Fogo, an experimental Layer 1 blockchain built on the Solana Virtual Machine (SVM), has decided to cancel its previously announced token presale ahead of its mainnet launch scheduled for January. Instead of selling tokens, the project will now distribute them to users through an airdrop.
Earlier this week, Fogo announced plans to raise $20 million through a token presale at a fully diluted valuation of $1 billion, offering 2% of the total FOGO token supply. The presale was intended to support broader token distribution while prioritizing product delivery over capital accumulation.
Fogo Foundation Director Robert Sagurton told The Block that the original objective of the presale was to ensure wide distribution among existing users and loyal community members. However, the team later concluded that there were more effective ways to achieve this goal while maintaining focus on the public mainnet launch.
According to a project representative, the same 2% allocation will now be distributed via an airdrop. Sagurton emphasized the importance of reassessing assumptions and adjusting strategy when circumstances change.
This is not the first revision to Fogo’s economic model. On Thursday, the team released its updated token allocation plan, under which 6.6% of tokens are earmarked for an immediately tradable airdrop. Approximately one-third of the initial supply will be unlocked to fund the Fogo Foundation, while 34% allocated to core contributors will remain locked under a four-year vesting schedule. Overall, 38.98% of tokens will be unlocked at the time of network launch.
The project has also disclosed two institutional investors—Distributed Global and CMS Holdings—who will receive a combined 8.77% of the total token supply. Advisors are set to receive 7%.
In addition, 11.25% of the FOGO supply has been reserved for “community ownership,” including investors from crowdfunding sales conducted on the Echo platform and the now-cancelled Metaplex sales. Around 3,200 investors participated in the Echo sales alone, raising $8 million at a $100 million valuation in January.
Prior to canceling the presale, Fogo also burned an additional 2% of the genesis supply originally allocated to core contributors, permanently removing those tokens from circulation.
Following the cancellation of the December 17 presale, Fogo indicated that participants in its points program could receive a larger allocation. The team confirmed that snapshots have been taken of Fogo Fishers, Portal Bridge points holders, and all USDC transfers made since the initial presale announcement. These groups will be awarded “Fogo Flames.”
Fogo Flames are points that can be redeemed for FOGO tokens after the mainnet launch on January 13. The project stated that the Flames program remains central to ensuring meaningful distribution among developers, community members, and ecosystem participants.
Sagurton, a former Jump Crypto executive, said the decision to cancel the token sale reflects a renewed focus on the Flames program and will not affect the Layer 1 launch timeline.
Fogo is positioned as a next-generation blockchain leveraging Solana’s technological framework, aiming to deliver 40-millisecond block times, support real-time trade execution, and reduce malicious MEV. Its testnet, launched in July, is currently processing more than 1,000 transactions per second.
Notably, Fogo plans to become the first blockchain to implement Jump Crypto’s newly launched validator client software.
