IOST unveils new token economics: 97% of newly issued tokens will go to the community

On 20 December, IOST announced in its official blog post that it has officially launched a strategic token evolution plan in order to establish itself as a Web3 payments infrastructure, which includes the following key components: an enhanced pledge mechanism, community priority distribution, multiple value protection measures, and a growth acceleration pool.

In addition, IOST released a new token economic model with the following highlights:

1. Token allocation is as follows: ① The supply of established IOST tokens will be strategically adjusted: existing circulating supply of approximately 21.32 billion tokens, with a new allocation for growth of 21.32 billion tokens. ② 97% of the newly issued tokens will be used for the community, which includes pledge rewards, eco-growth and merchant incentives; ③ 3% will be reserved for operating costs and team expansion.
2. The distribution of newly issued tokens is as follows: PayPIN node rewards (60%), airdrops and pledge airdrops (20%), PayFi community incentives (8%), community developer grants (5%), Nexus DAO (4%), and team (3%).
3. Token Destruction Mechanism: Four interrelated token destruction mechanisms have been implemented, including: transaction fee destruction, node MEV destruction, ecology-based destruction, and DAO governance mechanism destruction. The combination of the four destruction mechanisms is expected to result in significant deflation as network adoption grows, with total annual destruction projected to be approximately $8 million by the end of 2025.