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Burn-Drop is an innovative tokenomics design where 1 Billion IOTX (10% of total supply) will be burned + dropped as we onboard the first 1 million “Powered by IoTeX” devices. Of the 1 Billion IOTX allocated to Burn-Drop, 900M (90%) will be burned and 100M (10%) will be dropped to long-term stakers. This also means the total supply of IOTX will decrease for every newly registered device. Burn-Drop will bring new value to the IoTeX Network in various ways, including:
- Support device builders by covering certification costs
- Incentivize users to adopt “Powered by IoTeX” devices
- Encourage all entities to evangelize IoTeX technology
- Reward long-term stakers and drive value to IOTX coin
Burn-Drop will be facilitated by smart contract and a new Burn-Drop event will be automatically triggered on a daily basis. Burn-Drop will have a total of ten phases with earlier phases having a higher Burn-Drop rate. In Phase 1 (i.e., the first 1,000 devices), a total of 100,000 IOTX will be Burn-Dropped for every new device. In subsequent phases, the Burn-Drop rate will be halved while the number of devices-per-phase will be doubled (i.e., Phase 2 = 2,000 devices @ 50,000 IOTX per device).
After 1 million “Powered by IoTeX” devices are onboarded, Burn-Drop will be finished and “Burn-to-Certify” tokenomics will be activated. From then on, builders (e.g., device manufacturers) will burn IOTX to obtain access to special services/capabilities for each new device. This will continue in perpetuity and the total supply of IOTX will decrease with every new “Powered by IoTeX” device, as shown in the graph below.