Chiliz Chain Introduces Tokenomics 2.0 to Enhance Utility and Longevity
The Chiliz Chain, a blockchain protocol for sports and entertainment, has recently launched its Tokenomics 2.0. This update brings significant changes to the economic strategy of its native digital currency, $CHZ, as the blockchain enters its second year of operation.
Detailed Inflationary Framework
The updated tokenomics, implemented at the beginning of 2024, introduces an initial annual base inflation rate of 8.80%. This inflation rate will gradually decrease over time according to a specific formula, reaching a stabilization point of 1.88% in the 14th year. If the burn rate of transaction fees exceeds the annual inflation rate, the token’s supply will shift towards a deflationary model.
Allocation and Utility Enhancement
In terms of allocation, 65% of the inflation supply is designated for validators and delegators, providing significant rewards for those involved in network governance and security. An additional 10% is allocated to the Community Vault, $CHZ Liquidity Pools, and Shared Security Restaking Rewards. The remaining 25% is directed towards Ecosystem and Operational Distribution to support continuous development and ecosystem projects.
Strategic Implications
The introduction of Tokenomics 2.0 aims to foster sustainable growth and enhance the utility of the $CHZ token. By aligning with leading Layer 1 protocols’ economic strategies, the Chiliz Chain positions itself for increased community engagement and long-term viability within the competitive blockchain industry.
Furthermore, with the implementation of EIP-1559, a significant portion of gas fees will be burned at the protocol level. This could potentially lead to a deflationary supply model in the future.
🔥 Hot Take: Chiliz Chain’s Tokenomics 2.0 Boosts Utility and Longevity 🔥
Chiliz Chain introduces Tokenomics 2.0, enhancing utility and blockchain longevity with an 8.80% base rate and token burn mechanism, aiming for a minimum annual yield of 5.72% APY.
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