Announcement: $CAPS burn program (Tokenomics update)

Almost 3 years have elapsed since Ternoa’s white paper and token economics were designed.

With a 2,5b $CAPS fixed supply, $Ternoa was the first Nominated Proof-of-Stake L1 infrastructure boasting a non-inflationary native coin. Our goal was to challenge prevalent models existing in the infrastructure space, and push further the limits of token economics, while adding value simple yet effective valuation fundamentals for holders.

2023 was the year during which we’ve completed our initial roadmap, with the launch of Secret Nodes & clusters enabling the creation on mainnet of long touted Secret and Capsule NFTs: The first fully decentralized, trustless and open source private content management system on-chain.

As theoretical concepts became reality, our teams managed to make several optimizations through fine tuning of both architecture and hardware requirements.

By doing so, we have created room for improvement on Secret Nodes’ token economics. As a result, the governance decided to reflect this directly in our tokenomics, to the benefit of $CAPS holders, with a first $CAPS burn program.

$CAPS burn program #1

As part of this first burn program, starting Oct. 1st 2023, a total of c. $400 000 worth of CAPS will be burned going forward.

The amount of CAPS burned every month is going to be based on the volume of NFT transaction fees paid on the network.

With this mechanism, we intend to leverage $CAPS burns to help foster network growth and transactions on the chain.

This program will be followed by subsequent burn programs, which timing will depend upon factors such as blockchain transactions growth, hardware cost evolution, network decentralization pace, etc.

Terms & Conditions

For each calendar month, the following amount of $CAPS shall be burned, based on previous month chain activity:

• 100% of NFT transaction fees paid on-chain
• Minimum 1 000 000 $CAPS
• Maximum 5 000 000 $CAPS

Burns will occur in the first days of the following month, and they will be announced on our social media accounts. As such, the first burn will happen in early October, for the month of September 2023.

This program will be in place up until 25 m$ CAPS have been burned, or a new burn program is implemented.

A token burn on a non-inflationary coin supply is not a common feat, and maybe a worldwide first. This is a bold decision we are making to show to our community of holders and signal to markets that the team is firmly committed to ensure Ternoa’s tokenomics are healthy, and competitive in the crowded space of blockchain infrastructures.

Make sure you follow our social media accounts to keep in touch with updates our $CAPS burn programs and strategy.

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