Emission Plan
Economic model
The emission plan for the Stream Token (STRM) is a crucial aspect of the Stream Protocol's economic model. It outlines the distribution of new Stream tokens into circulation over time, defining how new tokens are minted and distributed to various stakeholders within the Stream Protocol ecosystem. The emission plan is designed to achieve specific goals, such as incentivizing participation, promoting liquidity, and supporting the growth of the StreamPayments™ platform.
The specific details of the Stream Protocol´s emission plan, including the total token supply, initial token distribution, token release schedule, and allocation to different stakeholders, may vary based on the protocol's requirements and objectives. Emission plan include the following components:
Total Token Supply: The emission plan begins with determining the total token supply, which represents the maximum number of tokens that will ever be created. This value is usually fixed and specified in the protocol's smart contract.
Initial Token Distribution: The initial token distribution involves the allocation of tokens to the core team, early investors, advisors, and other stakeholders who contributed to the project's development and funding. This allocation sets the foundation for the Stream Token distribution.
Token Release Schedule: The Stream Protocol´s emission plan includes a Stream Token release schedule, which determines the timing and frequency of new tokens entering circulation. Token releases can be linear, logarithmic, or follow other predetermined patterns.
Inflation Rate: The emission plan defines the inflation rate, which determines the annual increase in the STRM token supply. A lower inflation rate may be used to promote scarcity and value appreciation, while a higher rate may encourage token circulation and usage.
Staking and Rewards: The emission plan may allocate a portion of newly minted tokens as staking rewards. Staking allows STRM token holders to lock their tokens in the protocol's staking mechanism and earn rewards for participating in network security and governance.
Community Incentives: To incentivize community participation and engagement, the emission plan may include allocations for community grants, liquidity mining programs, or other reward mechanisms.
Vesting and Lockup: Some STRM token allocations, especially those for the core team and advisors, may be subject to vesting schedules or lockup periods to ensure long-term commitment and alignment of interests.
Governance Mechanism: The emission plan incorporate a governance mechanism that allows STRM token holders to vote on proposed changes to the emission schedule, inflation rate, or other economic parameters.
It's essential to strike a balance in the Stream Protocol´s emission plan to align the interests of various stakeholders, encourage network participation, and achieve the project's long-term sustainability and growth. A well-designed emission plan can contribute to the success and adoption of the Stream Protocol and its associated products, like StreamPay™ and StreamPayments™, by creating a thriving and sustainable ecosystem.
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