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A new tokenomics model--Is this what fairness looks like?

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by COINS NEWS 79 Views

A new tokenomics white paper has been published by IOTA. I am not really familiar with other tokenomic models, so I am interested to know if people can comment on what they think of this.

I am aware that IOTA still has to demonstrate that its tech-stack can make all of this happen so no need to point this out.

Here is a bit of the abstract in case it makes you want to read the paper:

Traditional cryptocurrencies often rely on token-based incentives, resulting in a degradation of civic duty and a skewed distribution of wealth. IOTA 2.0 diverges from this trend, offering access to the network as a reward for maintaining the network, thus creating an inclusive and accessible cryptocurrency ecosystem and making digital autonomy a reality for a broader user base. IOTA 2.0’s leaderless consensus eliminates fees for token holders, who instead burn Mana, a resource generated by their tokens, to produce their own blocks. By rewarding participation in the network with Mana and not the base token, IOTA 2.0 tokenomics prevents value extraction and exploitation by profit-motivated validators. Our approach eliminates inflation entirely, ensuring a fixed token supply and preventing wealth concentration. Tying rewards directly to the system’s utility also encourages sustained, long-term engagement from early adopters, and accommodates users restricted from receiving cryptocurrency rewards.

Here is the tweet (using nitter link so no need to login) from IOTA if you would prefer to click on that: https://nitter.net/iota/status/1728367940930568498

My own take so far is that it points towards the kind of ecosystem I would like to be a part of, but that's just me. Keen to hear what others think.

submitted by /u/powderfinger303
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