Cudos Tokenomics explained
Tokenomics is the most crucial part of any crypto project. Having good tokenomics help projects to survive in the market and attract investors to invest in the projects for long term gain. Tokenomics can be explained like economics of any token, it’s just not limited to the total number of tokens. In this article we will explore the tokenomics of Cudos in depth using available data.
Basics of Cudos token
Cudos token is the native token of Cudos Blockchain, like Ethereum is the native currency for Ethereum blockchain, but compared with ethereum it has unlimited supply but Cudos has max supply of 10 billion tokens. As ethereum is used for using ethereum blockchain Cudos will be fuel for CUDOS blockchain which defines its utility and the core of its value proposition. Currently Cudos has 2.8 billion of circulation in the market.
Total supply v/s circulating supply
Total supply is the max supply of any blockchain which will never going to exceed at any point in Future like Bitcoin has total supply of 21 million is fixed, like that Cudos total of max supply of 10 billion tokens. On the other side circulating supply is the supply which is available to trade & hold by any particular person, like bitcoin has approx. 19 million of supply compared to Cudos which has 2.8 billion token as circulating supply.
Token distribution & Stats
Distribution of token is really important when we are studying the tokenomics of any project as it hints what team is planning with their token in the long-term, we are also looking at available stats which will help to evaluate the tokenomics of the project.
Ecosystem & Community Development:- majority of token has been allocated to this section with 34% of total supply, as this plays a vital role in the success of Cudos, this includes the staking rewards, community engagement rewards and all other activities to grow the ecosystem & increase the Community engagement.
Reserves:- Reserves are the funds which secure for the project’s future growth and development, which can be relocated in future if the team is launching or developing new products. Reserves are important when there are some new opportunities for growth and need urgent actions. Team has reserved 33.78% of total supply which is a lot when compared to other projects.
Team:- For the team 20% of the total supply is secured, a project has lots of team members and they need to be and this allocation allows the team to get rewards for their work.
Advisors:- For advisors 5% of total supply is secured.
Investors:- Investors have 3.33% of total supply.
This is part of allocation where some investors has invested some part of their net worth to get some ownership on the project,
Token sale:- token sale is divided into two parts private sale is about 2.22% of total supply & public sale which is about 1.67% of total supply.
Here is the graph to represent the total distribution of Cudos token in all categories:-
Cudos has raised $3million from public & private investors by distributing 7.22% of the total supply which is approx. 722 million Cudos tokens. Which is distributed in three parts Investors, Public sale & Private sale according to token distribution explained above.
Understanding vesting is also an important part to understand the economic of the project, Cudos has 10 year of token release & vesting period means it will take 10 years for total supply to become circulating supply, which is a lot of time to stabilised the Cudos in the industry and to become an successful company.
Cudos has different types of vesting for different categories of token distribution, where two big parts of the token distribution Reserved & Ecosystem funds have a 10 year vesting period. Whereas team & advisor have three & two year of vesting period respectively.
Here is the graphic which will explain the Cudos token vesting over 10 years of time period-
Cudos is powering the metaverse bringing together DeFi, NFTs and gaming experiences to realise the vision of a decentralised Web 3.0, enabling all users to benefit from the growth of the network. We’re an interoperable, open platform launchpad that will provide the infrastructure required to meet the 1000x higher computing needs for the creation of fully immersive, gamified digital realities. Cudos is a Layer 1 blockchain and Layer 2 community-governed compute network, designed to ensure decentralised, permissionless access to high-performance computing at scale. Our native utility token CUDOS is the lifeblood of our network and offers an attractive annual yield and liquidity for stakers and holders.