the Newton Protocol. It will also address areas often overlooked in other launches, including the terms of token loan arrangements and the Foundation’s commitment to a structured sale program for project leadership. The Foundation will continue this standard through quarterly transparency reports, which will provide general expense breakdowns and detailed reporting on the use of NEWT tokens and funds.

Magic Newton Foundation believes that practical, well-designed transparency — where token projects share key information openly and equally with their communities — isn’t just good practice, it’s a vital signal of trust and maturity that the crypto industry needs in order to continue to grow and succeed. As one of the first projects to self-implement such a new, higher standard of transparency, the Foundation acknowledges that there will be room for improvement in its approach and is committed to continually refining it. Magic Newton Foundation views this step as the first of many to come and welcomes all other token projects to join us in redefining the transparency framework for crypto.

Token Utility

The NEWT token has four primary functions within the Newton Protocol:

  1. Staking for Protocol Security

NEWT staking will be available to enable network participants to contribute to the security of  the Newton Network. Holders will be able to delegate their NEWT tokens to staking validators of the protocol, which runs on proof-of-stake (dPoS) consensus. By contributing to securing the network, the staking validators and delegators earn staking rewards in exchange for their work.

  1. Token for Gas / Fees

NEWT will be the native token of the Newton Protocol powering the decentralized economy of verifiable agents of Newton. For users, NEWT is used as the protocol gas fee upon issuing or revoking private, verifiable on-chain session/intent to Newton agents with zero knowledge proof verified permissions. For Newton, each inference request to agent(s) corresponds to one session permission issued by the user. It is intended that the Protocol will implement a fee market similar to EIP-1559 to determine transaction ordering within each block.

  1. Token for Newton Model Registry

Model developers will be able to list AI models/agents in the Newton Model Registry (NMR) so operators can serve them. When listing in the NMR, NEWT registration fee will need to be paid and listing is subject to DAO review/voting. When the models are picked up and served by operators, the model developers will receive a royalty share of NEWT fees.

  1. Governance

The Newton Protocol and its ecosystem will decentralize over time, including establishing a DAO and enabling the community to act and decide on deployment of ecosystem funds, model registrations, fees, and project priorities. Once the Newton Protocol has sufficiently developed, users who stake their NEWT will be entitled to vote in the governance process to help guide the growth and development of the Newton Protocol.

Tokenomics

Supply: 

The total fixed supply of NEWT is 1 billion tokens (1,000,000,000).  At launch the circulating supply of NEWT will be 215,000,000 tokens (21.5%).

Distribution: 

Newton will have the following distribution, with 60% of supply allocated to Community categories and 40% to Internal categories. 

“Community” allocations refer to tokens set aside to directly support the growth, technical development, and decentralization of the Newton Protocol through initiatives such as ecosystem grants, network rewards, community rewards, and operational support via the Onchain Foundation Treasury. The Treasury supports the operational capacity of the Foundation to serve the Protocol and its community—covering essential functions like contributor coordination, governance support, and public infrastructure that enable the ecosystem to thrive.

“Internal” allocations refer to tokens allocated to Core Contributors, Early Backers, and Magic Labs in recognition of their foundational work in building and supporting the launch of the Protocol. These allocations represent essential resources dedicated to the continued stewardship and development of the ecosystem.

  • Token allocations to the Onchain Ecosystem Development Fund, Onchain Ecosystem Growth Fund, and Onchain Foundation Treasury are subject to a 48-month linear unlocking schedule, with 20% of the respective allocations unlocking at launch allowing immediate funding of critical early developmental, growth, and operational needs for the Protocol. 
  • Token allocations to Core Contributors, Early Backers, and Magic Labs are subject to a 36-month vesting period with an initial 12-month lock up.
  • Allocations of locked or unvested tokens—whether from Internal or Community allocations—are prohibited from selling or transferring those tokens through secondary OTC transactions until they are fully vested and unlocked.

Category Details

  • Initial Airdrop, Community Rewards:
    • These tokens will be distributed to early users and participants of Newton Protocol’s growth programs. More details on airdrop allocation and eligibility will be shared soon.
  • Network Rewards:
    • These tokens will be used to strengthen the security of the Newton Protocol by encouraging staking of the NEWT token through additional validator staking incentives. 
  • Liquidity:
    • These tokens will be used to support liquidity on centralized exchanges and decentralized onchain liquidity pools to increase community access for NEWT. 
    • A portion of this allocation will be used for call-option loan agreements with strategic partners.
  • Onchain Ecosystem Growth Fund:
    • Magic Newton Foundation can use NEWT tokens and proceeds in this fund for any campaigns, partners, or programs that support the growth of the Newton Protocol ecosystem. This includes initiatives such as partnership campaigns, user-acquisition programs, and public relations campaigns. This is a separate category from the Ecosystem Development Fund, and will not fund development on the core protocol or technical advisory services. 
  • Onchain Ecosystem Development Fund: 
    • Magic Newton Foundation can use NEWT tokens and proceeds in this fund for the development and technical improvements of the Newton Protocol. For example, hackathons, developer rewards, technical development services, and incentive programs for core infrastructure development.
  • Onchain Foundation Treasury:
    • Magic Newton Foundation can use these NEWT tokens at its discretion for ongoing operational purposes and initiatives in support of the Newton Protocol, such as paying vendors or hiring employees.
  • Core Contributors: 
    • These NEWT tokens have been allocated to Core Contributors to the Newton Protocol, which includes active employees and advisors of Magic Labs. 
  • Early Backers:
    • These NEWT tokens have been allocated to investors who backed Magic Labs at various stages in its development. 
  • Magic Labs:
    • These NEWT Tokens have been allocated to Magic Labs for its contributions to the development of the Newton Protocol, and will be used for ongoing operational needs, including funding for the continued development, maintenance, and expansion of products within the Newton Protocol ecosystem.

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