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Key Principles

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Fixed Maximum Supply:

The total supply of $IO is capped at 800 million coins.
  • 500 million $IO will be distributed at launch.
  • The remaining 300 million $IO will be emitted as hourly rewards to Suppliers and their Stakers over time.

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Hourly Rewards:

Rewards are distributed hourly to Suppliers and their Stakers over 20 years following a disinflationary model:
  • Starts at 8% annual inflation in year 1.
  • Decreases by 1.02% monthly (/~12% per year) until the cap of 800 million $IO is reached.
Charts detail the emission rates, annual inflation, and the distribution of emitted vs. remaining coins.
Figure 1. Emission rate as a function of total emissions pool.
Figure 2 Year Inflation Rate
Figure 3: Coins already emitted by year versus remaining Coins to be emitted.

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Burn Mechanism:

$IO employs a programmatic coin burn system:
  • Revenues from the IOG Network are used to purchase and burn $IO.
  • The burn amount is adjusted dynamically based on $IO’s price, reducing supply and creating deflationary pressure.

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Revenue Streams and Fee Structure

io.net generates revenue through fees charged to both Users (Renters) and Suppliers: GPU Renter Fees
  • Reservation Fee:
    • 0.25% of the total compute reservation cost is added to the Renter’s cost.
  • Payment Fee:
    • 2% fee for payments made in 100% USDC.
    • No fees for payments made in 100% $IO.
GPU Supplier Fees
  • Reservation Fee:
    • 0.25% fee on the total reservation cost, charged to the Supplier upon payment for compute.
  • Payment Fee:
    • 2% fee for payments in 100% USDC.
    • No fees for payments in 100% $IO.

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Summary of Tokenomics Features

  • Fixed Supply: Capped at 800 million $IO.
  • Hourly Rewards: Emitted to Suppliers and Stakers over 20 years with decreasing inflation.
  • Burn Mechanism: Reduces supply via programmatic burns funded by network revenue.
These mechanisms ensure a balanced and sustainable ecosystem for $IO.