Century Coinomics: An Overview of Haqq Network’s Islamic Coin (ISLM) Tokenomics
Let’s look at the Islamic Coin Tokenomics
Introduction
Haqq Network introduces Islamic Coin (ISLM) as its native currency, serving various purposes within the network. ISLM is utilized for payments, governance, transaction fees, and staking. This article provides a comprehensive understanding of Century Coinomics, the economic model governing ISLM, and the mechanisms involved in Haqq Network.
Staking and Governance
Staking involves locking ISLM coins by bonding them to validators who maintain the Haqq Network. Through bonding, ISLM holders delegate voting power to validators, becoming delegators and gaining the opportunity to earn rewards and participate in governance. This process is based on Tendermint BFT, which ensures the security and stability of the network.
Mainnet Launch and Testing
During the initial launch of the Haqq mainnet, the minting of new coins is temporarily disabled, and the network operates with a restricted set of validators controlled by the Core Team. This Proof of Authority consensus mechanism allows for thorough testing of Century Coinomics and enables the Haqq community to learn how to stake and operate their own validators on the Haqq network. To facilitate testing, a public testnet will be launched with Proof of Stake and minting capabilities enabled.
Minting and Rewards
Once testing is completed, and the Haqq Team ensures the stability of the network, minting will be enabled on the mainnet. Validators and stakers will then be able to participate in the Haqq consensus and earn staking rewards. The distribution of newly minted ISLM coins and gas fees collected from users follows a specific allocation:
- 10% is allocated to Evergreen DAO.
- 1% to 5% is distributed to a block proposer and its delegators.
- The remaining amount is proportionally distributed among all bonded validators and their delegators.
Delegators’ rewards are determined based on their delegation amount relative to the total amount delegated to the validator, minus the validator’s commission.
Coin Supply and Emission Rate
The total supply of ISLM coins is limited to 100 billion. The emission rate of ISLM decreases by 5% every two years, known as an Era. The emission will completely stop 100 years from the first block of the first Era. Each Era has a specific allocation for minting new coins, gradually reducing over time. By the end of the 50th Era, 100% of the total supply (100 billion ISLM) will be minted, and no further minting will occur.
Initial Coin Distribution
The initial supply of ISLM coins amounts to 20 billion and will be minted in a genesis block, distributed on the network launch day as follows:
- 2 billion coins are allocated to the Evergreen Foundation according to Century Coinomics.
- 5.5 billion coins are assigned to Partners, including boards, initial supporters, promoters, and market makers.
- 4 billion coins are reserved for the Initial Private Sale, available to qualified private investors.
- 5.5 billion coins are allocated to the Business Reserve and Ecosystem Development Fund, dedicated to public distributions, operational costs, business development, grants, and other ecosystem-focused activities.
- 3 billion coins are designated as the Founders Reward.
Vesting
Founders Reward:
A portion of the Founders Reward, excluding 0.01 ISLM, is deposited into a Vesting Smart Contract upon network launch. The 0.01 ISLM deducted from the Founders Reward covers transaction distribution fees. The Vesting Smart Contract releases 1/24th of the deposited coins immediately, while the remaining amount becomes claimable in portions of 1/24th every 30 days.
Private Sale and Partners Allocations:
The Initial Private Sale and
Partners allocations are not initially locked upon network launch to facilitate distribution among buyers and partners in the early weeks. However, each buyer and partner will have their coins vested based on the vesting schedule applicable to the Founders.
Conclusion
Haqq Network’s Islamic Coin (ISLM) operates on Century Coinomics, a well-defined economic model governing its distribution, minting, and rewards system. With the integration of staking, governance, and a gradual reduction in emission, Haqq Network aims to build a sustainable and participatory ecosystem for its community, validators, and delegators, fostering the growth and stability of the network.