8 docs tagged with "Tokenomics"

The IOTA gas-pricing mechanism achieves two outcomes:

The native asset on IOTA is called IOTA.

Tokenomics refers to the various concepts that shape the science and behavior of blockchain economies. In basic terms, tokenomics is the financial foundation of blockchains. Much the same way a building with a poor foundation is doomed to fail, a blockchain without a well-researched, extensively planned, and painstakingly implemented token economy eventually crumbles.

The IOTA platform relies on delegated proof-of-stake (DPoS) to determine the set of validators that process transactions.

IOTA uses a Delegated Proof-of-Stake (DPoS) system, where validators get their

Staking and unstaking IOTA with validators earns a percentage of rewards they receive from gas fees.

An IOTA transaction must both pay for the computational cost of execution and pay a deposit for storing the objects a transaction creates or mutates.

Each IOTA validator maintains its own staking pool to track the amount of stake and to compound staking rewards. Validator pools operate together with a time series of exchange rates that are computed at each epoch boundary. These exchange rates determine the amount of IOTA tokens that each past IOTA staker can withdraw in the future. Importantly, the exchange rates increase as more rewards are deposited into a staking pool and the longer an amount of IOTA is deposited in a staking pool, the more rewards it will accrue.