IO Tokenomics

Key Principles

Fixed Maximum Supply:

The total supply of $IO is capped at 800 million coins.

• 500 million $IO will be distributed at launch.
• The remaining 300 million $IO will be emitted as hourly rewards to Suppliers and their Stakers over time.

Hourly Rewards:

Rewards are distributed hourly to Suppliers and their Stakers over 20 years following a disinflationary model:

• Starts at 8% annual inflation in year 1.
• Decreases by 1.02% monthly (~12% per year) until the cap of 800 million $IO is reached.

Charts detail the emission rates, annual inflation, and the distribution of emitted vs. remaining coins.

Figure 1. Emission rate as a function of total emissions pool.

Figure 2 Year Inflation Rate

Figure 3: Coins already emitted by year versus remaining Coins to be emitted.

Burn Mechanism:

$IO employs a programmatic coin burn system:

• Revenues from the IOG Network are used to purchase and burn $IO.
• The burn amount is adjusted dynamically based on $IO's price, reducing supply and creating deflationary pressure.

Revenue Streams and Fee Structure

io.net generates revenue through fees charged to both Users (Renters) and Suppliers:

GPU Renter Fees

• Reservation Fee:
  • 0.25% of the total compute reservation cost is added to the Renter's cost.
• Payment Fee:
  • 2% fee for payments made in 100% USDC.
  • No fees for payments made in 100% $IO.

GPU Supplier Fees

• Reservation Fee:
  • 0.25% fee on the total reservation cost, charged to the Supplier upon payment for compute.
• Payment Fee:
  • 2% fee for payments in 100% USDC.
  • No fees for payments in 100% $IO.

Summary of Tokenomics Features

• Fixed Supply: Capped at 800 million $IO.
• Hourly Rewards: Emitted to Suppliers and Stakers over 20 years with decreasing inflation.
• Burn Mechanism: Reduces supply via programmatic burns funded by network revenue.

These mechanisms ensure a balanced and sustainable ecosystem for $IO.