Nexi tokenomics: General overview

The Nexi token has a total supply of 10 billion tokens, which are distributed as follows: 35% for the strategic reserve (to be locked), 25% for the ecosystem treasury, 25% for staking rewards (on-chain), 10% for partners and backers and 5% for the team and advisors. The team and advisory board tokens are being locked up for at least six months to prevent dumping and manipulating the market.

The Nexi token has an internal deflationary model, whereby a percentage of every transaction is burned, reducing the token supply over time. The burn rate starts at 1%, and it decreases by 0.1% every year, reaching a minimum of 0.5% in the fifth year. This mechanism ensures that the token’s value appreciates over time as the supply decreases.

Staking Delegation

One of the primary use-cases of the Nexi token is staking delegation. Staking delegation involves delegating your tokens to a validator node that verifies transactions on the Nexi Chain network. Validators are incentivized to maintain the network’s security and stability by earning rewards for validating transactions. Stakers, on the other hand, earn a percentage of the validator’s rewards for delegating their tokens. Staking delegation is a passive income stream that encourages token holders to hold onto their tokens, creating demand and reducing the token supply.

Rewards Inclusion

The Nexi token is used to incentivize users to participate in the network by rewarding them for various activities such as referring new users, creating content, and participating in community events. The rewards are paid out in Nexi tokens, creating demand and increasing the token’s value. The rewards program is designed to distribute tokens to the community while also increasing the token’s utility.

Smart Contracts Development

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The Nexi token is used to pay for gas fees, which are the fees required to execute smart contracts on the Nexi Chain network. Smart contract developers are incentivized to create innovative applications on the Nexi Chain network by earning Nexi tokens for their work. The more smart contracts that are developed on the Nexi Chain network, the more utility the Nexi token has, increasing its value.

Cross-chain Liquidity

The Nexi Chain network is interoperable and interconnected with other EVM networks, allowing for the seamless transfer of assets across different networks. The Nexi token is used as a bridge asset, providing liquidity between different blockchain networks. The more liquidity the Nexi token has, the more valuable it becomes, as it becomes more accessible to a wider audience.