This article was first published on IoTeX - Medium
Burn-Drop Tokenomics v2 — XRC20 Airdrips & Boosted IOTX Drops
To bootstrap our vision for the Internet of Trusted Things and incentivize network growth, IoTeX launched Burn-Drop v1 in October 2020 where IOTX is burned and dropped for every new device (e.g., Ucam) registered to the IoTeX Network. To date, ~3,000 IoTeX devices are active across 55+ countries, which has fueled 180M+ IOTX (~$9M USD) Burned and 20M+ IOTX (~$1M USD) Dropped to token holders. With new devices like Pebble Tracker launching soon, the number of IoTeX devices will grow exponentially in the coming years.
Burn-Drop is an elegant tokenomics design that links network growth to stakeholder value — it not only makes the total supply of IOTX deflationary over time via “Burns”, but also incentivizes stakeholders to onboard new IoTeX devices via “Drops”. Since the launch of Burn-Drop v1, we have iterated on our tokenomics design and are proud to introduce Burn-Drop v2, a major tokenomics upgrade that:
- Delivers “Airdrips” of mimo LP tokens (i.e., IOTX-XRC20 token pairs) to Burn-Drop eligible stakers on a continuous basis, enabling new projects to bootstrap their communities and engage with IoTeX “true believers”
- Provides boosted IOTX rewards (“Drops”) to Burn-Drop eligible stakers in line with network growth via adjustments to the Burn vs. Drop ratio
- Sets the foundation for decentralized governance to give Burn-Drop eligible users voting power for future changes to Burn-Drop tokenomics
In the rest of this blog, we outline the key features of Burn-Drop v2 that will be activated starting Phase 3 (i.e., after crossing 3,000 devices).
Airdrips of IoTeX Ecosystem Project Tokens
The IoTeX Network is expanding rapidly with a multitude of amazing ecosystem projects launching XRC20 tokens on the IoTeX Network. The addition of “Airdrips” to our Burn-Drop tokenomics will create a win-win situation for ecosystem projects and long-term stakers — projects ...
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IoTeX - Medium