What is the issuance amount of TRAC coins?

With a capped supply of 500 million TRAC coins, the distribution involved an ICO, seed funding, team allocation, community incentives, and a reserve for ecosystem development.

Nov 16, 2024 at 07:38 pm

Understanding the Issuance of TRAC Coins: A Comprehensive Guide

Introduction

TRAC (OriginTrail Token) is a blockchain-based platform designed to revolutionize the traceability and transparency of global supply chains. Founded in 2018, OriginTrail aims to empower businesses and consumers with tamper-proof data and insights into the provenance of products and services. Central to this ecosystem is the TRAC coin, which serves multiple functions within the platform. This article delves into the essential aspects of TRAC coin issuance, shedding light on its total supply, distribution, and role in the OriginTrail ecosystem.

1. Total Supply of TRAC Coins

The total supply of TRAC coins is capped at 500 million tokens. This predetermined limit ensures the scarcity and value of the coin over time. The fixed supply prevents inflation and excessive issuance, which could dilute the value of existing TRAC holders.

2. Distribution of TRAC Coins

The distribution of TRAC coins occurred through a series of funding rounds, strategic partnerships, and community events. Here's a breakdown of the distribution:

• ICO (Initial Coin Offering): 45% of the total supply (225 million TRAC) was sold through a public ICO in 2018.
• Seed Funding: 15% of the total supply (75 million TRAC) was allocated to seed investors who supported OriginTrail in its early stages.
• Team and Advisors: 10% of the total supply (50 million TRAC) was reserved for the OriginTrail team and advisors who played a crucial role in the platform's development.
• Community Airdrops and Incentives: 10% of the total supply (50 million TRAC) was distributed through airdrops, bounties, and community initiatives to promote adoption and engagement.
• Reserve: 20% of the total supply (100 million TRAC) was set aside as a reserve for future ecosystem development, partnerships, and strategic use.

3. Role of TRAC Coins in the OriginTrail Ecosystem

TRAC coins play a vital role in the functionality and governance of the OriginTrail ecosystem. Their primary uses include:

• Transaction Fees: TRAC coins serve as the payment currency for data storage, retrieval, and other transactions within the OriginTrail network.
• Staking: TRAC holders can stake their coins to participate in consensus and secure the OriginTrail blockchain. Staking rewards incentivize network participation and contribute to the network's stability and reliability.
• Governance: TRAC holders have voting rights, allowing them to participate in decision-making processes and influence the direction of the OriginTrail ecosystem.

Additional Considerations

• Burning Mechanism: OriginTrail implemented a coin burning mechanism to reduce the circulating supply of TRAC over time. A portion of the transaction fees collected on the network is periodically burned, reducing the total number of coins in circulation and potentially increasing the value of the remaining coins.
• Secondary Market Trading: TRAC coins can be traded on various cryptocurrency exchanges, providing liquidity and accessibility to investors and users.
• Long-Term Value Proposition: The value of TRAC coins is tied to the growth and adoption of the OriginTrail ecosystem. As more businesses and consumers utilize the platform for supply chain transparency and traceability, the demand for TRAC is expected to increase, potentially driving its value.