As we conclude the first half of the year, the current active circulating supply stands at approximately 833.4 million NOIA tokens, closely aligning with our initial estimate of 830.3 million at the end of H1 2024.
Following the successful launch of Synternet’s mainnet and the upcoming SYNT token bridge to Cosmos on July 29th, Synternet's tokenomics have been updated to align with Cosmos’ industry-standard proof-of-stake consensus mechanism. This model incorporates inflation to reward ecosystem participation effectively.
The move to Cosmos also requires a mandatory migration to the new ERC20 $SYNT token before bridging SYNT to Cosmos. This is needed to ensure a well-controlled, multi-chain token with minimum risks.
Expected SYNT Token Supply for H2 2024
With mainnet launch (June 27th, 2024) and the token bridge event (July 29th, 2024), we are sharing our expected token release schedule six months in advance to account for potential changes in decentralized platform governance decisions within Synternet’s token ecosystem and protocol usage.
Outlined below is the token unlock schedule through December 2024. This schedule includes investor vesting unlocks, unclaimed rewards from the NOIA staking program, the upcoming SYNT staking program on Cosmos, and the SYNT liquidity program on Uniswap.
The schedule also covers general company operation expenses, including employee salaries, marketing expenditures, and various community campaign initiatives. Additionally, it includes allocated treasury inflation for future investments in platform development and growth.
Disclaimer: The token release schedule presented is based on the information available at the time of publication. Exact token allocations may be subject to change.Inflationary Tokenomics and Staking Rewards
Alongside the token release schedule, you will find a detailed forecast of the inflationary tokenomics for the Synternet Blockchain below. Inflation is already accounted for in the above schedule. It is important to note that the majority of the tokens allocated for the treasury will not circulate immediately but will instead be used to position Synternet for long-term growth and sustainable platform development.
Please note that tokenomics and other mechanisms related to the Synternet Blockchain are always subject to change through decentralized governance.
Burn Mechanism
SYNT is integral to the Synternet data economy, serving as the primary currency for paying for data. A smart contract-based burn mechanism ensures that a portion of SYNT tokens are burned whenever they are used for data transactions. This mechanism, set to launch in Q4 2024, will play a crucial role in reducing token circulation and maintaining a supply of approximately 1 billion SYNT. As Synternet's usage increases, more tokens will be burned, effectively decreasing the total supply. Detailed information and exact numbers will be released in the coming weeks.
Maximum Supply
In the ERC20 SYNT smart contract, there is a maximum supply of 2,500,000,000 tokens (compared to NOIA’s 1,000,000,000). This cap is implemented as a security measure because, with Cosmos-native inflationary tokenomics, there must still be a theoretical maximum supply.
With the upcoming bridge to Cosmos, there’s a highly unlikely scenario where all Cosmos token holders simultaneously decide to transfer their SYNT back to Ethereum. Adding already accumulated Cosmos staking rewards to that equation means that more than 1 billion tokens could be bridged to Ethereum. To accommodate this theoretical scenario, our developers and auditors decided to set a maximum supply of 2.5 billion ERC20 SYNT tokens. This cap provides a safe ceiling for all potential scenarios, ensuring security while allowing for potential growth. It’s a sensible limit that we do not expect to reach within our lifetimes.
Questions?
Reach out to our community managers anytime through our Telegram and Discord channels. We are always pleased to hear from you and appreciate all the feedback you provide
