$PLQ tokenomics

A lot has happened since the idea of Planqwas born, all the way back in 2020. Since then we produced our first block (Nov.17, 2022) and went live on Osmosis Labs Frontier (Jan.21, 2023).

Tokenomics are a key factor in the success of Planq , and in this medium article, we will explain everything you would want to know about our tokenomics.

Please note that, as with anything on the Planq blockchain, governance will shape the future of tokenomics.

Supply of $PLANQ

The initial supply of PLANQ is 100,000,000 $PLQ. Within the first year, this will increase by 13,500,000 $PLQ for a total of 113,500,000 $PLQ. While minted, not all tokens will be in distribution straight away. Inflation will be distributed to stakers and validators of the $PLQ blockchain as block rewards.

Avarage inflation chart per month. Source: https://static.planq.network/whitepaper.pdf

For easier reference, we also made this table for this years inflation:

Table of inflation per month. Source: https://static.planq.network/whitepaper.pdf

Total PLANQ in Circulation

PLQ has a unique distribution model, where the first 100 million $PLQ minted at genesis will be distributed & unlocked over a +- 2-year timespan. We believe this is the fairest way to distribute without any one party having a majority of tokens straight away. The minted supply (blue line) is locked up, and at the end of each month, approximately 3,7% of the token will be distributed between:

• The founders/team: 833K Per month
• The Treasury: 1M per month
• The community pool: 1M Per month
• Advisors: 872K per month

This brings us to a token unlock of 3,705,000 (or 3,7% of total genesis supply) tokens a month, not including inflation.

Interactive version to be found on: https://planq.network/whitepaper#tokenomics Source: https://static.planq.network/whitepaper.pdf

For a better overview of the circulating supply & unlock schedule we have made the chart above interactive. you can find the chart here.

All tokens from genesis will be unlocked in February 2025, if tokenomics do not change from governance before that date, a new proposal will be made to fund the pools above. While this might look a little bit different than vesting contracts, in reality the outcome is the same.

Block Rewards

As for block rewards, 2% of all block rewards are sent to the community pool. 98% will be distributed to stakers and validators of the $PLQ network. For further insight in how the PLQ framework distributes staking rewards, click here.

Community pool

1 Million tokens were donated to the community pool in December. These 1 Million came from the block rewards the Foundation validator received in the first month of its lifespan.

Conclusion

This token model is created to bootstrap the $PLQ ecosystem and distribute tokens fairly, without the possibility of one party having a majority of the total supply right away. We are a community project first and we strongly believe this token model achieves this vision.

In a future post, we will go over what activities will and could be funded with the pools stated above.