LTO Network's new tokenomic structure is almost here. Testnet launch expected toward the end of March.

LTO Network are adjusting their tokenomics structure after conversing with the community late fall last year. The LTO Network team wanted to stay competitive with usage costs and address concerns from the community that price rise of the token could work against the usage from integrators.

After several round table discussions on telegram and internal a new structure was chosen (one very similar to SOLANA, I believe) and work began to implement it. Here's what will change:

• Batch transactions will offer more cost economic ways for companies and integrators to use the LTO blockchain. This will allow parties to bundle transactions to achieve lower costs, even if the amount of transactions rise.
• Nodes will act as oracles for fee voting allowing the community to gradually adjust the fee of different transaction types in reaction to token price fluctuations.
• To ensure sufficient mining rewards, LTO will be minting new tokens to increase the APY. Current APY lies around 4,5%, should the same staked amount remain, the new structure will provide 15-17% APY. Number of stakers/leasers will of course impact this percentage. Less stakers = higher APY, more stakers = less APY.
• Since launch in January 2019, LTO has burned over 100M LTO tokens. Decreasing total supply from 500M to below 400M. These burned tokens cannot be retrieved, but with a max supply of 500M LTO, there's room for the new tokenomics structure to mint 100M LTO tokens over time. The max supply cannot surpass 500M LTO and it is not expected that the total supply will ever reach that level again as increased usage over the years will eventually make the amount of burned tokens (see next point) more than the amount of minted tokens for the increased APY reward. Long story short, you could call LTO to become temporarily inflationary until the burn amounts flip it back to fully deflationary again (which it is now).
• The transaction burn fee will switch from a static 0.1 LTO per transaction to 50% burn of the transaction cost. This will make the burn mechanism more flexible with all the different transaction types that were introduce with the Decentralized Identities update names COBALT, that have different transaction costs compared to the simple anchoring transactions.
• There will be a stake/unleasing period of 2 days (perhaps more). Meaning people that are staking and leasing for the higher APY rewards will have to wait 3000 blocks after unleasing before they can move their tokens.

You can track the progress on the new tokenomics on github: https://github.com/ltonetwork/lto-public-chain/pull/127

Todo list from LTO Github

Full details on the new tokenomics structure can be found in the LTO blog: https://blog.ltonetwork.com/tokenomics-update/

Apart from the new tokenomics, it's expected we will see the first use cases go live for the decentralized identities soon.

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LTO Ecosystem

ERC20 variant LTO

Oh and if you're already holding LTO for a long time, don't forget that their ERC20 smart contract has swapped to a newer version. You can read about the soft swap here and don't forget to check which exchange supports which version of LTO before you move tokens around.