Nitro Network (formerly Nucleus Vision) announces token model same as Helium — Burn and Mint mechanism

Nitro.Network
6 min readOct 27, 2021

Well into our second phase of growth, we at Nitro Networks are excited to announce a comprehensive token model strategy that is highly incentivized with the objective of rewarding the community to become miners. On the Nitro Network, community miners can create incentive as they collect a basketful of rewards for their efforts in owning and building the networks.

Our token economics is closely linked to our approach of creating a decentralized private telecom network and an economic system with our proprietary token, NCash at the core. The idea is a simple yet powerful one. As the community builds and earns from the network and earns tokens as rewards, the usage will drive value for NCash.

In addition to providing network coverage, In stage Nitro Network’s LoRaWAN IoT powered miner sensors will act as nodes as miners built on a trustless blockchain system delivering transaction speed and scalability to support millions of IoT devices driven use cases.

NCash to emulate Token model of its successful competitor — Helium

Our token and incentive model is based on extensive research of the most successful projects’ token models, especially a direct co-related competitor — Helium. After much analysis, We have based our token strategy to follow Helium to incentivize our community with a governance model to give control in the hands of our community for future improvements. Like Helium, we are also adopting burn-and-mint equilibrium. The burning and minting process of NCash will be communicated. Infact, in some incentive mechanisms, we identified gaps and have improved the model to maintain the stability of the network to grow consistently. Technically if you notice, there is no difference between Helium and the NCash token model. You may notice the number of tokens between Helium and Nitro — this is best explained by an analogy such as cutting a pizza. Imagine Helium and Nitro have the same size pizza and Helium decided to cut it into 4 pieces and Nitro cut it into 8 pieces. Ultimately, the pizza or our token model is the same. Nitro just decided to have more tokens to give to its community.

Why did NCash evolve the token model to emulate Helium?

  1. Grow & incentivize community participation

a. NCash was launched with a legacy smart contract that did not have provision for a community incentive program in 2018 which limited community participation and growth. A new model with such provision will create exponential growth in its community.

b. Majority of the tokens will be used towards building infrastructure and rewarding the community for transactions.

i. Infra token incentives for miners

1.100% NCASH token back for buying miners

2.187% APR on Staking Miner Tokens

3. Additional network governance and network utilization incentives every month

c. Building liquidity pools for creating liquidity is a function of community decentralized liquidity pool incentives

Liquidity Pool

2. Decentralize Infrastructure Ownership of the network

a. Main objective is to decentralize ownership of the network and allow the community to own and earn reward

3. Decentralized Governance

a. The goal of Nitro Network is to become a DAO and allocate all of the control over to its NCash holders for decisions about the incentive programs going forward. Hence, creating a supporting token incentive model to encourage participation was an important next step.

Our Token Economics Strategy- Ensuring Optimized Supply

We have adopted a token economic concept to ensure the NCash supply is both plentiful for the network requirements but at the same time relatively scarce, with a known maximum. The token model is built on a two-year halving schedule with a maximum supply of 250 Billion NCash, a very similar inflation model as Helium. This way, we aim to hit the inflation coming down close to 0% in year 6. The graph below explains the strategy in detail.

Helium’s supply and inflation model

Reference: Helium website

NCash’s supply and inflation model:

Token Distribution

Our token distribution is built around three major aspects — (i) Infrastructure where 35% of the tokens will be used creating and maintaining the network infrastructure (ii) Data Network — 30% of the total tokens will be used for miners and community incentive programs (iii) The remaining 35% is categorized under Team and Investors Tokens. Tokens allotted to Infrastructure will decrease 1.5% every year while the Security Tokens will decrease by 1% every year, settling at 15%. The remaining 2.5% will be added to the data network on a yearly basis. You can check the graph below for details of the distribution pattern.

Token Distribution of Helium HNT

Token distribution of NCASH

What NCash Holders and Miners can expect

The new token structure has been prepared to incentivize the community to become miners, liquidity providers, and investors to grow value in the project. A portion of team and investor allocation will be used for rewarding the Genesis Node (current NCash holders) for holding NCash. Investors contributing to the liquidity pool and staking will be incentivized from the Infrastructure bucket. Miners will receive rewards for functioning as hosts and performing other functions and in the process driving network security and success as the network reaches optimal traction. More details are to be shared in the following articles about participation, incentives, and distribution of NCash to the community.

Summing Up
Our token economics is a proven model of success and offers a winning proposition for miners and participants of the network. Our community-centric focus inspires us to offer optimized incentives and a token distribution system where everybody can participate, earn and create limitless wealth for themselves. Happy mining.

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About Nitro Network (formerly Nucleus Vision)

At Nitro Network, we are building a world of private communication networks powered by IoT together with LoRaWAN/3G/4G and 5G. This hyperconnected world is the IoT alternative to cellular networks unlocking a $3 trillion market opportunity. We believe our decentralized private telecom network is a gamechanger built on a blockchain with our proprietary token NCash at the core that drives utility and value from unlimited use cases. We are creating an inclusive ecosystem incentivizing users to own, operate and earn from the private networks of the future.

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Disclaimer: This is not investment advice. Please do your own research before investing in any avenue. The information contained in this post is for informational purposes only. You should take independent advice from a professional or independently research and verify, any information that you find in this post and wish to rely on, for the purpose of making any decision. Through this post, you may be able to link to other websites which are not under the control of Nitro Network. We have no control over the nature, content, and activity on those sites. The inclusion of any links does not imply a recommendation or endorsement of the other website, its products, or views.

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