Dear Crankk Community,
We are excited to propose a change to our tokenomics that we believe will facilitate Crankk’s long-term growth. After careful consideration, we have decided to move away from our multi-chain tokenomics system and adopt a chain-agnostic approach. This solution will simplify our tokenomics and make it easier for both current and future community members to understand.
Under this new system, we will treat the Crankk token as a whole on the Kadena blockchain. Although Kadena has multiple chains, tokens on the blockchain can be seen as mildly separate tokens on each chain. However, cross-chain transfers are not a significant concern, and looking at the token as a whole is entirely possible.
We would like to reassure our community that most of our original commitments remain unchanged. From the outset, we made a conscious decision to exclude early investors and venture capitalists from receiving a large allocation of Crankk tokens. We firmly believe in the principle of meritocracy, where contributors to the network are rewarded for their efforts. As such, we have no plans to change our token allocation model, and will continue to prioritize sustainable growth over short-term gains. The only way to earn Crankk tokens is by contributing to the network. The token allocation will also remain the same, with 80% going to miners, 8% to the Crankk team, 4% to investors, 4% for marketing, and 4% for liquidity creation purposes.
However, we are proposing a few changes to our tokenomics system. To begin, we propose reducing the emission timeframe from 20 years to 10 years. We believe that if the Crankk network does not become self-sustaining in ten years, it will not achieve this in another ten years either. Therefore, we propose emitting all 200MM tokens in ten years.
Most importantly, we will keep the current earnings until we hit the threshold of distributing 43,836** tokens per day. At that point, the cycle rewards will start decreasing proportionately as the number of nodes grows. Our calculations show that we will hit this threshold at 3,800 participants. Therefore, current awards will remain the same until we reach this number of nodes, which we hope to achieve sometime in the second half of this year.
Here’s a highlight of what it means for the future with 43,836 Crankk Tokens per day. At 3,800 nodes the cycle rewards will start decreasing proportionately with the growing number of nodes. The next line shows figures at 10k nodes. The cycle reward will be down to 0.731 CRKK and send reward at 0.348 CRKK with an average daily earning of 4.175 CRKK. The third line points out that at 100k nodes the rewards are 1/10th of the previous line.
We hope you will vote yes on this proposal and look forward to your feedback. We are committed to creating a sustainable and thriving ecosystem for the Crankk community and thank you for your continued support.
The Crankk Team
** A short calculus on how 43,836 tokens per day is calculated. 10 years times 365 days equals 3650 days. 200MM * 80% of tokens going to miners is 160MM. 160,000,000 divided by 3650 equals 43,836. Please note, that we can’t be fully accurate here. Distributing the exact allocated number of tokens per day would require complex calculus on the blockchain, increasing gas fees. There are other factors as well. If a beacon is not heard by any witnesses then the witnessing portion is zero for that beaconing/witnessing cycle. Also, we haven’t reached the daily distibution allocation yet, so there will be tokens remaining at the end of 10 years. So, we’ll just run the network rewards until all 160MM tokens are awarded to miners which should not be less than 10 years.