Distribution and Tokenomics
BTSG is the native token of the BitSong network. It is used by the BitSong governance system to vote on blocks and improvement proposals. The amount of BTSGs staked, as well as the duration of the validator’s staking term, determines their voting power on improvement proposals.
BTSG bitsong-mainnet is a Bech32 standard token and is used not only for staking, but also for paying fees and for exchanges between artists and their fans, music providers and investors.
BTSG is the fuel for running BitSong’s entire ecosystem.
Since BitSong was initially created on Ethereum and subsequently migrated to Cosmos, BTSG is a cross-chain token. Indeed, an ERC-20 version of BTSG can be found on Ethereum.
More than 90% (104,973,699 BTSG) of the total initial supply of BTSG (116,420,850) was migrated to the bitsong-mainnet in March 2021, when bitsong-1 was launched. Almost 11.5M BTSG remained in circulation in the Ethereum ecosystem.
Total Initial Supply - 116,420,850 BTSG
Crowdfunding (50%) - 58,210,425 Team (20%) - 23,284,170 Reserve Fund (15%) - 17,463,128 Advisor (7%) - 8,149,460 Marketing & Partnerships (5%) - 5,821,043 Bounty Contest (2%) - 2,328,417 Airdrop Contest (1%) - 1,164,209
BTSG inflation is determined by the amount of bonded BTSG, expressed as a percentage. If the percentage of the total BTSG supply that is bonded goes up, then the inflation rate will decrease accordingly.
Similarly, the reward percentage fluctuates as a function of the inflation rate and the percentage of bonded BTSG.
Put simply, the formula is designed such that, in case the amount of bonded BTSG decreases, participants can earn higher rewards because the inflation parameter increases the amount of newly minted BTSG. The increased rewards will attract more bonded BTSG and in turn, increase network security.
You can view the inflation rate and percentage of bonded BTSG in real time using the BitSong Explorer.
Last modified 1yr ago