Crypto

Mina protocol: diving into the tokenomics of the MINA token – journal du coin

Min’s Protocol is one of the most interesting new generation blockchains. After presenting his technical innovation based on SNARK data, its decentralized applications and his development environment, let’s take a closer look at its token!

IN native token Mina protocol is MINA… This utility token is used to reward network players who protect it with a bet confirmation (rate), and buy the evidence obtained dodgers… It is also a cryptocurrency for exchanging value on the blockchain.

This article is brought to you as part of an educational communication campaign and is supported by the Mina Protocol.

MINA token inflation

IN MINA is an inflationary : so there is no limit on the number of tokens that can be generated. The distribution model should maximize the participation of token holders in rate in the early years of development. We remind you that no chopping – mechanism for preventing attacks such as nothing is at stake… Thus, any MINA token holder can “place bets” (or delegate them) without risking losing them and avoiding dilution.

1,000,000,000 MINA will be distributed from the launch of the mainnet. Tokens match with unlocking period of 8 years : entry into circulation is gradual.

Change in the number of MINA in circulation during the 8 years of initial distribution.

First, block reward inflation will be 12% for accounts locked… However, for accounts liquids, block rewards doubled in 15 months… These “inflated awards“Strive to build loyalty among token holders so that they remain loyal to the ecosystem. Then the protocol targets inflation rate future 7%as soon as all tokens are released.

Mina Protocol - inflation target
Inflation development over time.

It is also important to note that community MINA token holders can regulate inflation, up or down, if she so desires.

Progressive token unlocking

From periods progressive unlock, the number of tokens in circulation is initially small, then it increases over time.

MINA token - Token circulation calendar
Change in the number of MINA in circulation over time for each type of holder.

Within this circulating supply, we can divide tokens into two groups. Those who come from the genesis block form original position (805 385 694 MIN). Therefore, they are created from the very beginning, and the period for unlocking them depends on the type of holder. The rest of the tokens will come from inflation, i.e. block rewards.

The tokens to be “delivered” by their holders constitute supplyEverything MINA can be bet regardless of whether they are locked or not. IN supply hence, it increases depending on the block reward.

Distribution of MINA tokens

At the beginning of the initial distribution here distribution of MINA tokens between different holders :

  • Meena Foundation: 6% ;
  • O (1) laboratories: 7.5% ;
  • Donors: 20.5% ;
  • Major contributors : 23.6% ;
  • Community: 42.3%
Mina Protocol - MINA Token - Distribution

After four years of network deployment, here is projection MINA distributions:

Placement of MINA in circulation after 4 years of use. Block rewards will account for nearly a third of the amount of MINA in circulation.

Therefore, the initial distribution phase is programmed to maximize economic incentives various network participants. Let’s figure out the details.

Mina Community

The Mina Protocol community is made up of different types of actors.

Genesis members (pre-mainnet)

Of course, those who supported the project from the very beginning and actively participated in its development have a prestigious status. Indeed, through their participation and their qualifications, they have ensured a strong decentralization of the network since the launch of the main network. Whether it’s node operators, developers, contributors who wrote the documentation, reported bugs, these 663 participants in the Genesis program distributed in 59 countries therefore valuable to the MINA community. They are awarded directly with grants that amount to 4.3% MINA from the initial distribution. These tokens are unlocked at 4 years

Individual investors

Participants public sale Mina tokens (organized on Coinlist), meanwhile, has a very short blocking period (40 days). It ended on June 1. These tokens represent 7.5% original distribution.

Grants awarded to projects developed at Mina

Grants to developers who improve the protocol or code binding are under the control of the Foundation. They come with an unlock period 4 years

IN inflated awards

Awards rate doubles for block producers who “hold” unlocked tokens for 15 months… This encourages them to remain faithful to the project. These tokens make up 4.6% original distribution.

Members of Genesis (post-main network)

In continuity Genesis program, The Foundation intends to award the greatest skilled communities after the launch of the mainnet. However, these grants will require membership the whole community. The foundation plans to install the mechanism from here. 9 months through hard fork… These tokens will represent 8.8% initial distribution and will have a release period 4 years

SNARK Evidence Producers

Of course, these actors are of prime importance to the network as they produce cryptographic evidence allowing the blockchain to have corrected size… As you probably already know if you read the first article on the Mina protocol, these dodgers sell your proof to block producers.

However, the Foundation decided to provide them with additional reward… This income will be directly provided by the protocol, and dodgers win even if they don’t sell their evidence. This very incentive mechanism has not yet been put in place. Therefore, it will be implemented through hard fork in delay 3 to 6 months after starting the main network. These tokens represent 6% the original distribution and will not be blocked. Then the fund provides for a period 4 years during which these awards will be distributed.

Mina Foundation

IN foundation non-profit and independent. Its board of directors includes the CEO of O (1) Labs, Evan Shapiro… Many personalities from the cryptosphere, such as the former director of the ZCash foundation, Josh Cincinnati or main developer from Tendermint Tess Rinearson are also part of it.

Therefore, the Mina Foundation is committed to supporting the network active as well as decentralizedas well as improving the protocol through grant programs. The allocation of funds will be fully transparent… IN 6% tokens provided for this purpose are released 20% from the launch of the network, and the remainder will be released 6 months after the launch of the main network within 3 and a half years

O (1) Laboratories

Mina Protocol creators will focus on tool development for Snapps developers. The team also plans to attract and recruit talent. So, 7.5% tokens are returned to them, which are released within 4 years since the launch of the main network.

IN sponsors

Mina Protocol: investment rounds
History of different investment rounds.

In three years of development of the Mina protocol, O (1) Labs received financial support from 46 famous institutional players… So they have the right 20.52% initial distribution in proportion to their investments. In order not to centralize funds, none of these investors own more than 3.3% of the original distribution, and only 7 of them exceed the percentage. These tokens have an unlocking period 18 months… As for individual investors, this started 40 days after the creation of the main network.

Major contributors

These 30 employees having worked full time on the genesis of the project over the past three years. These engineers as well as cryptographers highly skilled professionals are working to continually improve the protocol and create tools for snapp developers. They benefit from 23.6% original distribution. Grants are distributed across 4 years and will begin one year after each member joins O (1) Labs. In addition to these grants, some of the tokens come with a two-year unlock period once connected to the main network.

Conclusion

IN listing MINA token took place on June 1. Many platforms offer this: Coinlist Pro of course, since there was a public sale organized there, but also Kraken, Gate.io, OKEx

The tokenomics of MINA tokens are certainly complex, but very interesting to learn. O (1) Labs chose an inflationary model, combined with multiple incentive mechanisms, to keep network members. The periods for gradually unlocking tokens are the same. This initial distribution, which takes place over eight years, shows that everything was thought out to ensure that Mina Protocol members are committed to the project in a sustainable manner. Therefore, we look forward to the first snapshots, of these decentralized applications that include SNARK proofs, which should provide valuable tools to protect our privacy and personal data.

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