Understanding Calculus Tokenomics — The CAL Token

The economic design of the Calculus decentralized consensus network aims to create an efficient and robust foundation for the masses. The Calculus network aims to align incentives and pragmatically reward useful and reliable storage, but without any addendum and with freedom of the stakeholders at the center.

Every participant in the Calculus ecosystem has a role to play as well as a stake in its success. Each role player is incentivized to cooperate and compete in ways that maximize the network’s utility.

Yes, everybody and anybody can become a participant of the Calculus network. You are the star player of your game, and when you do it right, the network rewards you for keeping it healthy and for your storage resource contributions.

The relationship between blockchain technology, cryptocurrency, tokens, and decentralization is apparent but at the same time complex. Let us find out how- the merger of blockchain, cryptography, tokens, and decentralization of data storage changes the normal order (one that is broken inside out!). But let’s also take it slow — one read at a time.

The star subject of today’s post is CAL — the native and functional token of the Calculus network.

On top of the incentives, block rewards, functionality, economy, and network sustainability lies CAL — the native token of the Calculus decentralized data storage network. In this post, we aim to unpack the Calculus Tokenomics, provide more insights into the value maker of the network, and how different stakeholders can participate in the Calculus economy.

Introducing the CAL Token — There’s More to It Than What Meets the Eye!

The CAL token has an important role to play for the different participants in the network, and its importance shall increase as the Calculus network evolves. We believe it will be critical to the network’s success for those participants who have a greater understanding of the architecture, visibility around, and confidence in the CAL token.

CAL as a Utility Token

CAL is a utility token that is meant to be used, giving token holders the right to use the Calculus network. On the network, you can expect to see storage providers with their own unique traits, smart contract systems, lending services, thus bringing them a diverse set of use cases. Each of these endeavors can become budding businesses of their own. Hence, the utility of the Calculus network translates well in the attractiveness of those goods and services that the participants shall create within the network.

Understanding the CAL Tokens Circulating Supply

The actual structuring of the CAL Token’s circulating supply is non-trivial, and the initial token supply is determined by several interdependent factors.

But before we start, it is important to touch upon the difference between the maximum token supply and the circulating token supply. The maximum token supply refers to all the tokens that shall ever be in existence, while the circulating supply refers to those tokens available for market transaction at any given point in time.

Calculus has a fixed maximum supply of one hundred million CAL tokens at the time of network initiation. The CAL token’s total supply is distributed in the following manner:

• 52,000,000 CAL consensus community development (52%)
• 3,000,000 CAL project consultant (3%)
• 8,000,000 CAL business and marketing (8%)
• 12,000,000 CAL transferred to investors (12%)
• 10,000,000 CAL technical team award (10%)
• 15,000,000 CAL reserved by the foundation (15%)

Using the generated blocks, there are rewards for redeeming points in each cycle, which are mainly awarded to the nodes participating in the network to maintain the security of the network protocol and encourage each participant to take part in the network in the early stage.

The general distribution method is as follows：

- 52,000,000 CAL for the first year

The hourglass issuance mechanism is adopted, and the issuance is halved every two years. Starting from the second year, the annual issuance volume is 70.71% of the previous year’s and will not decrease until the full inflation rate reaches 1.7%. Therefore, since the 11th year, the inflation rate is constant at 1.7%, and the amount of tokens generated every year is constant at 1,700,000 CAL.

It is important to note that the economic architecture in the Calculus ecosystem aligns stakeholders to long-term community participation on the network. The most essential goal for the Calculus community is to make the network as efficient and utile as possible by enhancing the use cases, improving infrastructure and tooling, and assisting the network with the cause of scalability.

Aligning Calculus Participants With Reliable Storage

As a blockchain-based decentralized storage solution, Calculus incentivizes proper behavior on the network with rewards and penalizes bad conduct with penalties. Calculus incorporates several mechanisms in order to maintain the highest standards of incentives to form quality, high and sustainable, and long-term storage networks.

Spanning from providing storage capacity to the network to meeting the user’s storage demand, miners on the Calculus network must lock CAL tokens for the security of the consensus, storage reliability, and guarantee of contracts. CAL tokens are locked as pledge collateral and bring storage supply to the network.

Naturally, that brings us to the two main use cases of the CAL token –

1. In case of a power failure and network disconnection of the supernodes, interruption during data encapsulation, sector failure, early termination of transactions, etc., will cause the system to punish miners, and all CAL tokens penalized by the system will be destroyed.

2. Aligning with the EIP — 1559 protocol, the message uplink service fee of Calculus consists of two segments — First is the cost of direct recording, according to the protocol, and second is the network transaction fee as well as the bandwidth calculated by the payment chain, both of which are destroyed directly.

Calculus Transaction Fee — Aligning CAL Token Supply With Network Usage

For as long as there is action and utility of the Calculus network, the CAL tokens shall be consumed to compensate for the computational and storage resources.

Conclusion

We have been operating in stealth mode for what seems like a long time. We call to a future community that is not only enthusiastic about a revolution that will usher a new era to the web, again (literally). Calculus will change the way you perceive data. Data is currency, and it is high time we leverage decentralization (accurately) to bring you and the industries new wings to conduct data storage, manage data transmission and derive value. As we progress, we shall release even more detailed and updated CAL token flow and supply reports.

Say hello to Calculus and learn more about the network as well as other features-

• Twitter: https://twitter.com/calcu_io
• Website: https://www.calcu.io/
• GitHub: https://github.com/calcuio