The Benefit Of Nitro Network’s Burn & Mint Equilibrium Model
At Nitro Network, we are always finding new ways to reward the community and ensure that taking part in our vision is an enriching experience. With that being said, we would like to introduce our upcoming Burn & Mint Equilibrium (BME) model. The model supports a deflationary measure to ensure the token value of NCash remains healthy and will allow the community to receive more value and utility from using the NCash token.
How does Nitro Network’s BME model work?
Essentially, Nitro Network’s BME model is composed of two different categories of tokens: value-seeking tokens and payment-seeking tokens. Although these two types of tokens are in different categories, there is interdependency between them. Let’s look at the purpose of each type of token:
- Value-seeking tokens: The only purpose of these tokens is to be burned. Once burned, these tokens turn into payment-seeking tokens.
- Payment-seeking tokens: The purpose of these tokens is for participants to utilize services on the Nitro Network, such as engaging with smart devices.
Now that we’ve explained the fundamental difference between the tokens, let us reiterate how they will operate in unison. Once value-seeking tokens have been burned, payment-seeking tokens are provided in their absence. With payment-seeking tokens, users may take advantage of the various applications and functions on the Nitro Network, such as engaging with smart devices. One important factor to keep in mind is that payment-seeking tokens are not used for peer-to-peer transactions. Rather, they are only used to acquire services on the Nitro Network.
The primary objective of the BME model
The primary objective of the BME model revolves around the simple, straightforward logic of creating demand and utility for NCash. This will decrease the supply of NCash and create true value. In other words, as the community grows and earns NCash with Nitro Network, the value of NCash is set to increase in parallel.
In addition, the BME model is aimed at incentivizing the community to participate and utilize the Nitro Network. A large amount of NCash tokens generated through the BME model will be used for building out Nitro Network’s infrastructure, as well as providing users with transaction rewards.
BME token distribution
Tokens generated through the BME model will be distributed into three categories, which will create a healthy balance for the Nitro Network. Let’s take a look:
- Infrastructure: 41% of the tokens will be utilized to create and maintain our robust network infrastructure
- Data network: 24% of the tokens will be used for mining and community incentive programs
- Team and investors: 35% of the tokens will be allocated to the Nitro Network team as well as venture capitalists.
* These percentages are reflective of the first year of token distribution. Please refer to the Nitro Network Token Distribution document for more information.
At Nitro Network, every strategy we implement is focused on how to keep our community happy and rewarded. The BME model is a key part of this plan, adopting a deflationary structure to ensure increasing demand and value of NCash. Moreover, our BME model is an effective way to incentivize each and every member of the Nitro community to participate and earn rewards!
About Nitro Network
Nitro Network is building the largest decentralized private communication network 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’s decentralized PCN are part of an inclusive ecosystem that they own, operate and earn from. Nitro’s PCN will be a game-changer and has its proprietary token, NCash, at its core. On Nitro Network, everybody wins!
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