Tokenomics
Tokenomics
INK Protocol implements a deflationary economic system designed to balance ecosystem growth with sustainable value creation. The $INK token serves as both a utility token powering all protocol operations and a governance token directing the ecosystem's evolution. The protocol's unique spiral deflation mechanism ensures that increased usage directly translates to enhanced token scarcity, creating a self-reinforcing economic engine that drives long-term value for all participants.
$INK Token Basic Information
Token Name: INK
Total Supply: 210,000,000 $INK (Fixed supply)
Decimals: 18
Deflationary Mechanism: Systematic burning across multiple protocol operations
Token Distribution
TGE Liquidity & Airdrop
6.3M $INK
3%
100% at TGE
Immediate
Exchange liquidity, Community airdrops
Angel Round
10.5M $INK
5%
None
12-month lock + 24-month linear
Long-term strategic support
Private Sale
21M $INK
10%
None
6-month lock + 18-month linear
Strategic institutional funding
Team & Advisors
31.5M $INK
15%
None
18-month lock + 36-month linear
Team incentives, Expert compensation
Ecosystem Development
56.7M $INK
27%
None
20% permanent lock + 10-year linear
Developer grants, Cross-chain tools
Swap Liquidity Pool
21M $INK
10%
Staged release
Based on milestones
Protocol-controlled liquidity
Launchpool Mining
25.2M $INK
12%
None
Activity-based release
Ecosystem growth incentives
Strategic Partnership
16.8M $INK
8%
None
5-year linear
Protocol integrations, Exchange listings
DAO Treasury
21M $INK
10%
None
DAO managed
Safety reserve, Market operations
Detailed Allocations
TGE Liquidity & Airdrop: 3% (6.3M $INK)
Purpose: Establish initial trading liquidity and reward early community
Release mechanism:
100% available at Token Generation Event
Allocations:
Exchange market-making
Community airdrops and early adoption incentives
Initial liquidity provision
Angel Round: 5% (10.5M $INK)
Purpose: Early strategic supporter compensation
Release mechanism:
12-month lock period
24-month linear vesting after lock
Key provisions:
Long-term aligned supporters
Strategic guidance and resources
Network expansion assistance
Private Sale: 10% (21M $INK)
Purpose: Strategic institutional funding
Release mechanism:
6-month lock period
18-month linear vesting after lock
Focus areas:
Institutional investors
Strategic capital partners
Industry experts and influencers
Team & Advisors: 15% (31.5M $INK)
Purpose: Team incentivization and expert compensation
Release mechanism:
18-month lock period
36-month linear vesting after lock
Performance-based acceleration: 20% accelerated unlock when protocol TVL reaches $500M
Allocations:
Core development team
Technical advisors
Strategic consultants
Ecosystem Development: 27% (56.7M $INK)
Purpose: Sustainable protocol growth and ecosystem expansion
Release mechanism:
20% permanently locked
Remaining 80% released over 10 years
Focused investments:
Inscription developer grants
Cross-chain tooling development
Educational content and documentation
DAO community initiatives and contributions
Swap Liquidity Pool: 10% (21M $INK)
Purpose: Protocol-controlled liquidity for sustainable trading environment
Milestone-based release:
40% released at mainnet launch
30% released at cross-chain bridge activation
30% released when TVL reaches $100M
Strategic liquidity deployment across:
Multiple DEXs
Various chain environments
Key trading pairs
Launchpool Mining: 12% (25.2M $INK)
Purpose: Protocol adoption incentives and ecosystem growth
Activity-based distribution:
30% for new inscription project airdrops
50% for user transaction mining rewards
20% for governance participation incentives
Implementation:
Automatic distribution based on on-chain activity
Transparent allocation formula
Community-visible distribution dashboard
Strategic Partnership: 8% (16.8M $INK)
Purpose: Ecosystem expansion and strategic relationships
Release mechanism:
5-year linear vesting
Targeted allocation:
Cross-chain protocol integrations
Exchange listing partnerships
Payment license acquisition (VISA/UnionPay)
Infrastructure provider collaborations
DAO Treasury: 10% (21M $INK)
Purpose: Protocol safety and value stability
Management:
100% controlled by DAO governance
Use cases:
Market operations during extreme volatility
$INK token buyback and burning
Smart contract security bounties
Emergency response fund
Token Utility System
Inscription Platform Utilities
For Asset Creators:
Zero-code issuance access
Cross-chain deployment rights
Reputation score enhancement
Featured project placement
Launchpool participation eligibility
For Protocol Users:
Cross-chain transfer capabilities
Fee discounts based on holdings
Governance participation rights
Payment system access
Premium feature availability
Cross-Chain System Benefits
Transaction Processing:
Cross-chain transfer rights
Gas fee optimization
Priority processing
Flash swap access
Bridge security guarantees
Project Development:
Multi-chain deployment capabilities
Cross-chain liquidity access
Reputation score boosts
Featured listings on explorers
Specialized marketing opportunities
Governance Rights
Proposal Thresholds:
Basic proposals: 100,000 $INK
Protocol upgrades: 500,000 $INK
Major economic changes: 1,000,000 $INK
Voting Power Calculation: Base VP = $INK holdings × (1 + α × staking_duration + β × reputation_score)
α: Time multiplier (max 1.5x)
β: Reputation multiplier (max 1.25x)
Decision Domains:
Cross-chain fee rates
Launchpool project selection
Treasury fund allocation
Burning mechanism adjustments
Protocol upgrade approvals
Economic Mechanisms
Deflationary System
The spiral deflation mechanism forms the core of INK Protocol's economic model, systematically reducing token supply through multiple burning touchpoints:
Asset Minting Burns:
100% of minting fees permanently burned
Automatic execution via smart contract
Transparent on-chain verification
Burns scale with inscription creation volume
Cross-Chain Transfer Burns:
0.8% of transfer value permanently burned
Dynamic adjustment based on network conditions
Reputation-based discount system
Automated execution with each transfer
Swap Transaction Burns:
Percentage of gas fees permanently burned
Dynamic burning rate based on network activity
Higher network usage = accelerated burning
Transparent on-chain verification
Staking Lockups:
Minimum one-month lock for project staking
Tiered staking periods with increasing benefits
Temporary supply reduction through lockups
Reduced market selling pressure
Fee Structure
Inscription Issuance:
Base fee determined by complexity
Chain-specific adjustments
Volume discount tiers
Staking-based fee reductions
Cross-Chain Operations:
Base transfer fee (0.8% burned)
Destination chain gas coverage
Size-based scaling for complex assets
Reputation score discounts
Cityverse Payfi System:
3.8% transaction rewards distribution
1.9% systematic burning
Three-tier network incentives
Merchant integration fees
Staking and Rewards
Staking Benefits
Protocol Staking:
Governance weight multipliers
Fee discount tiers
Priority processing
Enhanced reward distribution
Project Staking:
Reputation score enhancement
Featured listing eligibility
Launchpool participation access
Reduced cross-chain fees
User Staking:
Transaction mining rewards
Governance participation incentives
Special airdrop eligibility
Cityverse Payfi multipliers
Reward Mechanisms
Transaction Mining:
Activity-based distribution
Tiered reward structure
Volume-weighted allocation
Time-weighted multipliers
Cityverse Rewards:
Payment processing incentives
Merchant referral bonuses
Card activation rewards
Usage-based distribution
Governance Participation:
Voting activity rewards
Proposal creation incentives
Implementation contribution bonuses
Community contribution recognition
Stability Mechanisms
Market Operations
The protocol implements several mechanisms to ensure $INK maintains healthy market operations and value stability:
DAO-Controlled Treasury:
Strategic token buybacks during volatility
Programmatic liquidity management
Cross-chain liquidity distribution
Emergency intervention capabilities
Protocol-Controlled Liquidity:
Milestone-based liquidity deployment
Multi-chain liquidity provision
Concentrated liquidity strategies
Rebalancing based on market conditions
Reputation System
The on-chain reputation scoring system ensures ecosystem quality while providing economic benefits:
Scoring Components:
$INK staking amount (30% weight)
On-chain transaction volume (45% weight)
Holder address distribution (25% weight)
Economic Benefits:
Fee discount tiers based on score
Priority access to new features
Preferential Launchpool allocation
Enhanced visibility across protocol
This comprehensive tokenomics design creates a self-reinforcing economic system where protocol adoption directly enhances token scarcity through systematic burning. The transparent distribution schedule, combined with clearly defined utility and governance mechanisms, establishes a solid foundation for sustainable ecosystem growth while aligning incentives across all participants.