CryptoSlate
Secret Network executed a 1.079 billion-SCRT mint on Aug. 21 via Proposal 365, diluting existing holders by roughly 75% to fund the Cosmos-based layer 1's survival ahead of SCRT Labs' Sept. 1 support cutoff. The mint assigned 299 million SCRT each to foundation and core-development programs, 178 million to an ecosystem fund, and 72 million each to advisors, R&D, and validators, with builders receiving 43 million and remediation another 44 million. Roughly 308.4 million SCRT became liquid on day one, and the v1.26 economics set ongoing inflation at 5%. The chain itself keeps running: nodes reported the v1.26.0-community-continuance upgrade and continued block production past 26.8 million.
Why it matters
The mint is the first move in a community handoff forced by SCRT Labs' decision to end development, infrastructure, and validator support on Sept. 1. Existing holders kept their absolute balances, but their collective share of the network collapsed to roughly 25% in a single block, the harshest supply shock the Cosmos L1 sector has seen in years. The proposal also leaves development, validator participation, and infrastructure dependent on whoever steps in to absorb the workload. In the same voting cycle, the community rejected Proposal 360, SCRT Labs' Arbitrum snapshot signaling proposal, removing a planned bridge to the L2 that would have given SCRT holders a parallel exit.
Market impact
The allocation structure puts 308.4 million SCRT into circulation immediately and runs a 5% annual inflation rate from v1.26 onward, layering a steady sell-pressure tail onto the one-time dilution. Foundation and core-dev buckets alone control 598 million newly minted SCRT, a war chest large enough to fund multi-year operations but also large enough to overhang price if any of it rotates out. The harder test starts Sept. 1: if validator participation drops or community backers cannot sustain the technical workload, the runway funded by the mint buys time but not durability.
Frequently asked questions
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Why did Secret Network mint 1.079 billion SCRT?
Proposal 365 passed on Aug. 21 to fund the community continuance effort after SCRT Labs announced it would end development and infrastructure support on Sept. 1. The mint gives the community-run network runway to absorb the technical workload left behind.
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How much were existing SCRT holders diluted?
Existing holders kept their absolute balances, but their share of total supply collapsed from roughly 100% to about 25% in a single block, the largest one-shot dilution the Cosmos L1 sector has seen in years.
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What happens to Secret Network on Sept. 1?
SCRT Labs ends development, infrastructure, and validator support on that date. The chain itself is not shutting down, but ongoing operation depends on community backers and remaining validators absorbing the technical workload.
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Where did the 1.08B newly minted SCRT go?
Foundation and core-development programs received 299M each, the ecosystem fund 178M, and advisors, R&D, and validators 72M each. Builders got 43M and remediation 44M, with roughly 308.4M SCRT liquid on day one.
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Why did voters reject Proposal 360?
Proposal 360 was SCRT Labs' signaling proposal for an Arbitrum snapshot that would have created a parallel L2 bridge. Its rejection means the snapshot terms did not receive an on-chain community mandate, removing the planned L2 exit path.
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