PRV token information & economics (tokenomic)

Token Name/Symbol: Privacy/PRV

Primary use case:

Privacy (PRV) is the bloodline of the protocol. It coordinates the most important activities of the network.

  • People stake PRV to earn block rewards and transaction fees.
  • People pay transaction fees in PRV to send coins privately.
  • Developers pay transaction fees in PRV to issue their own privacy tokens.

At a later date, people will be able to participate in on-chain governance by staking PRV to vote on protocol updates and community fund governance (ETA 2021).

Total supply:

100,000,000 PRV

Block Reward Split:

95% of PRV total supply is minted through block rewards. Block rewards are split between the validators and Incognito DAO, a decentralized autonomous organization designed to fund protocol development and network growth. Incognito DAO collects a gradually reducing percentage of the block rewards, from 10% to 3%.

With this income, Incognito DAO will fuel the growth of the network, fund interesting projects, and give the project longevity.

Incognito DAO’s funds are initially managed by the Core Development Team. Management responsibilities will be gradually distributed to the community.

Year Validators Incognito DAO
1 90% 10%
2 91% 9%
3 92% 8%
4 93% 7%
5 94% 6%
6 95% 5%
7 96% 4%
8+ 97% 3%

Lockups:

Incognito uses a different funding model.

  • The core team bought 5M PRV (at $0.20 per token) in May 2018, with $1M of their own money. This funded the project until the mainnet launch (November 2019).

  • Instead of granting tokens and locking them up, the tokens purchased by the core team will be distributed through the block reward split over 5 years. So as not to curtail network growth, the core team will not receive the full 5M PRV immediately. 5M PRV will be paid over 5 years (1M PRV per year). This is designed to ensure that PDG funds are sufficient to fuel network growth over the first 5 years.

Date Amount (PRV)
December 31, 2020 1,000,000
December 31, 2021 1,000,000
December 31, 2022 1,000,000
December 31, 2023 1,000,000
December 31, 2024 1,000,000
2 Likes

So, for “current supply” calculations, the 5M should not be taken into account?
The 5M are provided as “coupons”, the team will be able to redeem at the above-listed dates.

Does this mean that current supply is just:
number of blocks * 1.386666 PRV (with an adjustment of 9% every year)

1 Like

Hi @Jamie, somehow missed your comment :sweat_smile:

“current supply” = “circulation supply”, all existed tokens should be included in the calculation, unless the tokens are frozen or locked by smart-contracts.


So the correct calculation one will be Premine + number of blocks * 1.386666 PRV

The same, to see a big picture you should keep in mind calculations:

  • how many tokens are staked in Nodes
  • how many are in staking pools
  • how many tokens are staked in pDEX liquidity
3 Likes

Okay, I thought current supply to be all PRV (pre)mined until now. Thanks.

2 Likes