Some friends buy tokens without paying much attention to token economics. However, token economics greatly influences the fluctuations in token prices.
Let me give you an example:
1. If a token has a mechanism for issuance and centralized unlocking, then each time there is an issuance or unlocking, the price of the token will generally decrease proportionally because the total value of the project itself hasn't changed.
2. If a token has a buyback and burn mechanism, then each time there is a burn, the price of the token will generally increase proportionally because the total value of the project itself hasn't changed.
In this article, we'll talk about $VANRY token economics.
VANRY is the native Gas token of Vanar Chain, with three main features: fixed total supply + 20 years of linear issuance + a mixed model of transaction fee destruction.
1. Overview of VANRY Token Economics
1. Total Supply Limit: 2.4 billion tokens.
2. Token Unlocking Situation: The genesis block minted 1.2 billion tokens, exchanged at a 1:1 ratio with the original TVK, ensuring a smooth transition for the community. The remaining 1.2 billion tokens will be used as block rewards, released linearly over 20 years.
3. Distribution Ratio (Newly Added 1.2 Billion Tokens): Validator rewards 83%, Development rewards 13%, Community incentives 4%; no team reserves.
2. Token Deflation Situation
1. Token Functions: Gas fees + Staking and rewards for validator nodes + On-chain governance voting.
2. Gas Fee Automatic Destruction: A portion of the on-chain gas fees will be automatically destroyed, the specific ratio has not been disclosed by the officials, but it is estimated to be low.
3. Ecological Consumption: dApps, NFTs, DeFi, and other scenarios will continuously consume VANRY.
3. Others
Advantages: The team does not retain any token proportion, which is quite strange; fixed total supply + long-term linear release, supply is predictable, and everyone has a clear understanding.
Disadvantages: There is dilution pressure during the early stage of issuance; the deflation effect relies on ecological growth and trading activity, but the current ecology is indeed poor.
