IOV Token Distribution: At Launch
Following on the long-term distribution model for IOV token, the launch version of the IOV Name Service reward distribution is implemented as follows:
- Validator Reward: it is implemented at launch. Validators will start receiving tokens according to the validator reward calculation. The quality score q is calculated off chain and updated by governance.
- No IOV Name Service Term Deposit: it will be implemented in a following release. Until a deposit reward is distributed, the deposit reward accumulates in the reward account. Early contributors qualify for term deposit from launch date. Their deposited amount is the IOV Tokens that have not left their initial distribution address by the time of deposit reward distribution.
Before the IOV Name Service Term Deposit is implemented, the accumulated tokens in the Reward Account may be distributed by governance with rewards calculated off chain according to the IOV Token distribution methodology.
Once the IOV Name Service Term Deposit is implemented, the accumulated tokens in the Reward Account are distributed automatically and the IOV Name Service Term Deposit is open to more depositors.
At launch, the governance distributes the rewards according to the principles explained in this post according to validator reward and depositor reward formulas. The economic parameters are set at launch, and updatable by governance later.
The guaranteed amount is an amount to be distributed over the first years in the following fashion:
- Each month, the Reward Account receives tokens from IOV Name Service fees. The guaranteed tokens are topping up the Reward Account to a minimum amount of Tokens, so that there is always at least enough tokens in the Reward Account accumulating each month to cover the validator reward and give an incentive to depositors as well.
This guarantees a monthly minimum reward for validators as well as encouraging token holders and encourage the turnover to pick up.