io.net Introduces Tokenomics Featuring Inflation Model and Burn Mechanism

io.net, a decentralized physical infrastructure network built on the Solana blockchain, has unveiled the tokenomics for its IO token, incorporating an inflation model and a token burn mechanism. The project aims to enhance the ecosystem and provide a robust foundation for economic activities within its network.

The IO token has a total supply cap of 800 million coins, with an initial distribution of 500 million coins at launch. The remaining 300 million coins will be progressively rewarded to suppliers and stakers over a 20-year period, following a disinflationary model. The inflation rate will start at 8% annually and decrease by approximately 1.02% each month, resulting in an estimated 12% reduction per year.

To counterbalance the inflation and create deflationary pressure, io.net will utilize network-generated revenues to buy back and burn IO tokens, thereby reducing the circulating supply. This mechanism is designed to promote scarcity and potentially drive the value of the token over time.

The IO token serves as the native cryptocurrency for the IOG Network, facilitating economic exchanges among various participants within the ecosystem, such as GPU Renters, GPU Owners, and the IO Coin Holder community. GPU Renters utilize the tokens for deploying GPU clusters or cloud gaming, while GPU Owners offer GPU power. IO Coin Holders contribute to network security through staking and earn rewards in return.

Users can transact with IO tokens, USDC, fiat, or other supported tokens, with incentives such as reduced or zero fees for IO token transactions. A 2% fee is applied to USDC payments, while transactions involving IO tokens remain fee-free. Additionally, suppliers earn from compute jobs in USDC with a 2% fee included.

Recently, IO Research, the team behind io.net, secured $30 million in Series A funding led by Hack VC, with participation from key backers including Multicoin Capital, 6th Man Ventures, Solana Ventures, and others. The funding will be utilized to scale the team, meet customer demands, and expedite the network’s development.

With a clear focus on sustainable tokenomics, economic participation, and network growth, io.net aims to establish itself as a prominent player in the decentralized infrastructure space while providing a robust foundation for decentralized economic activities.