What is the issuance and circulation of IOST coins?

With a fixed total supply of 21 billion IOST coins, approximately 14.3 billion are currently in circulation, representing 68% of the total supply and supporting various use cases within the IOST ecosystem.

Nov 24, 2024 at 08:44 pm

Understanding the Issuance and Circulation of IOST Coins

IOST (Internet of Services Token) emerged in the blockchain landscape as a high-performance, user-centric blockchain network. Its native currency, the IOST coin, plays a crucial role in the functioning and governance of the IOST ecosystem. Let's delve into the issuance and circulation of IOST coins to gain a comprehensive understanding:

Issuance and Initial Coin Offering (ICO)

1. Total Supply: IOST has a fixed total supply of 21 billion coins, pre-determined during the network's inception.
2. Initial Coin Offering (ICO): In 2017, IOST conducted an ICO, offering a total of 50% of the total supply (10.5 billion coins) for public sale.
3. Token Distribution: During the ICO, 50% of the coins were allocated to initial investors, 20% to the IOST team and ecosystem development, 15% as a reserve for future ecosystem growth, 10% to early contributors, and 5% to strategic partners.

Circulation and Tokenomics

1. Current Circulating Supply: As of [current date], approximately 14.3 billion IOST coins are in circulation, representing roughly 68% of the total supply.

2. Token Use Cases: IOST coins serve as the primary currency within the IOST ecosystem, with various use cases including:

   • Transaction fees for executing smart contracts and transferring assets
   • Staking to participate in consensus and earn rewards
   • Governance, enabling holders to vote on network proposals and upgrades

Issuance Schedule and Inflation

1. Planned Issuance: The remaining 32% of the total supply (6.7 billion coins) is scheduled to be issued over the next 10 years through a combination of staking rewards and ecosystem incentives.
2. Inflation Control: IOST employs a unique tokenomics model that balances issuance and inflation control. Initially, a higher inflation rate (5%) is applied to incentivize staking participation and ecosystem growth. However, this rate gradually decreases over time, reaching a stable inflation rate of 2% after 10 years.

Staking and Rewards

1. Staking Mechanism: IOST adopts a Proof-of-Believability (PoB) consensus algorithm, where users stake IOST coins to participate in block production and validation.
2. Consensus Rewards: Stakers are rewarded with IOST coins for contributing to the network's security and stability.
3. Staking Incentives: To encourage staking and ensure a robust validator network, IOST offers competitive staking rewards, typically ranging from 5% to 8% APY (Annual Percentage Yield).

Governance and Community Involvement

1. Community Governance: IOST's community plays a vital role in decision-making and shaping the network's future. Token holders have the power to propose and vote on governance proposals related to network upgrades, token allocation, and strategic initiatives.
2. IOST DAO: The IOST Decentralized Autonomous Organization (DAO) facilitates community governance and ensures transparency. Coin holders can participate in the DAO by staking their coins and voting on proposals.

By understanding the issuance and circulation of IOST coins, you gain insights into the economic mechanisms that drive the IOST ecosystem. The carefully designed tokenomics model aims to balance incentives for participation, inflation control, and community involvement, fostering the long-term sustainability and growth of the IOST blockchain.