What is the issuance and circulation of Alephium (ALPH) coins?

Alephium coin (ALPH) issuance is capped at 1 billion, with 50% allocated for the initial coin offering and the rest released gradually through block and staking rewards.

Dec 09, 2024 at 08:36 am

Issuance and Circulation of Alephium (ALPH) Coins

Alephium Coin Issuance

1. Initial Issuance: Alephium coins (ALPH) were first issued during the project's initial coin offering (ICO) in 2021. The ICO offered a total of 500 million ALPH for sale, representing 50% of the total supply.
2. Block Rewards: New ALPH coins are also created through block rewards, which are distributed to miners who successfully add new blocks to the blockchain. The block reward is currently set at 9 ALPH per block and is scheduled to decrease over time through a halving mechanism.
3. Staking Rewards: Alephium holders can also earn ALPH rewards by staking their coins on the network. Staking involves locking up ALPH coins to secure the blockchain and participate in the consensus mechanism. Stakers earn a portion of the block rewards as compensation for their contribution.

Alephium Coin Circulation

1. Total Supply: The total supply of Alephium coins is capped at 1 billion ALPH. Of this total, 500 million were issued during the ICO, and the remaining 500 million will be released gradually through block rewards and staking rewards.
2. Circulating Supply: The circulating supply of ALPH refers to the number of coins that are currently in circulation and available for trading. The circulating supply is calculated as the total supply minus any coins that have been burned or lost.
3. Market Capitalization: The market capitalization of Alephium is calculated by multiplying the circulating supply by the current market price of ALPH. It represents the total value of all ALPH coins currently in circulation.

ALPH Coin Distribution

The Alephium Foundation, which oversees the project's development, retains a portion of the total ALPH supply for various purposes, including funding research and development, community outreach, and ecosystem growth. The distribution of ALPH coins is as follows:

• ICO: 500 million ALPH (50%)
• Alephium Foundation: 200 million ALPH (20%)
• Development Fund: 100 million ALPH (10%)
• Community Fund: 100 million ALPH (10%)
• Ecosystem Fund: 100 million ALPH (10%)

ALPH Coin Burn Mechanism

Alephium employs a coin burn mechanism to reduce the total supply of ALPH over time. Transactions on the Alephium network incur a transaction fee, a portion of which is burned. This burning process permanently removes ALPH coins from circulation, reducing the circulating supply and potentially increasing the value of remaining coins.

Impact of Issuance and Circulation on ALPH Price

The issuance and circulation of ALPH coins have a significant impact on its market price. An increase in the circulating supply through block rewards and staking rewards can lead to downward pressure on the price, while a decrease in the circulating supply through burning can have a positive effect. The rate of issuance, the size of the circulating supply, and the level of demand for ALPH can all affect its price fluctuations.