8 Things You Should Know About IPX Economics!

Recently, we have announced our listing news on Bithumb and the IPX listing plan has officially reached the first milestone! We want to express great thanks to all community members for your patience and support! And we have prepared some useful info in Q&A to help you know more about IPX Economics.

Q1. How was the project funded if there was no pre sale?

In fact, there was a round of private sale in the communities before listing.

Tachyon Protocol is a project initiated by community. Prior to private sale, this is a community project based on common interests. We continuously receive donations from the community, which can basically cover the initial R & D and labor costs of Tachyon Protocol. If there is no private sale, the project can also follow the established roadmap, but it is undeniable that the progress may be slower in this case due to limited budgets; in addition, the marketing is one of the key factors for the success of a project in the current competitive environment, which requires a lot of investment.

Since we do not adopt ICO to raise funds, we expect to get funded by means of private sale to expand R & D team, accelerate the project landing, and support marketing plan.

Q2. This airdrop via VSYS staking 2.0, how does it work?

IPX Token has joined VSYS Staking 2.0 plan. Details are as follows:

• Total amount: 100 million IPX
• Average daily distribution in total: 136986.30136
• Amount of VSYS Supernodes obtained per day: 136986.30136 / Number of blocks produced by all supernodes * Number of blocks produced by this supernode
• Amount of users obtained: Amount of VSYS coins staked by this user / Total staking amount of the supernode this user belongs to * Amount of this supernode obtained per day * (1-IPX minting commision rate for this node)

For example, it is only used for calculation. The actual situation is subject to actual participation.

• V SYSTEMS produces 1,000 blocks per day.
• Supernode A produces 100 blocks per day, and it has 10,000 staked VSYS coins, and its minting commision rate is 20%.
• Alice has 100 VSYS coins staked at supernode A.

Then the amount of IPX Tokens obtained by Alice per day is 100/10000 * 136986.30136 / 1000 * 100 * (1–20%) = 109.589 IPX

Q3. What is the economic model of IPX?

The initial supply of IPX is 1 billion. In order to encourage more nodes to join Tachyon for network construction and community governance, and ensure decentralization and self-development of the network, we will issue an additional 5% per year to motivate the Provider Nodes for a decade. And the picture shows IPX Allocation details.

Tachyon Market — We will also build a market for trading bandwidth for VPN nodes based on Tachyon network.

1. the user requests VPN traffic from DHT router;
2. DHT router matches the optimal decentralized provider nodes to provide VPN traffic to the user;
3. users and system give IPX Tokens to decentralized provider nodes via smart contracts.

The Value Growth Logic Of IPX Token:

1. The increase of users means that the demand for traffic increases;
2. More traffic provider nodes will be attracted to join the network;
3. The number of Tokens that can be circulated in Tachyon Network is reduced;
4. According to the velocity of money formula: M (money supply) = Q (quantity of goods for sale) * P (price of unit commodity) / V (velocity of currency circulation of the same name) , assuming Q becomes larger; P remains stable; V may become smaller due to increased internal demand for the network and the increased staking demand, then M becomes larger. If the actual increased M in the network does not surpass the demand M, then IPX Token forms relative deflation, and the purchasing power of IPX Token increases.
5. Consistent with the logic of international exchange rate, the demand for Token outside the network increases due to the increased purchasing power of IPX Token, and the actual Token supply decreases, so that IPX Token appreciates against other currencies.

Q4. It is known how many tokens are on the market but how many will hit the market in the first year?

We’d like to be transparent to this information, you can read our token circulating as below:

• Team holds 100 million IPX Tokens, of which 0.4166% will be unlocked each quarter/6 years starting from Tachyon VPN launch;
• Equity investors hold 200 million IPX Tokens, of which 1.666% will be unlocked each quarter for 12 quarters/3 years starting from Tachyon VPN launch;
• There are 300 million IPX Tokens for ecosystem building, of which 7.5% will be unlocked each half-year for 4 half years/2 years starting from Tachyon VPN launch;
• There are 100 million IPX Tokens for VSYS coin staking, which will be unlocked every day equally for 2 years from initial listing, based on VSYS coin staking rules;
• Private investors hold 300 million IPX Tokens, which is fully unlocked starting from initial listing. but most of the investors in this part are committed to stake their token for the Tachyon node program which we will announce to the public later on.

Q5. What is Tachyon Network？

As we know, Tachyon Network is a network consisting of thousands of decentralized provider nodes using Tachyon Protocol. Provider nodes provide traffic for users such as VPN users to get rewards based on their contributions.

Q6. What are the benefits of joining Tachyon Network?

Joining Tachyon Network to become a provider node can get both staking rewards and session rewards.

For the security of Tachyon Network and anti-spam attacks, each node is required to stake IPX to participate in providing traffic mining. The system will give IPX Token to the provider nodes.

Session refers to the transaction that the node provides traffic to the user. Each session reward for a node is different, depending on the price of the session, the total amount of traffic used, and the IPX price.

Provider Nodes Pre-Mining Program will be available soon. We will update you with more details once it is launched.

Q7. How to participate in Tachyon Network? What are the requirements of staking?

For network security and reducing the probability of being attacked, provider node creation needs at least 200,000 IPX to qualify. You can create multiple nodes according to the IPX amount in your address.

The staking amount is an adjustable parameter. With fewer participants in the early stage, higher parameters can be used to increase the costs of the attack. As the number of participants increases, the parameters can be reduced through community voting, so the scalability of the nodes number will be higher in the future.

The initial staking time is set to 7 days, which is conducive to alleviate the concerns of users. With more users participated, it will help the network expansion. At the same time, in a distributed system with a large number of nodes, the fixed costs to launch the attack has not decreased, and the 7-day threshold is enough to make the attacker pay a heavy price.

In order to make up for the opportunity costs of users, the system uses staking scheme to provide fixed rewards to participants, so that participants can get effective incentives.

Q8. How is the current Tachyon Network progressing? What are your plans for the future?

As a decentralized network, the small number of nodes at the initial stage will lead to poor network stability and vulnerability to attacks. Therefore, it is needed to have a certain number of nodes when the network starts, and we will start the Pre-mining program in advance to thank and encourage community members actively participating in Tachyon Network. The Pre-mining program is under test, and we will release it according to the project progress.

Pre-mining rewards come from the system of Tachyon Protocol, that is, a maximum of 5% additional issuances each year, which will last 10 years.

If you have any questions about Tachyon Protocol & IPX, feel free to ask. And welcome to join our AMA in V SYSTEMS telegram community at 10:00 AM EST on 14th December!

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