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Economics

The CHAIN token is the official currency of the Zentachain network.

General CHAIN Supply

The total supply of CHAIN tokens is 5,000,000. This fixed supply was determined at the time of the token's genesis and will not change. The distribution of these tokens was allocated to various categories, including trade, team, company, and investors & exchange.
  • Trade 1: 1.000.000 = 20%
  • Trade 2: 1.000.000 = 20%
  • Team: 1.375.000 = 27.5%
  • Company: 687.500 = 12.5%
  • Community: 137.500 = 2.8%
  • Investors & Exchange: 800.000 = 16.0%

Estimated Token Supply Schedule

  • Trade 1: 1,000,000 = These tokens will be released in tranches of 25% every three months.
  • Trade 2: 1.000.000 = Unlocked
  • Team: 1.375.000 = Unlocked
  • Company: 687,500 = Unlocked
  • Community: 30.000 = These tokens will be released in tranches of 30.000 tokens per year.
  • Investors & Exchange: 800.000 = These tokens will be released in tranches of 100,000 yearly.

According to the information, the following tokens are already unlocked:

Trade 2: 1,000,000 tokens (20%) Team: 1,375,000 tokens (27.5%) Company: 687,500 tokens (12.5%) This means that a total of 3,062,500 tokens, or 61.25% of the total supply, are already unlocked.
In the first year, the following additional tokens will be unlocked:
Trade 1: 1,000,000 tokens (20%) - These tokens will be released in tranches of 25% every three months. In the first year, a total of 250,000 tokens (25% of 1,000,000) will be released.
Community: 30,000 tokens (0.6% of the total supply) - These tokens will be released in tranches of 30,000 tokens per year. In the first year, a total of 30,000 tokens (30,000/year) will be released.
Investors & Exchange: 800,000 tokens (16.0% of the total supply) - These tokens will be released in tranches of 100,000 tokens per year. In the first year, a total of 100,000 tokens (100,000/year) will be released.
This means that 380,000 additional tokens will be unlocked in the first year. When added to the 3,062,500 tokens that are already unlocked, this brings the total number of unlocked tokens to 3,442,500, or 68.85% of the total supply. This calculation is based on the distribution of non-staked CHAIN tokens.

Staking Supply Chart Company & Team

The company and team tokens are being staked, and the total number of unlocked tokens in the first year would be reduced by the number of staked tokens.
According to the information, the company and team tokens make up 27.5% + 12.5% = 40% of the total supply. These tokens are being staked, this means that 40% of the total supply, or 2,000,000 tokens, would not be included in the calculation of the total number of unlocked tokens in the first year.
Therefore, the total number of unlocked tokens in the first year would be 3,442,500 tokens - 2,000,000 staked tokens = 1,442,500 tokens. This represents 28.85% of the total supply.

Staking Pool Size & Inflation

One way to manage price volatility and limit the inflation percentage for the CHAIN token is by implementing a pool size token limitation. This means setting a maximum number of tokens that can be in circulation at any given time.
By limiting the pool size, the supply of tokens is kept in check, which can help to prevent price volatility and excessive inflation. When the pool size reaches the maximum limit, new tokens can no longer be minted, and the supply remains stable.
This can be beneficial for the overall stability and value of the CHAIN token, as it reduces the risk of sudden price fluctuations and helps to maintain a consistent level of inflation.
For example, if the community decides that the current pool size of 20% and the APR of 16% are not sufficient to manage price volatility and limit inflation, they can vote to change these values. The community may choose to increase the pool size or the APR or to implement other measures to help manage the value of the CHAIN token.

Inflation due the Company and Team:

If the company and team tokens are being staked at a 16% annual percentage rate (APR), this means that they will receive a percentage of their stake back as rewards each year.
For example, if 40% of the total supply of tokens (the company and team tokens) are being staked at a 16% APR, and the initial number of tokens is 1,442,500, the number of tokens being added back into circulation as rewards would be 40% * 1,442,500 * 16% = 122,080 CHAIN tokens.
The final number of tokens after staking would then be 1,442,500 + 122,080 = 1,564,580 CHAIN tokens.
Inflation rate = (1,564,580 - 1,442,500) / 1,442,500 * 100% = 8.23%. This means that the inflation rate after the company and team tokens are staked at a 16% APR is 8.23%. This represents an increase in the inflation rate compared to the initial number of tokens.

Zentanode Supply & Inflation Miners

Example: If there are 500 Zentanode owners each receiving 25 tokens per month, the total number of tokens distributed per month would be 25 tokens/owner * 500 owners = 12,500 tokens/month.
In the first year, there are 12 months, so the total number of tokens distributed in the first year would be 12,500 tokens/month * 12 months = 150,000 tokens.
Therefore, if the starting number of unlocked tokens is 1,442,500 and an additional 150,000 tokens are distributed in the first year through the Zentanode product, the total number of unlocked tokens at the end of the first year would be 1,442,500 + 150,000 = 1,592,500 CHAIN tokens.
Calculate the inflation rate based on the distribution of tokens through the Zentanode product:
Inflation rate = (1,592,500 - 1,442,500) / 1,442,500 * 100% = 10.34%. This means that the annual inflation rate for the first year is 10.34% by Zentanode.
If the community decides that the inflation rate of the CHAIN tokens is too high, they may choose to vote for a change to the Zentanode rewards. This could involve reducing the number of CHAIN tokens that are distributed through the Zentanode product, which would lower the overall inflation rate. However, it's important to note that changing the rewards for the Zentanode product would not lower the price of the Zentanode product itself.

The price of a product or service is determined by a variety of factors:

  • The cost of producing or providing the product or service
  • The level of demand for the product or service
  • The level of competition in the market
  • Changes in market conditions and trends
  • Government regulations
  • Economic and political events
As such, even if the rewards for the Zentanode product are changed, the price of the product may still be influenced by other factors. As a result, Zentanode by Limitation of product and CHAIN token prices increased. You can read more about it here:

Zentachain Currency

The CHAIN token is the official currency of the Zentachain. It can be staked by the network participants and used to pay fees for services such as Zentalk and Zentanode. It also serves as a reward for miner Zentanodes that support the AI Zentamesh network.
Learn more about of use-cases of the CHAIN token:

Trade Details Overview:

  • Trade 1 - 1,000,000 (M) CHAIN's - Price 0,50 USD - Official = Finished
  • Trade 2 - 1,000,000 (M) CHAIN's - Price 5,00 USD - Un-Official = Upcoming

Disclaimer

This document is not intended to be an offer or solicitation for the purchase of CHAIN tokens. The information contained in this document includes hypothetical, forward-looking and/or projected figures that are not guaranteed to be accurate. Zentachain makes no representation or warranty, express or implied, as to the completeness or accuracy of this presentation and it is subject to change without notice.
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