What is the IOTX token?
The $IOTX coin powers decentralized IoT solutions on the IoTeX blockchain. Its maximum supply is capped at 10 billion, of which 9.44 (94.4%) are already in circulation (as of October 2023).
The IOTX coin is the lifeblood of the IoTeX network, fulfilling multiple functions that are critical to its decentralized architecture. Not only does IOTX facilitate cheap, fast transactions, but it also powers smart contracts and decentralized applications (DApps) on the IoTeX blockchain. The token enables a participatory governance model, allowing holders to stake their IOTX, vote for delegates, and even receive rewards for their contributions to the network’s development.
But the token’s uses don’t stop there. It’s also used to pay transaction gas fees, contribute to network governance, and can even be used to register IoT devices through a staking and burning mechanism. This versatility ensures that a variety of network participants, from delegates and stakeholders to service providers, play a role in maintaining the health and functionality of the network.
The IOTX token distribution is designed to enable long-term stability and growth of the IoTeX network. The project raised 25,000 ETH in a private sale in February 2018, representing 24% of the total supply. Community development received 6% to provide resources for community engagement. The IoTeX team was allocated 15% to align their interests with the success of the project. Ecosystem development accounted for 18% to promote partnerships and collaboration. Roll-DPoS mining received 12% to incentivize network security and efficiency. Finally, 25% was reserved for the foundation to guide the strategic direction and governance of the project. The distribution structure is designed to build a balanced, sustainable ecosystem.
IoTeX's Burn-Drop v2 token economic strategy encourages stakeholder participation and drives network expansion. It involves burning and distributing IOTX tokens to incentivize users to register and use devices. The airdrop of mimo LP tokens is beneficial to long-term stakeholders and ecosystem projects The Burn to Drop ratio is adjusted to 50% Burn, 25% Drop, and 25% Drip, increasing IOTX rewards for stakers. Through decentralized governance, Burn-Drop eligible stakeholders have the power to influence the development of IOTX. The program has destroyed more than 180 million IOTX and issued more than 20 million IOTX to token holders, and is expected to continue to grow.
It is expected that the price of $IOTX will reach a new level in the future.
