How will NeuroChain’s monetary distribution and inflation rate work?

NeuroChain Tokenomics

In this article, we explore Neurochain’s monetary distribution and inflation rate and explain why people will use the network once it is in place.

NeuroChain’s distribution model

The NeuroChain token distribution model works as follows :

2% is allocated to a Seed Fund

3% is allocated to the Foundation

10% is allocated to Founding Team & Advisors

15% is allocated to Investors

70%is allocated to the protocol, and progressively to the Elected Bots

As we can see, 30% goes to the first network participants (Seed Fund, Foundation, Founding Team & Advisors, Investors) and 70% goes to what are called the elected bots.

At the end of the ICO, the first participants will have to wait 9 months until the V1 release. But there is an incentive for them to hold their tokens, which we will present in this article.

Let’s compare

Let’s compare!

How does NeuroChain’s block reward compare to the block reward of the Bitcoin Blockchain?

Bitcoin’s protocol limits the total supply of coins to 21 million.

The coinbase transaction as well as the transaction fees are the components of the block reward.

The coinbase transaction is a way to constantly add bitcoins, that are in circulation inside the network, at a defined deflated rate (12,5BTC/block) until all the bitcoins (21 millions) are issued.

The transaction fees, that will increase proportionally to the network’s adoption.

The miner that wins the block through PoW (Proof of Work) consensus earns the coinbase transaction plus the fees.

About NeuroChain’s 70% allocation to elected bots

NeuroChain’s protocol limits the total supply of coins to 4,374 millions.

The coinbase transaction and the transaction fees compose the block reward.

Neurochain’s coinbase transaction is similar to Bitcoin’s. In fact, once the network is launched, participants will be able to connect their bots, which will work to find the next blocks of Clausius transactions. The bot that wins the block will be rewarded at a defined deflated rate that will be linear and that will start from 70% of the total supply to 0%, in approximately one decade.

The transaction fees, that will increase proportionally to the network’s adoption.

As a conclusion, Neurochain’s inflation process is quite similar to Bitcoin’s in terms of monetary distribution policy. Indeed, the protocol is designed to generate new Clausius on a regular and linear timeline to incentivize people to contribute to the network by connecting new bots, and to launch Dapps (Decentralized Applications) using NeuroChain.

Invest Smart. Invest NeuroChain.