Coin Hours over Time

However, Skycoin is not the only asset on Skycoin’s blockchain, it also contains Skycoin’s parallel currency Coin Hours. Coin Hours have both an inflationary and a deflationary side, since every Skycoin generates one Coin Hour per hour (inflationary) but also a certain amount of Coin Hours is burned in each Skycoin transaction (deflationary). In general, the circulating supply of Coin Hours has been growing over time but has also had massive decreases caused by individual transfers that burned a ton of Coin Hours.At the end of 2015, the circulating supply of Coin Hours was at 6.3 billion while it was at 23.6 billion at the end of 2016. The circulating supply went as high as 29.5 billion on April 6, 2017 until a huge number of 13.5 billion Coin Hours were burned in one transaction : After that, the circulating supply of Coin Hours increased constantly with occasional burns once a “Coin Hour whale” decided to move his Skycoin and therefore burn up to 50% of his Coin Hours. At the end of 2017, there were 27.5 billion Coin Hours in circulation, which increased to 69.7 billion Coin Hours at the end of 2018. At the end of 2019, the circulating supply is at 185 billion Coin Hours.Looking at these numbers, it may be surprising that a total of 519 billion Coin Hours have already been burned, which is around 2.8x as many Coin Hours as the current circulating supply. The circulating supply of Skycoin (at 17 million SKY at the end of 2019) has only generated 283 billion Coin Hours thus far, however, every time a distribution address with one million SKY is opened, the Coin Hours those one million SKY generated over the past five years can get introduced to the circulating supply. Around 408 billion Coin Hours have been released this way from distribution addresses, though most of them have been burned immediately.In parallel to the transaction analysis, exchanges are not just responsible for the majority of transactions, they have also burned many Coin Hours over the past three years. A total of 82 billion Coin Hours have been burned in exchange-related transfers, of which 63 billion were burned by Binance, 15 billion by Cryptopia and 4 billion by other exchanges. Check out the following graphic for a visualization of all mentioned Coin Hour statistics: