Tokenomics
Utility and Characteristics
Last updated
Utility and Characteristics
Last updated
Ticker: INSTANT Supply: 500 Million (Fixed)
INSTANT is the native token of the Instant AI network, a proof-of-stake blockchain built on the Cosmos SDK. INSTANT is a crucial component of the network and plays a vital role in ensuring its security and operation. INSTANT has three critical functions within the Instant AI ecosystem.
Staking for Proof-of-Stake Consensus: INSTANT can be staked to select validators to secure the network. Validator selection is critical to INSTANT, as it distinguishes Instant AI strategies from conventional asset management. By staking INSTANT, users can help secure the network and earn rewards for doing so.
Gas Fees: INSTANT can be used to pay for gas fees (transaction fees) on the network. Transaction fees paid in INSTANT help to ensure the network runs smoothly. Protocol Governance: INSTANT can be used to create and vote on proposals. By participating in governance, INSTANT holders control key pieces of the protocol. They have the ability to approve new vauls and control the deployment of a large community Treasury.
Overall, INSTANT is an essential component of the Instant AI network, providing the necessary infrastructure for a decentralized and community-driven ecosystem.
While many of these functions are fairly typical for native tokens of proof-of-stake Layer 1’s, INSTANT distinguishes itself thanks to its fixed token supply and non-inflationary staking rewards.
The INSTANT token supply has been set at 500 million tokens to ensure that each participant’s ownership stake in the network remains constant over time. Providing this level of certainty makes it easier for prospective network participants, such as contributors, strategists, partners, and community members, to confidently commit to the Instant AI ecosystem, thereby amplifying its network effects.
Instant AI vaults generate fees of which a portion is directed to INSTANT stakers for securing the network. Therefore, the rate of staking rewards is directly correlated to vault success. As vault fees are collected they are auctioned off for INSTANT which is then distributed to INSTANT stakers as rewards.
As successful vaults generate more fees, more strategists are attracted to build on the platform, creating additional vaults that, in turn, attract more users. The increase in users generates even more fees for INSTANT stakers, further increasing the demand for INSTANT, and making it more valuable for all participants in the Instant AI ecosystem. These network effects are compounded by the fact that the DAO effectively captures the value created by the protocol and its members.
All investor distributions were complete as of August 2023.
