We received substantial feedback on the Nimiq Contribution Terms. We appreciate the questions we received and thought some background would help explain our approach. We strive for transparency and hope to clear up misunderstandings.

One of the key issues is the comparison to other contribution events that generate 100% of the total Token Supply and are systems that live on top of the Ethereum Blockchain. The Nimiq Network is not like other Blockchain startups that work on top of the Ethereum Blockchain. Nimiq is a third-generation Blockchain standing on it’s own — already operational as Beta Testnet.

The Nimiq contributions are similar to the Ether contributions preceding the launch of the Ethereum Blockchain. Comparable to Ether created in the Ether Launch Sale, the NIM — converted from NET from the contributions — will represent 100% of the initial circulating supply on day 1 of the Nimiq Mainnet Launch, amounting to 1.05 Million NIM. The Nimiq supply is modeled after Bitcoin. Within the first year Miners will gather rewards of 2.6 Million NIM and partial vesting for Creators, Early Contributors, Long-term Endowment and the Good Cause Non-Profit add another 462K NIM, for a total of 4.1 Million NIM. That means the NIM (converted from NET) from the contributions represent 25.5% after year one:

NIM circulating supply first two years from Mainnet launch

The total “Capitalization” of NIM would then be 235K ETH and not 5x that amount as some have speculated.

With this proposition and supply distribution we want to attract contributors from all levels and demonstrate our long-term commitment and clear intent to provide immediate benefits to such contributors and miners before anybody else.

We look forward to completing the Nimiq development and delivering the Bitcoin on steroids: fast, scalable and web-based, streamlined to be the frictionless payment protocol for everyone.

As always, thank you for your support.

Team Nimiq

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