Hello everyone, Shyft Network has officially launched! We’ve laid the foundation for an entire network that will solve complex problems like institutional adoption and multi-jurisdictional regulation. As the blockchain ecosystem quickly scales before our eyes, the industry is now starting to feel the effects of present-day regulations. The need for a solution, like Shyft Network, has never been more urgent.
The work is not over as we prepare for the next steps, i.e., continuous protocol improvement, community and ecosystem development, and other incredible products on our pipeline. We decided to publish this post to clarify our token distribution and liquidity schedules now that the mainnet is live.
In the original Token Economics blog post, we explained that the Network Inflation rate was set at 6% of the Initial Token Universe, i.e., 2,520,000,000 tokens, distributed gradually over several years. The Network Inflation rate is composed of three main elements:
A. Shyft Runtime Inflation DAO’s — 2%: Perpetual Community Funding and Ongoing Ecosystem Wide Resource Maintenance.
B. Strong Federation — 2%: Inflation per block is generated to pay for the cost of security; all network transactions fees are eliminated through EIP1559.
C. Byfrost — 2%: Inflation routed to openly pay for the cost of public bridge nodes for asset-weighted Proof of Stake.
The launch of the mainnet slightly modified the distribution schedule by delaying the Strong Federation component for, roughly, 3.5 months. This component will also be optimized right after the next mainnet hard-fork as the network introduces improvements like EIP1559 (similar to what Ethereum is going through in the next few weeks).
Another component of token inflation that changed is the Byfrost Bridgestaking, which isn’t currently accumulating and will not count towards circulating supply until Byfrost launches later this year.
The Runtime Inflation DAO component IS accumulating, and we are working on building the DAO structure, governance components and deployment schedule for this to become available as soon as possible.
Please note also that we reduced the Advisor allocation by 1.28%, from 5.68% to 4.4%.
Note: The Economic Metagame represents 20% of the Initial Token Universe. It’s a deflationary incentive mechanism.
As users participate in the Wrap Rewards context, there will be a deflationary reduction in the total universe corresponding to the proportion of total assets (E.g. USDT erc20 token) within the Wrap Rewards contract. 20% of the total initial universe is available to be burned over the first 2 years (if lower, will move to further years).
The Initial Token Universe can be divided into four main categories to show their nature and destination.
DAO Related assets represent all buckets destined for community DAOs and other AMM structures to incentivize the growth and development of our community and our network. These funds are not immediately available to the Shyft Network core team or the Shyft Node Federation.
These allocations represent all SHFT tokens that have been sold, distributed, or granted to early token purchasers, strategic and technical partners, advisors, and early supporters of the project.
These buckets represent SHFT tokens that are currently or will be available to the Shyft Network for the ecosystem, business, and partnership development, subject to distribution locks and schedules.
As discussed in our original Token Economics blog post, the Shyft Network has an inflationary component meant to incentivize the creation and continuity of the Node Federation, allowing for the creation of future DAOs for community expansion.
For the purposes of calculating circulating supply, the starting date of distribution schedules is March 26, 2021.
You can find our Shyft Network block explorer here: Shyft POA Explorer
For updated information on Shyft Network’s token supply, please check out Shyft Network, SHFT live marketcap, chart, and info | CoinMarketCap.
