The best of many worlds
Alephium is the first operational sharded blockchain bringing scalability, ETH-inspired secure smart contracts, and energy efficiency to Bitcoin’s proven core technologies (UTXO and Proof-Of-Work) while ensuring better performance. Alephium also focuses on usability and accessibility making it the perfect blockchain to support decentralized applications and open protocols.
Alephium is built on the BlockFlow and PoLW algorithms. BlockFLow delivers efficient and practical stateful UTXO sharding. PoLW uses a clever combination of physical work and token economics to dynamically adjust the work required to mine new blocks, ensuring a reduced energy footprint compared to classic Nakamoto PoW mining.
As in many other blockchain networks, the token mechanism of Alephium is crucial for its operation.
The Alephium token recently adopted its official ticker symbol ALPH. It contributes to the blockchain’s decentralization and overall security by incentivizing miners for the processing of blocks on the Alephium blockchain.
Mining is a core mechanism of the Alephium blockchain: it is the mechanism by which transaction records are added and verified across the network. The token also serves the purpose of securing the Alephium network against DDoS and spam attacks via transaction fees payable in ALPH token.
As Alephium uses Proof of (Less) Work, staking isn’t supported natively on Alephium. However in the future, staking or liquidity pools could be offered by third party decentralized applications or protocols built on top of Alephium.
The token supply on Alephium is limited to 1 billion (HardCap). At Mainnet Launch, an initial supply of tokens will be mined with the genesis block. The initial supply amounts to 140M tokens (14% of the HardCap). The remaining supply of ALPH tokens will be mined over the years.
The initial supply of tokens will be allocated over time as follows:
- 80M tokens (8%) will be allocated for past and future sales. Tokens sold will be subject to on-chain lock with vesting periods varying from 2 to 4 years, released quarterly.
- 30M tokens (3%) will be allocated for community and ecosystem development. These tokens will be locked for 4 years, and be vested 10M, 10M, 5M, 5M each year in quarters accordingly.
- 30M tokens (3%) will be allocated to reward the team and support future developments of Alephium. These tokens will be locked for 3 years, and be vested 10M, 10M, 10M each year in quarters accordingly.
The rest of the tokens (86%) will be used for mining rewards and ensure the processing of transactions on the Alephium blockchain. After being mined, ALPH are locked for 500minutes.
In addition, half of the transaction fees are burned with each block and Alephium’s Proof of Less Work enables internal mining cost through burning when the hashrate and energy consumption are significantly high.