Emissions/Circulating Supply
Autheo’s emission model is designed to maintain market stability while driving ecosystem growth through a careful balance of inflationary and deflationary mechanisms. This dynamic approach ensures that token supply aligns with network activity, staking participation, and overall ecosystem demand.
Key Emission Principles:
- Inflationary Model with a Cap: Autheo employs an inflationary model where the token supply gradually increases over time, but within a predefined cap of 7 billion THEO tokens. This model fosters scarcity over time, encouraging long-term value appreciation.
- Dynamic Price Stability: Inflation rates are dynamically adjusted based on real-time metrics, such as the percentage of staked tokens and overall network activity. This ensures that token emissions respond to ecosystem demand, avoiding oversupply during periods of reduced activity.
- Integrated Deflationary Mechanisms: To counterbalance inflation and enhance price stability, deflationary mechanisms are built into the ecosystem. These include:
- Token Burns: Governance-approved burns or automatic burns triggered by network conditions, such as high transaction volumes or validator penalties.
- Transaction Fee Allocation: A portion of transaction fees collected within the ecosystem is burned, reducing the circulating supply over time.
- Validator Slashing Penalties: Misbehaving validators face penalties that include token burns, promoting integrity and sustainability.
