The EmpowerChain tokenomics are designed to make the native network utility token, $MPWR, a useful asset for all participants in the EmpowerChain ecosystem. This is important for long-term development and maintenance, as well as to ensure that the token is a viable incentive for actors in the waste sector to participate.
Disclaimer: The tokenomics are subject to change through governance, but the following is presented as the initial plan for the tokenomics.
EmpowerChain uses a native network utility token called $MPWR (pronounced "empower").
The $MPWR token is used for:
- Network security (validation and staking)
- Paying for transaction fees
- Paying for services and usage fees on different applications
Supply at genesis is 200,000,000 $MPWR tokens, with a maximum supply of 1,000,000,000 $MPWR tokens to be reached over 12 years.
The initial distribution of $MPWR tokens is designed to ensure that the network has long-term sustainability and firepower to incentivize users and actors in both the web3 and waste sector world.
More details on the initial distribution can be found in the Initial token distribution document.
The emission schedule is simply: linear emission over 12 years, starting at 200,000,000 $MPWR tokens and ending at 1,000,000,000 $MPWR tokens. This means that the number of tokens emitted per year is 66,666,666.
The emission curve, or supply increase percentage, looks like this:
Emission distribution (or: block rewards)
At launch, the block rewards will simply be 75% to stakers and 25% to the community pool - with the community pool being a placeholder for the tokens to be distributed (if governance decides to do so) to the different purposes outlaid in the final block reward plan:
Once we have implemented the final block rewards, they will focus on the following areas:
- Incentivizing stakers
- Incentivizing usage of the network
- Incentivizing development of the network
- Support physical infrastructure development in the waste sector
Together, they are designed to ensure that the network has long-term sustainability and incentives for all stakeholders in the network.
More details on the final block rewards will be published before launch.
To read more details about the emission distribution, see Emission distribution.
The big question for any blockchain is how it will operate sustainably in the long term. The EmpowerChain network token is a utility token and is needed to use the network. It is needed not only for gas fees, but also for:
- Usage fees for dApps
- Plastic Credit issuance fees
- Marketplace fees
- And other fees from using the network in different ways
- Participating/voting in governance
The utility of the MPWR token, and its demand, will be driven by the usage of the network. The plan is to keep building the network and its offerings to ensure that the token is useful and in demand.