Itheum 101: ITHEUM Tokenomics
ITHEUM is the primary utility token of the Itheum ecosystem. It currently exists on the Elrond blockchain and is required to unlock platform features within the decentralized Data DEX and Data Metaverse core products.
Today, we’re going to break down ITHEUM’s tokenomics to provide you with a better understanding of its metrics and how it’s used. For additional details and information, you can refer to our whitepaper.
#1 Access Rights to Data
Once a transfer of ITHEUM is completed, Data Creators can allow Data Consumers to access their datasets. The goal of such a transaction would be to act as evidence of access rights being granted to a third party (Data Consumer) and to trace the lineage of data access. The tokens act as a “key” to gain access to data within the Itheum ecosystem.
#2 Voting Rights
ITHEUM stakers will get voting rights in the Itheum Foundation DAO, which votes on proposals relating to how the ITHEUM treasury will be spent towards the roadmap and community development.
Learn more about how this will work by reading the Decentralized Governance section of our whitepaper.
#3 Data Coalition DAO Management
Data Coalition DAOs can be set up by anyone to enable governance-backed bulk trading of data. Token holders can stake or bond their ITHEUM to create a new DAO and partake in its operations and governance. Participants who stake with a DAO are eligible to receive voting rights in return for managing the operations of the DAO (such as deciding on which data can be traded and with whom, the pricing of data, and to adjust key parameters of the DAO).
Stakers also receive a relative share of the bulk trade earnings. The staked ITHEUM goes into the “DC Fund Pool,” utilized in dispute resolution and arbitration of contentious data trade events. Examples of such contentious data trade events are: A Data Consumer who makes a claim against bad data quality at certain periods of the trade window or if multiple Data Creators withdraw the access rights to their data after payment was made for its use.
The ITHEUM token is an ESDT (Elrond Standard Digital token) and has a total supply of 1,000,000,000. The allocation/distribution details are below:
Explanation of the Cliff / Vest / Unlock process:
- Cliff: The period when tokens are fully locked.
- Vest: After the cliff is over, then the tokens can be claimed. The claimable tokens are then allocated at a fixed schedule over time — this is called a vesting schedule.
- Unlock: The vested/allocated tokens then unlock at certain points. This is when the token holder can get access to their vested tokens.
Let’s consider the following example:
Private Sale: 20% of max supply : V:24m / U:3m : TGE unlock 5%
- Receive 5% of their tokens at the token generation event (TGE), which occurred on March 28, 2022.
- The remaining 95% of their tokens are released progressively over a vesting period of 24 months (V:24m).
- During the 24-month vesting period, investors will be able to get access to their tokens in 3 months blocks — this is called the unlock period (U:3m). The **1st unlock date for the investors will be June 28, 2022.**
- June 28, 2022 (start)
- Sep 28, 2022
- Dec 28, 2022
- Mar 28, 2023
- Jun 28, 2023
- Sep 28, 2023
- Dec 28, 2023
- March 28, 2024 (end)
Why did Itheum design the token distribution schedule this way?
- Itheum needs a long-term commitment from our supporters and this assures we get this from the team, investors, and advisors.
- ITHEUM is a utility token that is used to “price” the access to data, effectively setting a “value” for data. To ensure there is steady long-term growth and stability for the utility token, we need to balance token supply and demand. We also need to ensure that there is a predictable injection of new token supply into the market. This is why we put in place the “3-month” unlock mechanism that applies after the cliff and vest dates pass.
The above image provides details on the ITHEUM token’s metrics, also outlined below:
- Initial Circulating Supply: 166,250,000
- Private Raise Amount: $4 million
- Private Token Price: $0.02
- Public Raise Amount: $2 million
- Public Token Price: $0.04