Insight into Revolutions of Bytom 2.0 (1): New Economy
This is the first article of Bytom 2.0 evolutions explained, and we want to help people to get more understanding about Bytom 2.0.
New Economy that is, a new economic model, will usher BTM token in a deflation era, token holders can participate in the public chain governance.
At present, the total amount of BTM token on PoW-based Bytom blockchain is 2.1 billion, of which the total number of unmined BTM token is about 400 million. According to the current release amount, PoW-based Bytom blockchain releases 80 million per year, and Vapor, the sidechain releases 10 million per year.
After Bytom blockchain upgrading to PoS, BTM token will have three changes:
1. The total number of the new BTM token will be reduced from 2.1 billion to 1566 million.
2. Supposing that all of the 1566 million BTM token are migrated to the PoS-based Bytom blockchain, a large part of which will become node staking and locked for a long time, so the total circulation volume of BTM token in Bytom 2.0 epoch will be greatly reduced.
3. The annual increase in issuance will be reduced. In Bytom 2.0 epoch, it is still necessary to use BTM token to motivate consensus nodes to maintain the security of public chain, but Bytom 2.0 will ensure that the BTM’s issuance is far less than the current stage, with a maximum of 30million.
The new BTM token will usher in an era of deflation, because the introduction of GAS mechanism will realize the value capture of BTM token. With the increase of on-chain trading volume brought by DeFi, BTM token will keep being “burnt” as trading fee.
Bytom 2.0 will also broaden the practical scenarios of BTM token. According to the WhitePaper, the practical scenarios include but is not limited to voting governance, purchasing basic services, consensus node election, participating in other public chain mining, airdrop, trading fee discount (holding BTM token can enjoy the trading fee discount of the on-chain DeFi protocol), collateral & lending.