What is the issuance and circulation of Secret(SCRT) coins?

SCRT coins are issued under a gradual inflation mechanism through block rewards, and their circulation is maintained through staking rewards and a burning mechanism that reduces the total coin supply over time.

Dec 10, 2024 at 10:46 am

What is the Issuance and Circulation of Secret (SCRT) Coins?

Secret (SCRT) is a privacy-focused blockchain platform that enables the creation of private, decentralized applications. The issuance and circulation of SCRT coins are fundamental to the functioning of the Secret Network. This article provides a comprehensive overview of the issuance and circulation dynamics of SCRT.

1. Initial Issuance

• SCRT coins were first issued in February 2020 through a public token sale.
• A total of 140 million SCRT coins were created at the genesis block.
• The token sale raised approximately $30 million, which was used to fund the development and growth of the Secret Network.

2. Block Rewards

• Block rewards are issued to validators who participate in the consensus mechanism of the Secret Network.
• Validators verify and add new blocks to the blockchain, ensuring its security and integrity.
• Block rewards currently consist of 4 SCRT coins per block and constitute a gradual inflation mechanism.

3. Staking Rewards

• Token holders can stake their SCRT coins to earn passive income in the form of staking rewards.
• Staking involves delegating your coins to a validator, who uses them to validate transactions and earn rewards.
• Staking rewards are distributed to token holders proportional to their stake in the network.

4. Burning Mechanism

• Secret Network employs a burning mechanism that reduces the total supply of SCRT coins over time.
• A portion of the transaction fees paid on the network is burned, permanently removing SCRT coins from circulation.
• This mechanism helps to combat inflation and maintain the scarcity of SCRT coins.

5. Circulation

• As of May 2023, approximately 110 million SCRT coins are in circulation.
• The remaining 30 million coins are held in reserve by the Secret Foundation and other parties.
• The distribution of SCRT coins is diversified, with validators, delegators, and token holders holding significant portions.

6. Market Liquidity

• SCRT coins are traded on various cryptocurrency exchanges, including Binance, Huobi Global, and Gate.io.
• The market liquidity for SCRT has increased significantly since its launch, facilitating easy buying, selling, and trading of coins.
• The availability of SCRT on major exchanges enhances its accessibility and utility.

7. Governance

• SCRT coin holders have governance rights within the Secret Network ecosystem.
• They can participate in voting on proposals that affect the development and direction of the network.
• The governance process empowers token holders to shape the future of the Secret Network.

8. Utility in Secret Network Applications

• SCRT coins are used to power various applications and services built on the Secret Network.
• They are used for transaction fees, staking, and governance within Secret Network applications.
• The utility of SCRT coins increases as the adoption and development of the Secret Network ecosystem grows.