Public Communication: Catapult Tokenomics Proposal
This is a joint message for our community on behalf of the Catapult Migration Committee, comprised of the NEM Foundation, NEM Studios, NEM Ventures and Tech Bureau Holdings
- Japanese: here and, 7.01 , 7.1, 7.3
- Spanish: here.
- Mandarin: Forthcoming
- Italian: here.
In this post we lay out and explain the recommended approach for Catapult Tokenomics. This is a recommendation and has been compiled by the Tokenomics Working group, reviewed by the Migration Committee, Core Team & Super Node Holders group.
A huge thanks go to everyone that has been involved in this process, some of the working group members are named on the proposal, others are not for personal privacy. All are known to the Migration Committee and are long standing, experienced members of the community. Your time, thoughts and efforts are truly appreciated and the result is a well balanced Tokenomics approch we believe.
A similar, but smaller, proposal will be released to cover any changes to the NIS1 Tokenomics as part of Catapult launch, these will be released in due course but it is considered more important to agree the Catapult Tokenomics first to ensure the launch date can be met.
The nature of Tokenomics necessitates some dense information, this post has been compiled to provide some context and guidance for how to absorb the proposal. We welcome any and all feedback, comments, questions, etc from the community.
The proposal broadly splits into the following main components:
Block Rewards - reduce core funds to start the chain with less than 9bn tokens, then use the new Catapult feature (Inflation Mechanism) to re-inflate it back to 9bn via block rewards to harvesters. This will be done by matching the rate that BTC is mined at - without the 4 year cliffs. This gives good rewards in the early years AND a nice easy marketing story about release matching in BTC
Node Harvest Reward - Providing a to the node owner from blocks harvested on their node by contributions from the delegated harvesters, again using a new Catapult feature.
SuperNode program will be phased out over 6 years and made more accessible to the wider community via tiering. It will no longer a large payout but that is offset by the block rewards, it is more of a contribution/thank you towards the cost of running the nodes, supporting the network reliably, locking tokens etc
Two Bonus Opportunities to encourage both early node deployment on catapult and providing node stability on NIS1
You will see that Points 3 and 4 are flagged as optional in the proposal and depending on community response may be kept, altered or removed without major impact on the overall Tokenomics Model. Our recommendation is they are included as documented.
Tokenomics Full Proposal
A Two Page Summary has been produced to help summarise the longer proposal and modelling; it is the best place to start.
The full proposal and spreadsheet models are also provided below:
7.01 NEM Ecosystem Tokenomics - Catapult Proposal 2pg Summary
7.1 NEM Ecosystem Tokenomics - Catapult Proposal
7.2 NEM Ecosystem Tokenomics - Catapult - Inflation and SuperNode Rewards
7.3 NEM Ecosystem Tokenomics - Catapult Future Roadmap Items
Intended Next Steps
The following are the intended next steps for this work:
- Leave this topic open for comments, input, questions etc
- Assuming it is well received, combine the Migration Path and Tokenomics Proposals into a single proposal which goes to PoI vote in mid December
- Create a similar, probably smaller document to this one which outlines suggested changes to NIS1
- Take it through a public vote, probably after Christmas/New Year at this stage.
As always, community input on this proposal is very important and some of these changes are fundamental to the way in which Catapult will work at launch and decades into the future. We encourage everyone to read and engage with the proposal as much as possible!