StrongBlock Tokenomics V2
StrongBlock is pleased to present the details of its STRONG governance token allocation and Tokenomics for Version 2 (V2) of the protocol. This new approach includes burning 94% of the original 10,000,000 minted STRONG by December 1, 2020, leaving a maximum supply of approximately 535,000 STRONG.
Token Overview
- Name: Strong
- Symbol: STRONG
- Type: ERC-20
- Decimals: 18
- Token Contract Address: https://etherscan.io/address/0x990f341946a3fdb507ae7e52d17851b87168017c
- Max supply: 528,886 (approximate 94% burn of 10,000,000 minted STRONG by 12/1/2020)
- Current Circulating Supply: 156,592
- Inflation possible? No
- Deflation possible? Yes, but not within the smart contract. Instead, burned tokens are sent to the 00Dead wallet address.
- Current circulation information: https://www.coingecko.com/en/coins/strong
Background
StrongBlock is a blockchain protocol designed to reward and reinforce the world’s expanding blockchain infrastructure. The protocol changes the way blockchain networks reward the nodes that secure them. The STRONG governance token is used to reward node operators running on Ethereum and other supported blockchain protocols.
After considerable community input after the release of V1, the V2 release is a new beginning for STRONG. V2 enhances the flexibility of the protocol to support the mission of strengthening blockchains, while also expanding benefits to the blockchain community through the coming years.
V2 STRONG Allocation
The cornerstone of V2 Tokenomics is a 94% reduction in minted STRONG via an irreversible burn. After the burn, there will be approximately 535,000 STRONG in total. Of these, STRONG will now be allocated as follows.
- 330,365.57 STRONG are for Community rewards for nodes and miners directly supporting the protocol
- 96,784.62 STRONG are for Shareholders of StrongBlock, creators of the StrongBlock DeFi protocol
- 101,735.81 STRONG are for the Team, developers of the protocol
- 0 STRONG is allocated to StrongBlock
As of this writing, 108,422 STRONG have been circulated, including 74,397 STRONG that have mined to date in the protocol, and 4,955 STRONG that have been burned.
Node Rewards
The primary purpose of the StrongBlock DeFi protocol is to reward blockchain nodes. Blockchain nodes transmit, relay and store decentralized blockchain data. Although nodes are crucial to the integrity of their blockchains, not all nodes are rewarded within their own blockchain networks.
With V2, a further emphasis will be placed on increasing the number of Ethereum nodes from hundreds to thousands, and adding support for rewarding thousands of nodes from other protocols, including Bitcoin and Ethereum 2.0.
Lowered Inflation
To keep STRONG circulating through the community, V2 Tokenomics supports a low-inflation model, with rewards primarily generated from node participation. This is opposed to V1 Tokenomics, which was supported solely through an inflationary model.
In V2, rewards may adjust with token valuation in a given period. Deflationary measures will also be used, including burning STRONG in certain transactions.
Governance
A gradual path to decentralization has been determined to be the safest for all blockchain protocols. Holding STRONG will continue to allow governance referenda to be proposed, debated, and voted upon by the community, steadily moving towards decentralization over time. Proposal and voting thresholds for governance referenda will be lowered to reflect the new total amount of STRONG.
In Closing
Strongblock’s revised V2 Tokenomics dramatically reduces total supply and inflation, shifting the project into a model designed for long-term self-sustaining growth. The new reward structure places emphasis on rewarding node operators and liquidity miners, setting the stage for continued expansion of the protocol.
STRONG enables decentralized governance of its community DeFi protocol. STRONG is not a fundraising device or investment opportunity.
Learn more by visiting the StrongBlock website, Twitter, or Telegram.
