Tokenomics
Learn about the hybrid TRAC/OTP token model
- Max supply: 500M Non-inflationary, all distributed during ICO
- Circulating supply: 368M The remainder 132M tokens are tagged for the dev pool (see illustration below)
- Markets with liquidity: Coinbase, Kucoin, Bancor, Uniswap
- Token Sale Complete: January 17, 2018
- Token Standard: ERC-20
- ICO price: $0.10 (0.00007968 ETH)
- Contract Address: 0xaa7a9ca87d3694b5755f213b5d04094b8d0f0a6f (18 decimal)
The following table shows the current TRAC token distribution. As described in the 2020 Q1 Report, all of the TRAC available in the “soft lock” column will be used in the protocol development fund for future improvements (132.5 million total).
OriginTrail TRAC layer-2 token is the life and blood of the entire ecosystem. It is required to perform all operations on the DKG. It is an utility token that drives the entire network:
- Publishing and updating assets – asset creators (such as enterprises, organizations, companies, even individuals) must use TRAC to compensate OriginTrail node runners for holding their data for a period of time. This will be the main driving for TRAC’s tokenomics.
- Collateral on OriginTrail nodes – node runners must lock up TRAC as a collateral for holding asset publishes. The more TRAC locked up in the node, the more likely the node is chosen as the asset holder.
- Delegating to nodes – token holders who do not wish to maintain a node have the possibility to delegate their TRAC to node runners, and in return obtain a portion of the rewards.
- Keyword staking – Assets owners (enterprises, organizations, companies or individuals) can lock up TRAC to have their assets prioritized in a search result for a particular keyword, similar to Google AdSense. This is akin to a decentralized form of marketing spending in Web3 fashion.
- Data marketplace – TRAC as a fungible token under ERC-20 standards is transferable and usable in any way ERC-20 assets are. TRAC can therefore be used in smart contracts that allow TRAC to be used as a compensation token for selling or buying assets. Data creators can earn from ownership of valuable data assets.
The OriginTrail Parachain super-charges these data marketplaces with the addition of knowledge tokens, knowledge wallets, the knowledge marketplace, and knowledge tenders. They allow individuals to buy and sell data in a trusted, private way; the developers say this will increase TRAC’s utility by orders of magnitude. Because this is tied into to the Polkadot ecosystem, all Polkadot/Kusama projects will be able to utilize this feature. Please see the 2021 Roadmap for a very in-depth look at this use case.
- Max supply: 1B
- Circulating supply: TBD
- The initial distribution (first 2 years) was planned to be 500M tokens. However, several factors explained below led to a much lower number
- 25% of the genesis distribution comes unlocked
- 75% of the distribution is unlocked progressively over the course of the 2 years
- 5% inflation rate per year up to 1B max supply
The OTP layer-1 token is the OriginTrail Parachain. It is designed as a gas and reward token. Rather than relying on ETH, MATIC, XDAI as gas tokens for network transactions, OTP will be used to pay for gas on the OriginTrail Parachain. OTP is also a reward token that incentivizes growth of the DKG on the Origintrail Parachain, making sure the OriginTrail Parachain is the most attractive blockchain layer for the DKG. In other words, our parachain (layer-1) requires a token, OTP, to function as gas for transactions and as a reward for collators for processing blocks back to Polkadot (layer-0).
Below is a detailed description of the OTP utility token:
- Gas fees - for transactions, smart contracts and graph contracts (released at a later date).
- Incentivizing collators - collators who perform network functions are required to lock up OTP to signal the amount of stake they are willing to keep locked for a period of time in order to receive OTP rewards. The higher the locked amount, the greater the chance a collator candidate gets placed in the group of rewarded collators.
- Delegate to collators - OTP holders who are not collators can delegate their OTP and earn a part of the reward.
- Governance and voting - OTP holders can lock their OTP to vote on update proposals for OriginTrail Parachain network and community treasury proposals.
- Data marketplace - OTP as a fungible token, just like TRAC, can be used in a data marketplace environment using smart contracts.
Last modified 1mo ago