Token Supply Evolution
Last updated
Last updated
The total supply of BR23 tokens at Genesis is 100 million, and this may fluctuate depending on the minting or burning of tokens.
To incentivize neuron participation, the SNS generates 2.5% of the total supply annually as voting rewards, which accumulate in participating neurons as maturity. Once a neuron's maturity is disbursed, it is burned, and the corresponding value of BR23 tokens is minted to an account by the SNS ledger. Under exceptional circumstances, the Bridge23 DAO may elect to mint tokens via proposal.
However, the SNS can only burn tokens via a proposal and not through any other means. The Bridge23 DAO has the authority to burn BR23 tokens in order to reduce the total supply as it deems necessary. It is expected that over time, the SNS will be able to increase the rate of token burning until it exceeds the rate of minting from voting rewards, resulting in a decrease in the total supply.
The table and chart below presents a forecast of the overall supply of BR23 tokens over time, based on the following assumptions:
The reward rate is set at 2.5% initially and kept constant over a 12-year period.
The burn rate starts at 0.125% and increases annually by a factor of 1.45 until year 10.
From year 10 onwards, the burn rate of 3% remains fixed.
0
2.50%
3
0.13%
0
100
1
2.50%
3
0.17%
0
102
2
2.50%
3
0.24%
0
105
3
2.50%
3
0.32%
0
107
4
2.50%
3
0.45%
0
109
5
2.50%
3
0.61%
-1
112
6
2.50%
3
0.84%
-1
114
7
2.50%
3
1.16%
-1
116
8
2.50%
3
1.59%
-2
117
9
2.50%
3
2.18%
-3
118
10
2.50%
3
3.00%
-4
119
11
2.50%
3
3.00%
-4
118
12
2.50%
3
3.00%
-4
118