CRYTOKEN Distribution and Supply

This post intends to help the CRYtoken community understand how the CRYtoken token will be distributed at the launch of CRYtoken’s mainnet and throughout its lifecycle.

Hightlights

Read the description and distribution of CRYTOKEN to learn more about our ecosystem and the role of the token in it.

CRYTOKEN is the native currency of Coindeks and is necessary for participation in the ecosystem, making payments, staking, and paying commissions for the operation of services.

  • All elements of Coindeks are connected with CRYTOKEN, which is a key element of the ecosystem.
  • CRYTOKEN is an inflationary currency with no supply restriction. The number of released products will grow as the project ecosystem grows and new products are added. Coindeks members can take part in staking to earn more CRYTOKEN.
  • At launch, a total of up to 1 billion CRYTOKEN will be distributed, which are locked and will be fully unlocked within 8 years.
  • The gradual unlocking of CRYTOKEN is necessary to ensure the liquidity of CRYTOKEN at the first stages of the ecosystem development and a favorable price of the token from the start. As the ecosystem grows and the project develops, new tokens will be unlocked.
  • During the first 15 months of operation, the unlocked accounts will receive up to double the locking rewards that the locked accounts receive. This encourages new network members and unlocked token holders to remain loyal to the ecosystem and continue to hold their tokens.

CRYtoken 8-years Circulating Supply

CRYtoken Token Circulating Shedule

Definitions

Genesis Block:

The first block of the Coindeks blockchain. Includes all issued CRYTOKENs that are part of the Initial Offer.

CRYTOKEN:

The native currency of the Coindeks blockchain. CRYTOKEN is necessary for staking, creating blocks and paying commissions on the Coindeks blockchain.

Coindeks:

Coindeks is the managing company of CRYTOKEN. It owns and manages all of its tangible and intangible assets of Coindeks ecosystem.

Staking:

Coindeks is a blockchain based on a Proof of Stake. The right to become a block producer in the network is earned by placing CRYTOKENs.

Accounts with temporary blocking, blocking and unblocking:

The vast majority of tokens in the initial offer are subject to locks applied by the protocol. Locked tokens cannot be transferred from their accounts, but can be staked. Accounts that provide token locking are called accounts with temporary locking. As the tokens are unlocked, they can be transferred to another account or stored in the original account. If the account owner tries to transfer more tokens than are unlocked, the transaction will fail.

Token supply and distribution

The initial offer of CRYTOKEN is up to 1 billion tokens. This number includes all categories of token recipients, with the exception of block rewards, which are generated for each block mined.

Inflation

CRYTOKEN is an inflationary currency with no supply restriction. This decision was made in order to encourage a high level of participation in staking in the first years of the protocol, which will increase the level of decentralization.

Current inflation is generated by block rewards, which are paid to block producers for each successful transaction in the block.

When CRYTOKEN is launched on the main network, the reward for blocking will be fixed on the account in accordance with the target inflation rate.

CRYtoken Token Circulating Shedule

CRYtoken 8-years Circulating Supply

CRYtoken Token Circulating Shedule

CRYtoken is a Proof-of-Stake based blockchain. As such, the right to become a block producer on the network is earned by staking CRYtoken tokens. Holders of CRYtoken tokens can also choose to delegate their tokens to another block producer, for them to stake. As opposed to some other Proof-of-Stake based blockchains, staking in CRYtoken doesn’t have slashing or bonding periods. More on CRYtoken’s staking dynamics can be found here. Those interested can also read more about tokenomics simulations for various attack scenarios here.

Vast majority of tokens in the Initial Supply are subject to protocol enforced lock-ups. Tokens held by the CRYtoken Foundation and O(1) Labs Endowments are subject to self-enforced lockups, and both entities are committed to adhere to the unlock schedules in their respective sections below. Locked up tokens cannot be transferred out of their accounts, but can be staked or delegated. Accounts that enforce lock-up to tokens are called Time-locked accounts. By default, unlocking of lock-ups happens on a per-slot basis, but can be configured to occur periodically or via a cliff mechanism. As tokens unlock, they can be transferred to another account, or can be kept in the original account. If the owner of an account tries to transfer more tokens than unlocked, the transaction will fail. More about the unlock logic configurations can be found here.