PION’s Next Strategic Step: Adjusting Emissions
Augmenting the network’s value and stability through halving token generation
Pion network has been running smoothly for nearly 5 months, and over 15 million tokens have already been minted. It is almost time for the next strategic move in $PION’s streamlined emission schedule: reducing the rate of token creation.
At a superficial glance this may sound like moderated rewards for node operators, but this adjustment is actually designed to ensure the long-term value and stability of our network. Read on for details.
Emission Plan
Before PION’s TGE, an emission/distribution plan was devised for the bootstrapping phase, that is the first twelve months. You can see the details in the table below.
As you can see, PION generation amount is scheduled to be halved twice: at the beginning of the 7th month and the end of the bootstrapping phase. Afterwards, token generation and distribution will be determined by the Pion DAO. More info about the DAO/FED election will be announced later.
In accordance with this emission plan and to focus more on sustainability and long-term value, the $PION generation rate will be reduced by half from April 11th (6 months after the bonPION node-drop on October 14th, 2023).
Advantages of Minting Reduction
The minting plan for the first six months was to guarantee the smooth operation of Pion contracts and to incentivize node operators to upgrade to higher tiers. Now that we are making new partnerships, we should shift our focus from minting tokens to earning fees, which means focusing on long-term value rather than immediate gains. This can have several benefits including the following.
- Increasing Token Scarcity: A reduction in minting rate typically means increased scarcity of the token leading to less sell pressure and higher demand for the token, which can add to its value.
- Lowering Inflation: This strategy results in reducing the Fully Diluted Value (FDV), which can produce lower annual inflation.
- Quality Participation: This shift in focus attracts a more committed community of investors and node operators capable of supporting the network’s long-term development and innovation.
- Enhanced Economic Stability and Sustainability: Depending on fees rather than token generation along with a community who are genuinely invested in the network’s success leads to a self-sustained and stable economic environment.
In short, due to higher overall demand and lower FDV, this strategy is expected to bring about higher value and stability to Pion network and its native token.
More Good News
In addition to these benefits, we have special treats in store for PION holders and node operators.
We are currently developing new specialized protocols such as AI and cross-chain connector, which will offer node-drops. Moreover, projects’ integrating with/launching on Pion generates higher demand for $PION. DeRand, for example, is already promoted by Linea, and will soon be promoted by another famous name in Web3. These yield additional revenue.
These can mean new potential opportunities that $PION holders and node operators committed to Pion’s long-term prosperity will benefit the most from.
Stay tuned for updates of our protocols.
Pion is the Muon ecosystem’s Canary and first mainnet. It is a chain-independent and stateless DON (Decentralized Oracle Network) that enables dApps to make their off-chain components decentralized. By incorporating Pion (by Muon), the manner in which decentralized applications store, process, and access data will be fundamentally transformed.
Run a Pion node.
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