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io.net announces token economic model
How much is the initial circulation?
According to a previous report by Zombit, io.net, the DePin project that announced the completion of a $30 million financing, announced the token economic model of the token IO yesterday. The token will serve as a payment medium for service fees within the io.net ecosystem, as well as collateral for network security. Nodes must pledge a certain amount of IO tokens to provide idle GPU computing power and receive IO rewards.
According to the latest IO token economics, the maximum supply of IO tokens is 800 million, with 500 million being allocated at launch and the remaining 300 million being distributed hourly as rewards to suppliers and their pledgers. However, the distributed rewards will continuously decrease over the next 20 years according to the deflationary model, starting at 8% in the first year and decreasing by 1.02% per month (approximately 12% per year).
In addition, the io.net ecosystem also has an automated IO token destruction mechanism. The income generated during the operation of the io.net network will be used to repurchase and destroy IO tokens.
At the genesis of io.net, the initial supply of IO tokens is 500 million, belonging to five categories: seed investors, Series A investors, core contributors, research and ecosystem, and community. However, although many media outlets emphasize the figure of 500 million tokens, this refers to the initial “supply” rather than the initial “circulation”.
According to official statements, both investor and team quotas have lock-up conditions and will not be released for the first 13 months after token issuance. In other words, only the “ecosystem, community (likely including airdrops), and increasing community reward allocations (i.e., node rewards)” will not be locked up. The exact amount of tokens that will be in circulation in the market is unknown and worth further attention. However, it can be confirmed that the initial circulating supply of tokens will be far below 500 million.
