The official Tokenomics and Distribution format for the 2.1 billion Core tokens that will ever exist on the Core Chain has been made available by the Satoshi CORE development team.
An Overview of Core’s Distribution and Tokenomics for the 3D Blockchain
Every component of a successful blockchain must be decentralized, especially the “Three D’s of Decentralization”: Design, Distribution, and Direction. 3.0D decentralization
The design of Core has been covered in earlier publications, such as Satoshi Plus Consensus. The explanation of Core’s decentralized distribution, its implications for Core’s future, and how Core is a 3D Blockchain is introduced in this post.
A 3D blockchain hadn’t recently gained widespread adoption before Core. According to The Merge is Here, new L1s have been vying for first place in “The Layer One Race” by pursuing expansion at any costs. Frequently, the outcomes can result in centralized distributions.
One of the most obvious adverse effects of centralized distributions is changes in token prices. In the past, early token price booms have frequently been followed by centralized distributions. Tokens may be prepared for post-launch jolts due to strong investors’ possible attention to swiftly ascending chains and a low circulation quantity as a result of investor lock-ups. However, as lock-up periods end and early investors liquidate, this race to the top may ultimately result in a sharp race to the bottom.
A blockchain’s efficacy in terms of design frequently hinges on the composition of the token-base. Network security and censorship resistance for blockchains using proof of stake and comparable consensus processes, as many new chains do, depend on the honesty of token holders. As a result, token-base concentration raises the possibility of chain manipulation, which was initially raised in Core Blockchain Origins.
This implies that pricing, rather than development, may more accurately characterize a blockchain’s success. Although price and development may be related, investors ultimately choose to exchange tokens for money. The future that true builders imagine eliminates the need for such transfer entirely.
Instead of being intrinsically negative, the right and healthy introduction of them involves thinking about both the sequence of events and the relative weight of distribution. The network’s users were given priority in Core’s architecture on both of these vectors. There have been no open nor closed sales of CORE tokens to investors as of mainnet.
Without any outside assistance, the idealistic group of founding members constructed Core for three years while comprehending the critical philosophical gap between builders and investors. As a result, Core’s distribution strategy can concentrate on putting tokens into the hands of the network’s genuine creators and consumers. The launch of Core intends to be one of the most decentralized in blockchain history by doing this.
The following is an illustration of Satoshi Core’s token distribution as it stands today:
Distribution Breakdown of the 2.1 billion total CORE tokens:
Node Mining (839,900,000 CORE tokens; 39.995% of the total supply):
- To get Core off the ground, both miners and stakers who are securing the network must be compensated for their services. Node rewards will be distributed over an extended period of time (~81 years) to ensure long-term incentive alignment. Nodes can also receive rewards in the form of transaction fees.
Users (525,600,000 CORE tokens; 25.029%):
- From the start, Satoshi CORE users should know that this chain is built for them. Airdropped CORE tokens will be allocated to a decentralized base of millions of users.
Contributors (Existing and Future) (315,000,000 CORE tokens; 15%):
- Compensation will incentivize past, present, and future Core contributors.
Reserves (210,000,000 CORE tokens; 10%):
- This reserve may be used over time in order to capitalize the foundation without centralizing the token supply.
Treasury (199,500,000 CORE tokens; 9.5%):
- The Treasury will give the DAO the funds necessary to build out the ecosystem.
Relayer Rewards (10,000,000 CORE tokens; 0.476%):
- Like nodes, relayers must be compensated for the services they provide to the chain’s security. Relayers also receive rewards in the form of transaction fees.
A decentralized distribution is essential for CORE tokens because of the role it plays in the Core network. CORE is the utility and governance token of the Core Network with abilities including, but not limited to:
- Paying for transaction/gas fees
- Staking on the Core Network
- Participating in Core network governance
Given these vital functions, CORE token holders bear great responsibility for upholding and directing the Core network. Nevertheless, Core’s tokenomics also contain certain indelible principles to uphold decentralization, self-sovereignty, and soundness.
Following Bitcoin’s model of absolute scarcity, only 2.1 billion CORE tokens will ever exist. The hard supply cap is aimed at making Core maximally inflation resistant.
Emissions Curve and Schedule
The block rewards of CORE will be paid out over an 81 year period. These rewards will be paid out to network participants to promote the long-term success of the chain. Each year, block rewards decrease by 3.6% over the last.
Direction is often more important than speed, which is often lost in the chaos of crypto. The crypto industry’s volatility often appears to reward the fastest among us, but that volatility is a two-way street. Over a long enough time horizon, crypto punishes fragility and rewards antifragility.
Projects with a sturdy foundation and direction are more likely to emerge from the worst wreckage. By deliberately targeting builders, users, and believers with the token launch, Core’s foundation is in perfect alignment with the vision of long-term decentralized governance.