Revised tokenomics for healthy ecosystem growth and an incentivized stakeholder community
With the launch of AIOZ W3S imminent and a packed 2024 roadmap (opens in a new tab), we are excited to announce that we have made considerable changes to the tokenomics that underpin AIOZ token.
This update is in an effort to satisfy both the future demands of our rapidly expanding ecosystem of infrastructure products and dApps, and also to ensure that our various stakeholders are appropriately rewarded for their support and participation in the Network.
After the successful launch of the AIOZ Network Mainnet back in December 2021, a 9% inflation rate was applied to the AIOZ Network token, which came into effect from March 2023 due to block time production.
Whilst this number is not dissimilar to various other popular networks in the industry, we understand that high inflation rates can lead to economic instability within the network. By gradually reducing token inflation, we aim to create a more stable economic environment for our users, stakeholders, and the overall AIOZ community.
The revised mechanics behind the AIOZ token highlight a proactive measure to ensure that our tokenomics remain adaptive to the evolving needs of the network and its participants, fostering a sustainable and balanced token economy.
AIOZ tokens serve various functions within the network, including staking for security, rewarding node managers, and facilitating transactions. A controlled inflation reduction optimizes the utility of the token, ensuring it remains a valuable and versatile asset within the AIOZ ecosystem.
Moreover, by reducing inflation, AIOZ aims to enhance security and ensure a resilient infrastructure that can withstand potential security challenges.
From December 25th 2023 onwards, inflation of the AIOZ Network token will be decreased by 1% each year on December 25th, for a total of 4 years. This means a total of 4% reduction and a resting inflation rate of 5% by 2026.
- 8% 25th December, 2023
- 7% 25th December, 2024
- 6% 25th December, 2025
- 5% 25th December, 2026
With a long term base target of 5%, we aim to considerably increase the incentivization for stakeholders within the AIOZ Network. The proceeds of this inflation will be distributed as before:
- 50% of Inflation Rewarded to Validators/Delegators
- 50% of Inflation Sent to Treasury
With 4 large infrastructure pillars in active development, Treasury tokens will be used in part to incentivize growth, adoption and expansion of our products:
- AIOZ W3S
- AIOZ W3AI
- AIOZ W3IPFS
- AIOZ W3Stream
Catalyzing growth of the AIOZ Network developer and partner ecosystems will mean further utilization of the AIOZ token. AIOZ tokens will function as means of payment within dApps built on the AIOZ Network, resulting in a flourishing and healthy network of dApps, developers and users plus a token with considerable utility.
We have worked hard in an effort to ensure a healthy future for the AIOZ Network token; implementing changes such as programmatic token burns based on network usage and regular token burns in several areas.
Token burning will occur in the following instances:
- 50% of ALL AIOZ Network Blockchain Transactions
- 5% of ALL Node Rewards
- 5% of ALL Infrastructure Revenues
- 5% of ALL AIOZ Native dApp Revenues
The AIOZ token serves an integral function within the AIOZ Network ecosystem.
AIOZ Network's success relies in part on a healthy and balanced token economy. Implementing regular token burns, in addition to reducing inflation, safeguards against potential issues associated with token oversupply. These measures contribute to sustaining a secure and sustainable ecosystem.