The AIOZ Network provides an extensive web3 framework for storage, decentralized AI computation, live streaming, and video on demand (VOD), driven by community involvement. With the rise in digital content consumption, traditional systems are challenged to keep pace with the demands of a generation increasingly reliant on online services.
AIOZ is currently revising its tokenomics in preparation for the AIOZ W3S launch. This revision aims to meet the anticipated needs of the network's swiftly growing array of infrastructure products and dApps, while also ensuring equitable rewards for the stakeholders contributing to and participating in the Network.
Current AIOZ Network Tokenomics
Following the successful deployment of the AIOZ Network Mainnet in December 2021, the AIOZ Network token experienced a 9% inflation rate starting from March 2023, attributed to block time production. Recognizing that high inflation rates may contribute to economic instability, the AIOZ Network has initiated a strategy to decrease token inflation incrementally. This approach is designed to foster a stable economic climate for all participants within the AIOZ ecosystem.
AIOZ Commitment to Minimal Inflation
Starting December 25th, 2023, the AIOZ Network token's inflation rate will decrease annually by 1% on the same date, over four years. This strategy will result in a cumulative reduction of 4%, establishing a stable inflation rate of 5% by 2026.
Inflation rates are as follows:
- 8% on December 25th, 2023
- 7% on December 25th, 2024
- 6% on December 25th, 2025
- 5% on December 25th, 2026
Aiming for a long-term base inflation rate of 5%, AIOZ's goal is to enhance incentives for stakeholders within the AIOZ Network significantly. The allocation of inflation proceeds remains unchanged:
- 50% rewarded to Validators/Delegators
- 50% directed to the Treasury
The AIOZ treasury will allocate funds to support the growth, adoption, and expansion of four key infrastructure components currently under development:
- AIOZ W3S
- AIOZ W3AI
- AIOZ W3IPFS
- AIOZ W3Stream
This initiative is expected to drive the AIOZ Network's developer and partner ecosystems, increasing the use of AIOZ tokens. These tokens will serve as a payment method within dApps on the AIOZ Network, fostering a robust ecosystem of dApps, developers, and users and enhancing the token's utility.
Token Burn Strategy
AIOZ are committed to ensuring the AIOZ Network token's long-term viability by introducing measures like programmed token burns based on network activity and routine burns across various sectors.
Token burns will be executed in the following scenarios:
- 50% of all AIOZ Network blockchain transactions
- 5% of all node rewards
- 5% of all infrastructure revenues
- 5% of all revenues from AIOZ native dApps
In conclusion, the AIOZ token is a cornerstone of the AIOZ Network ecosystem. The network's prosperity partly hinges on a well-regulated token economy. By conducting regular token burns and curbing inflation, we aim to prevent complications arising from an excess supply of tokens, thus maintaining a secure and enduring ecosystem.
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