IO Tokenomics

Tokenomics refers to the overall structure and mechanism of a token and how it operates within an ecosystem. It involves factors such as token distribution, supply and demand dynamics, utility within the ecosystem, incentives for stakeholders, governance mechanisms, and mechanisms for value capture and distribution. This document provides transparency about the tokenomics of io.net.

io.net’s tokenomics are based on three principles:

A fixed maximum supply of 800 million $IO
Hourly rewards to Suppliers and their Stakers
An $IO burn mechanism

Fixed Supply

There is a fixed maximum supply of 800 million $IO coins.

500 million $IO coins will be distributed when it launches.
300 million remaining coins will be emitted and paid to Suppliers and their Stakers as Rewards. This occurs every hour.

Hourly Rewards

Rewards are released to Suppliers and their Stakers hourly for 20 years. Rewards follow a disinflationary model, starting at 8% in the first year and decreases by 1.02% per month (~12% per year) until the 800 million $IO cap is reached.

The charts below provide details on the emission and annual inflation rates.

Figure 1. Emission rate as a function of total emissions pool.

Figure 2. Yearly Inflation Rate.

Figure 3. Coins already emitted by year versus remaining Coins to be emitted.

Burn Mechanism

$IO uses a programmatic coin burn system where revenues generated by io.net from the IOG Network are used to purchase and burn $IO. The $IO burn mechanism adjusts the amount of $IO to be burned based on $IO’s price.

This reduces the outstanding supply of coins and creates deflationary pressure on $IO.

io.net generates revenue by charging fees to both Users and Suppliers. io.net charges Reservation Fees when a reservation for computational power is made. Payment Fees are charged depending on the payment method the user chooses for the reservation and how the Supplier chooses to withdraw Hire Fee earnings.

GPU Renter Fees

Reservation Fees

The IOG Network charges users a 0.25% reservation fee on the total cost to reserve the compute. This is added to the Renter’s cost when reserving.

Payment Fees

For 100% USDC payments, they are charged 2%.
For 100% $IO payments, there are no fees.

GPU Supplier Fees

Reservation Fees

The IOG Network charges users a 0.25% fee on the total cost to reserve their nodes. This is charged to the Supplier when they are paid for the compute.

Payment Fee

For 100% USDC payments, they are charged 2%.
For 100% $IO payments, there are no fees.