Nitro Network Tokenomics Update
With the worldwide adoption of crypto just around the corner, those in the market know how important it is for a Web3 business to solidify, improve and update its tokenomics. With transparency, inclusivity and progress in mind, Nitro Network would like to present its first NCash tokenomics update.
This update outlines current and future minting rates, plans to burn tokens and details pertaining to reward distribution. Nitro Network is committed to transparency and clarity around the evolving role tokenomics plays in its ecosystem, so this update seeks to resolve some questions raised by the community.
Nitro Network’s NCash Minting & Distribution
Nitro Network’s goal continues to be to reward all participants for their contributions to network development while accelerating the development process for its tokenomics and private network clients, which is close to reaching its full implementation. To start, Nitro Network aims to reassure everyone that rewards for its current community programs will be minted and distributed to settle all outstanding claims.
This will require strategically building infrastructure; therefore, Nitro Network will adopt a “mint as per usage (generative minting)” reward strategy by offering different pools for those who join now. Moreover, Nitro Network will create a Network Data Transfer rewards pool for early network participants, placing them in the “partially active” category.
Other categories in Nitro Network’s tokenomics will be implemented at a later phase of the project, but for now, they will remain inactive to avoid any kind of excess token minting. Nitro Network’s core team has compiled the data below to show all the various categories and the current minting and distribution statuses of each.
Current NCash minting & distribution allocations
Nitro Network’s current areas of focus will be on Network Infrastructure Mining, Network Coverage Validation, Network Data Transfer and Staking Rewards. These available pools will be distributed between Miners and Nesters, with a higher allocation going to those in the upper tiers. The different allocations are as follows:
- ICONIC (Tier 1) will be allocated 42%.
- PREMIUM (Tier 2) will be allocated 33%.
- TOP (Tier 3) will be allocated 25%.
The following table provides more detailed information on each reward category and its respective allocation:
Network Infrastructure Mining & Network Coverage Validation
Here are the details for these two reward pools:
- For the Network Infrastructure Mining reward pool, there will be a supply of 1.0865 billion⁺ NCash per month for the first year, with 80% allocated to Miners and 20% to Nesters.
- For the Network Coverage Validation reward pool, there will be a total supply of 299.3 million⁺ NCash per month exclusively for Nesters. From this supply, Phase 1 Nesters will receive rewards from the Tier 1 pool of 125.7 million⁺ NCash.
Nesting rewards are slightly higher for phase 1 to create incentives for early adopters and participants on the network — only 1,000 Nesters in Tier 1 cities are currently supported with the first wave of Nitro ION Miner deployment. Check out this article for more information on Nitro Network’s Phase 1 rollout.
Network Data Transfer & Staking Rewards
The third reward category offered right now is the Network Data Transfer pool, which is allocated according to network usability, namely data usage and data packets transfer data.
The Network Data Transfer pool is currently restricted to just Phase 1 Nesters of Tier 1 cities, as an early incentive for assisting with building the infrastructure, by:
- Awarding NCash rewards to these hosts every epoch from a monthly pool of 50.4 million⁺ NCash.
- Activating rewards at a later time for both Miners and Nesters from their respective reward pools once the network is active and bringing utility.
Finally, Nitro Network will continue to reward users who hold NCash on the platform, rewarding them for holding the currency and making use of it by:
- Offering a total supply of 664.2 million⁺ NCash from the Staking reward pool that will be minted as per usage and current demand. This same approach will apply to Ecosystem rewards as well.
- Sharing the minting data for these pools in our bi-weekly Nitro Bulletin.
Revision of NFM mint targets
Originally, Nitro Network’s NFM total mint target was 20,000 with rewards that were calculated based on those figures. Nitro Network has announced plans to revise its NFM mint maximum as a result of the disparity between the original NFM mint maximums and the actual NFMs minted. Nitro Network’s goal with this revision is to provide its community with a more beneficial transaction and reward distribution system.
The revised NFM mint maximums and rewards are as follows:
* NFM Mint Maximums are for respective tiers and their respective rewards are subject to change when milestones are achieved. The reward pool and per EPOCH reward will be dedicated/distributed among the set NFM Minting number(s) and Nesters (as per phase), including active/inactive miners/nesters. Distribution of reward among miners and nesters is subject to their participation.
** These numbers are subject to change due to various factors such as market conditions and demand/supply restrictions. The new rewards will start from the first week of September, details of which will be announced publicly in the near future.
Details for Nitro Network’s Token Burn
Additionally, there’s more news concerning Nitro Network’s token-burning mechanics. Along with the revenue Nitro Network receives from network usage (NOS use), a portion of the token burn program will be derived from reward pools that aren’t being consumed. A small percentage — generated by NFM sales — will also contribute toward this burn effort.
This will be an ongoing part of Nitro Network’s long-term plan — judiciously decreasing the total supply of NCash to drive demand via reduced minting as a function of lower usage and by employing a recurring token-burning mechanism; the push and pull of supply and demand are essential components of any successful tokenomics model.
Click this link to visit the burn portal.
The entire team at Nitro Network is committed to building a stronger, equitable digital economy with its products and services. Nitro Network is confident that blockchain technology has the power to bring about positive change in the world, and the team is truly excited about the possibilities of what is to come.
Nitro Network will release more updates to the community as new reward pools are activated! Make sure to join the Nitro Network Discord to stay up-to-date — and even get those burning questions answered!
⁺Terms & Conditions apply:
- Reward distribution from the allocated pool is subject to multiple factors such as claim process, stakeholder’s (NFM holders, stakers, Nesters) participation, and the number of NFMs staked and active number of Nesters.
- The minting, distribution, claim and reward process is subject to change as per the market conditions and unavoidable circumstances
About Nitro Network
Nitro Network is building the largest decentralized private communication network (PCN) powered by IoT combined with LoRaWAN and 3G/4G/5G. This hyperconnected world will enable unlimited use cases in our everyday life. Participants of Nitro Network’s decentralized PCN are part of an inclusive ecosystem that they own, operate and earn from. Nitro Network’s PCN will be a game-changer and has its proprietary token, NCash, at its core. On Nitro Network, everybody wins!