The Itheum protocol is at the forefront of creating the human reputation and data layer for the AI era. Our innovative NFMeID and Liveliness Staking products define the human reputation component, while our unique Data NFT technology powers the data layer. Together, they form the core of Itheum’s mission to empower individuals and organizations in the new AI-driven landscape.
As detailed in our latest light paper, we have realigned token utility to support these flagship products effectively.
With all token vesting now completed and over 55% of the 1 billion ITHEUM tokens in circulation, we’ve identified a need to restore the token’s reputation and align it with the revised tokenomics. This is especially important as we move to realign the token’s utility to the music hyped AI Agent era. A key strategy to achieve this is through a token burn program — a move that will increase scarcity and stabilize tokenomics as protocol usage grows.
Today, we’re excited to announce Phase 1 of our token burn program.
How the Burn Program Was Proposed and Passed
The idea for the token burn program originated within our DAO two months ago, on November 11th, 2024. We invited the community to contribute to the discussion, ensuring alignment with our decentralized governance ethos.
- DAO Discussion Link: https://peerme.io/discuss/exploring-the-role-of-token-scarcity-in-strengthening-ecosystem-value
- Twitter Announcement Link: https://x.com/itheum/status/1859245625201533059
Burn Details
Scope:
- 15% of the ITHEUM max supply will be burned over three months, equating to 150,000,000 ITHEUM tokens. This reduces the max supply from 1 billion to 850 million.
Breakdown:
- Treasury: 7.00% (70,000,000 tokens)
- Team/Advisory: 3.00% (30,000,000 tokens)
- Ecosystem: 2.75% (27,500,000 tokens)
- Community: 2.25% (22,500,000 tokens)
Daily Burn Rate:
- A base daily burn rate of 0.16% (1,666,667 tokens) is applied. However, based on some usage metrics of the protocol, a boosted burn rate of up to 0.33% (3,333,333 tokens) can be applied.
- With the max burn rate, the entire burn process could be completed in 1.5 months instead of 3 months.
This dynamic mechanism empowers the community to actively participate in accelerating the burn by engaging with the Itheum protocol.
How You Can Speed Up the Burn
Community engagement directly influences the burn rate. By using Itheum products across supported chains, you can boost the burn rate and contribute to token scarcity.
MultiversX:
1.Data NFTs:
- Explore and trade Data NFTs: Data NFT Marketplace.
2. NFMe ID with Liveliness Bond:
- Mint or top up NFMe IDs with ITHEUM Liveliness Bonds: NFMe ID. Earn 40% APR staking rewards while contributing to TVL growth.
Solana:
- Music NFTs:
- Get Music NFTs from Drip Channel and use them on NFTunes.
- Trade Music NFTs on Tensor and utilize them on NFTunes.
- The more you listen to music, the more you contribute to the burn.
2. NFMe ID with Liveliness Bond:
- Mint or top-up NFMe IDs: AI Workforce. Earn 40% APR staking rewards while contributing to TVL growth.
How Can You Participate?
The vote is now open, and we invite everyone to cast their votes! Anyone with an NFMe ID can participate, as your voting power is determined by the total $ITHEUM bonded to your NFMe ID.Here’s how to get started:
- Mint Your NFMe ID: Get Started here https://datadex.itheum.io/NFMeID to create your own NFMe ID on MultiversX.
- Bond $ITHEUM Tokens: Bond $ITHEUM to gain voting power. You can also top up your bond anytime to increase your voting strength.
The proposal is live and open for voting for 3 days from its launch.
Cast Your Vote:
Vote on the Token Burn Proposal here: Vote Now.
Together, let’s shape the future of the Itheum ecosystem!
Looking Forward
This initial burn program, shaped and approved through community governance, reflects our unwavering commitment to decentralization and stakeholder involvement. By reducing the ITHEUM supply and enhancing token scarcity, we aim to restore token health and stability. This positions ITHEUM as a robust utility token integral to our mission of building the human reputation and data layer for the AI era.
We intend to monitor the response to the burn program and announce further burns if it is shown to facilitate strong token health.
Together, we’re creating a sustainable ecosystem that ensures long-term value for our community and aligns with the transformative goals of the Itheum protocol.
Let’s burn together for a brighter future!