What is the issuance and circulation of Civic (CVC) coins?

The Civic platform's native utility token, CVC, plays a critical role in incentivizing network participation, powering platform services, and driving ecosystem growth within the blockchain-based digital identity platform.

Nov 25, 2024 at 04:50 am

The Issuance and Circulation of Civic (CVC) Coins

Civic (CVC) is a blockchain-based digital identity platform that aims to simplify and secure the process of verifying and managing digital identities. The platform uses CVC, a native utility token, to incentivize participation in the network and to power its various services.

Genesis and Distribution

• The total supply of CVC is capped at 1 billion tokens.
• Of the total supply, 60% was distributed during a token sale in 2017.
• The remaining 40% is held by the Civic Foundation, a non-profit organization that oversees the development and adoption of the Civic platform.

Token Allocation

• Platform Usage (50%): Used as payment for identity verification services on the Civic platform.
• Network Incentives (25%): Distributed to participants who contribute to the network, such as validators and node operators.
• Ecosystem Development (15%): Used to fund the growth and expansion of the Civic ecosystem, such as through grants and partnerships.
• Civic Foundation (10%): Held by the Civic Foundation to support the ongoing development and governance of the platform.

Token Circulation

• CVC is an ERC-20 token, meaning it is built on the Ethereum blockchain.
• The circulating supply of CVC fluctuates based on market demand and usage.
• As of March 2023, approximately 550 million CVC tokens are in circulation.

Token Utility

CVC plays a crucial role within the Civic ecosystem:

• Identity Verification: Users pay CVC to access identity verification services on the Civic platform.
• Network Participation: Validators and node operators earn CVC rewards for contributing to the network's infrastructure.
• Ecosystem Growth: CVC is used to fund projects that expand and improve the Civic ecosystem.
• Governance: CVC holders may participate in future governance mechanisms, such as decentralized autonomous organizations (DAOs).

Token Economics

The issuance and circulation of CVC are designed to ensure the stability and sustainability of the Civic platform:

• Capped Supply: The fixed total supply of CVC prevents inflation and preserves the value of the token.
• Network Incentives: Rewarding network participants with CVC fosters a decentralized and robust infrastructure.
• Platform Usage: The requirement to use CVC for identity verification services drives demand for the token.
• Ecosystem Funding: Allocating CVC to ecosystem development sustains and expands the platform's utility and adoption.