DePin Project Reveals Tokenomics of io.net: What is the Initial Circulation Volume?

DePin Project Reveals Tokenomics of io.net: What is the Initial Circulation Volume?

DePin Project Reveals Tokenomics of io.net: What is the Initial Circulation Volume?

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 previously announced the completion of a $30 million financing, has announced the token IO’s economic model yesterday. The token will be used as a payment medium for service fees in the io.net ecosystem and also serve as collateral for network security. Nodes must pledge a certain amount of IO 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 allocated at launch and the remaining 300 million distributed hourly as rewards to suppliers and their pledgers. However, the rewards will continuously decrease over the next 20 years based on a deflationary model, starting at 8% in the first year and decreasing by 1.02% per month (approximately 12% per year).

In addition, there is an automated IO token burn mechanism in the io.net ecosystem. The income generated during the operation of the io.net network will be used to repurchase and burn IO tokens.

The initial supply of IO in io.net at its inception is 500 million, belonging to five categories: seed investors, A-round investors, core contributors, research and ecosystem, and community. However, although many media outlets emphasize the 500 million figure, here the 500 million refers to the initial “supply” rather than the initial “circulation”.

According to the official statement, both investors and team shares are subject to 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 specific amount of tokens that will be in circulation in the market is unknown and worth monitoring. However, it can be confirmed that the initial circulating token supply will be significantly lower than 500 million.