What is the token economics model of Cartesi (CTSI) currency?

The CTSI token, at the core of the Cartesi ecosystem, facilitates transactions, staking, and governance, providing a multifaceted role within the network's operations.

Dec 09, 2024 at 04:30 am

Token Economics of Cartesi (CTSI) Currency

Cartesi (CTSI) is a blockchain platform designed to provide developers with a cost-effective and scalable environment for running smart contracts and decentralized applications (dApps). At the core of Cartesi is its CTSI token, which serves as the currency used for facilitating transactions, staking, and governance within the Cartesi ecosystem. Understanding the token economics of CTSI is crucial for evaluating its potential value and role in the Cartesi network.

Token Distribution

Initially, 1 billion CTSI tokens were created during the initial token sale in 2018. The distribution of these tokens is as follows:

• Ecosystem and Network: 32.5% allocated for supporting Cartesi's ecosystem growth, network development, and community engagement.
• Team and Advisors: 20.5% reserved for the Cartesi team, including founders, developers, and advisors, to support ongoing platform development and maintenance.
• Public Token Sale: 25.5% distributed to the public through the initial token offering.
• Cartesi Foundation: 12% allocated to a non-profit foundation dedicated to supporting Cartesi's research, education, and outreach initiatives.
• Partnerships and BD: 8% set aside for strategic partnerships, ecosystem collaborations, and business development initiatives.
• Reserve: 1.5% held in reserve for future needs, such as network upgrades, reward programs, or community initiatives.

Utility of CTSI Token

The CTSI token is designed to fulfill several roles within the Cartesi ecosystem:

• Transaction Fees: CTSI is used to pay for transaction fees associated with using Cartesi's services, including dApp deployment, smart contract execution, and storage. Fees are proportional to the computational resources consumed, ensuring efficient resource allocation.
• Staking: CTSI holders can stake their tokens to participate in the network's consensus mechanism and support its security. Stakers earn rewards for contributing to network stability and earn additional CTSI tokens over time.
• Governance: CTSI token holders have voting rights in the Cartesi decentralized autonomous organization (DAO), allowing them to participate in decision-making processes regarding platform upgrades, protocol changes, and ecosystem governance.

Token Supply and Distribution Over Time

Over time, the supply and distribution of CTSI tokens will change due to various factors:

• Issuance through Staking: New CTSI tokens are issued as rewards for staking, gradually increasing the overall supply.
• Burn Mechanism: Cartesi employs a burn mechanism that reduces the total supply by sending a portion of transaction fees to a burn address, reducing the number of tokens in circulation.
• Community Fund: A portion of CTSI tokens is allocated to a community fund, which can be used to support community projects, grant programs, and ecosystem initiatives.

Tokenomics and Cryptocurrency Rankings

While not directly related to the token economics of CTSI, it's worth noting that in the realm of cryptocurrency rankings, CTSI has occupied notable positions:

CoinMarketCap: CTSI is ranked among the top 500 cryptocurrencies by market capitalization, indicating its significant traction within the crypto space.

Coingecko: CTSI is recognized as one of the top 400 cryptocurrencies by market capitalization, showcasing its position among promising blockchain projects.

Nomics: CTSI is consistently ranked among the top 450 cryptocurrencies based on its market capitalization, demonstrating its strong standing in the industry.