Monthly Token Emission Schedule

io.net will release 300 million tokens over 20 years in addition to the 500 million tokens available at launch. The proposed emission schedule simplifies the frequency of disinflation from hourly to monthly while achieving the same total supply target of 800 million tokens.

• Initial Supply at Launch: 500,000,000 tokens
• Total Additional Emissions: 300,000,000 tokens over 20 years
• Final Cap: 800,000,000 tokens
• Disinflation Frequency: Monthly
• Starting Inflation Rate: 8% per year (0.667% per month)
• Disinflation Factor: ~0.989849199 per month
• Disinflation periods: 240 (20 years × 12 months)

The monthly emission schedule follows a disinflationary curve, meaning that the inflation rate decreases over time. It starts at 8% annually and gradually reduces each month until it reaches near-zero inflation at the end of 20 years.

Monthly Emission Schedule

The table below demonstrates the first 12 months of emissions under the proposed schedule:

Visual Representation

Below is a chart illustrating the total supply growth and token emissions for the first 12 months:

Formula for Emissions Calculation

The formula for calculating emissions under the proposed monthly schedule is as follows:

Emissions_T = Total Supply_T-1 × Inflation Rate_T

Where:

• Inflation Rate_T = Inflation Rate_T-1 × (1 - Disinflation Factor)
• Disinflation Factor ≈ 0.010150801 (or 1.01508%)

Initial Inflation Rate

Initial Monthly Inflation Rate = Annual Inflation Rate ÷ Months Per Year
Initial Monthly Inflation Rate = 8% ÷ 12 = 0.667%

Detailed Calculations: First Three Months

Month 1 (July 2024):

The first month’s emissions are based on the initial supply of 500,000,000 tokens and an inflation rate of 0.667%.

Emissions_1 = 500,000,000 × 0.667%
Emissions_1 = 3,333,333.33 tokens

At the end of Month 1:

• Total Supply: 500,000,000 + 3,333,333.33 = 503,333,333.33

Month 2 (August 2024):

The disinflation factor reduces the inflation rate for Month 2:

Inflation Rate_2 = 0.667% × (1 - 0.010150801)
Inflation Rate_2 ≈ 0.660%

The emissions for Month 2 are:

Emissions_2 = 503,333,333.33 × 0.660%
Emissions_2 ≈ 3,299,497.40 tokens

At the end of Month 2:

• Total Supply: 503,333,333.33 + 3,299,497.40 = 506,632,830.73

Month 3 (September 2024):

The inflation rate for Month 3 is further reduced:

Inflation Rate_3 = 0.660% × (1 - 0.010150801)
Inflation Rate_3 ≈ 0.654%

The emissions for Month 3 are:

Emissions_3 = 506,632,830.73 × 0.654%
Emissions_3 ≈ 3,266,003.20 tokens

At the end of Month 3:

• Total Supply: 506,632,830.73 + 3,266,003.20 = 509,898,833.93

Conclusion

The proposed monthly schedule achieves the same emission goal of 300 million tokens over 20 years but simplifies management and calculations compared to the current hourly schedule. By transitioning to monthly emissions:

1. Simplification: Reduces emission frequency from 175,319 hourly epochs to 240 monthly epochs.
2. Accuracy: Maintains the same cumulative disinflation effect over 20 years.
3. Ease of Implementation: Aligns better with monthly financial and operational reporting cycles.