An introduction of DBC tokenomics and long-term value
The ecosystem of computing power is the most crucial part of DBC’s tokenomics. DBC has a total token supply of 10 billion. 40% of them are produced by computing power providers, and 10% of them are rewarded to the miners before the mainnet launch, which means that a total of 50% of the tokens are allocated to the computing power provider. 1 billion DBC tokens are the rewards to the DBC team, with a 10 year lock period and unlocking 10% each year. The reason for doing this is that we always believe that DBC is a project with long-term value. At present, the total number of DBCs in circulation is 3.9 billion.
The rewards for the DBC computing power ecosystem construction consists of two parts: super node reward and machine online reward. The first 3 years of mining generates a totally of 500 million DBCs per year. The supernode reward is 100 million DBC tokens per year and the machine online reward is 400 million per year. Since the 4th year, the mining production will reduce by half every 5 years.
Supernode staking roles:
There are 21 supernodes at the beginning of mainnet launch, and 10 nodes are added every quarter (the number of nodes may change according to real condition). After completing mainnet launch, supernodes are expected to stake 300 million ~ 1 billion DBCs.
1. Each node stake DBC at first to participate in the vote of “supernode”.
2. Any DBC holder can stake DBC to vote for the node.
3. If the node’s total amount of staking DBC, including both voter’s and the node itself’s, is at the top 21 of all the nodes, it can become a supernode. The vote is held every 24 hours.
machine online roles:
After the start of the Galaxy Contest, the total amount of staking DBC is expected to reach 500 million to 1.5 billion.
1. For the first 10,000 cards, each card needs to stake 100,000 DBCs;
2. Since the 10001 cards, the formula for the number that each card needs to stake is: 100,000×10000/the total number of cards participating in staking
According to the above formula, the stakeing cap for a single card is RMB 50,000.
For example:
Assuming that 20,000 cards participate in staking, then the amount of DBC staked by each card is 100,000×10000/20000.
For the DBC staking mentioned above, the staking period is at least 365 days. if the machine has been online exceeding 365 days and has not been used for more than 10 days, it can choose to unstake. Then the staking DBC will be released within 3 days, and the previously obtained rewards will continue to be released linearly.
burning mechanism
The burning mechanism is also an important part of DBC’s tokenomics. The DBC burning mechanism will be officially implemented with the beginning of the Galaxy Contest. 100% of the GPU rent will be used to burn DBC. For example: If the amount of cards is 10000, there will be 10 million yuan used to burning DBCs. If the DBC token price is 0.1 yuan, 100 million DBCs will be burned every month. during the process of staking burning, the price of DBC token fluctuates, and the quantity of burning is related to the price.
