CUDOS
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CUDOS

The 10 Billion CUDOS Question

We’d like to share more of the reasoning behind choosing specifically 10 billion CUDOS as the total token supply for the network and how that compares to other cryptocurrencies.

There are a myriad of considerations to make for any project launching their own token including; total supply, release schedules, allocation pots for R&D, marketing and community development. The lockup and vesting terms for private buyers, advisors and team. Staking rewards and bonuses and so on and so forth. Each of which are extremely important to balance, to ensure the long term health of the overall ecosystem. This is what is referred to as token economics or ‘tokenomics’ for short.

Tokenomics however, are not the only factor to consider when designing a utility token like CUDOS. Afterall, we have to remember that CUDOS is a decentralised computing network, enabling any business or individual to sell their spare computing capacity and for any business or individual, to be able to rent that spare capacity. Some computing tasks will be distributed over a vast number of globally distributed PC’s, servers and other connected devices and so the ability to provide micro-payments is essential to the functionality of the CUDOS network.

There’s also another important factor here: Psychology.

A supplier to the network providing computing power is more likely to be engaged and motivated to continue contributing, if they can see their balance increasing faster. Whilst the value of that work will be the same, whether it is 1xCUDOS at $1 or 10xCUDOS at $0.10, the number at the higher dilution better gamifies the platform. We have seen this via our first product launch, Cudo Miner, where the majority of miners opt to have their earnings displayed in Satoshis when mining BTC or Gwei when mining ETH. The feelgood factor of seeing your balance increase constantly in real-time is extremely compelling.

The total supply numbers below are all from Top 40 projects by market cap, illustrating the wide range used in tokenomic modelling:

In summary, there is no hard and fast rule or right and wrong number to assign as the total token supply. As a team, we consulted heavily with Outlier Ventures and Delphi Digital; two highly experienced and reputable teams within the blockchain industry and tokenomics advisory. The decision to create a total supply of 10 billion CUDOS is specific to our network, factoring in a 10 year release schedule and the network staking target of 75% providing high yields, coupled with the ability to provide micropayments across the network.

To keep up to date on that and all updates regarding the CUDOS token, and to find out more about all the exciting solutions we’re working on, please visit our website and follow us on our social media channels linked below.

Telegram. Twitter .Facebook. Linkedin. Blog.

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