Tokenomics

Token launch coming soon!

Network Rewards: 35% - reserved for rewarding staking & GPU contributors over time. Linear allocation over 72 months.
Liquidity: 15%
Development Fund: 20% - for ongoing development, ecosystem growth, and maintenance.
Team and Advisors: 15% - with a cliff and vesting schedule to ensure long-term commitment.
Seed Holders: 10% - with 50% vesting at TGE, no cliff, and a 3-month linear vesting schedule for the remaining 50%.
Community and Marketing: 5% - for airdrops, community incentives, and marketing campaigns. Linear allocation over 24 months.

Cliff Period: 6-month cliff. Team members and advisors will not be able to access their allocated $ORB tokens for the first 6 months after the token generation event (TGE).
Vesting Period: 3-year vesting period after the cliff. After the initial 6-month cliff, tokens will vest linearly over the following 36 months. This gradual release prevents a sudden influx of tokens into the market, which could negatively impact the token price.
Vesting Mechanism: Tokens are released quarterly during the vesting period, allowing team members and advisors to gradually receive their allocated tokens. This approach aligns their incentives with the long-term success of the project.

Rewards:

Earning Mechanism: GPU contributors earn $ORB tokens based on their computational contributions and the quality of their work. The more computational power provided and the better the training results, the higher the reward.
Reward Calculation: Rewards are dynamically calculated based on factors like GPU performance, task complexity, and model accuracy. A higher contribution to the network’s efficiency results in more tokens earned.
Decay Mechanism: To prevent rapid depletion of the reward pool, rewards per task slightly decrease over time. This ensures that early adopters are rewarded but maintains long-term incentives.

Staking for Security:

Staking Requirements: Nodes must stake a minimum amount of $ORB tokens to participate in the network. The amount required could vary based on the node's capabilities, reputation, and role within the network (e.g., validator nodes may need to stake more).
Slashing Mechanism: If a node acts maliciously or fails to meet network standards (e.g., submitting incorrect results), a portion of its staked tokens is slashed and redistributed to honest nodes or burned.
Staking Rewards: Stakers earn additional $ORB tokens as rewards for securing the network, verifying transactions, and maintaining the integrity of the system. These rewards are proportional to the amount staked and the duration of the stake.

Transaction Fees:

Usage Fees: Users pay $ORB tokens to access the Orbitalx network for AI training tasks. The fees vary based on the complexity and resource demands of the task.
Fee Distribution: Collected fees are distributed to GPU contributors who completed the training tasks, with a small percentage (e.g., 1-2%) going to the development fund to support ongoing network improvements.
Burn Mechanism: A portion of the transaction fees (e.g., 0.5%) could be burned to reduce the total supply of $ORB tokens over time, creating deflationary pressure and potentially increasing the token’s value.

Governance:

Decentralized Governance: $ORB token holders have the power to participate in the governance of the Orbitalxnetwork. This includes voting on protocol upgrades, fee adjustments, reward structures, and other critical decisions.
Proposal System: Token holders can submit proposals for network changes. A minimum threshold of staked $ORB tokens is required to submit a proposal, ensuring that only serious and well-considered ideas reach a vote.
Voting Power: Voting power is proportional to the amount of $ORB tokens held or staked by a participant. However, to prevent centralization of power, quadratic voting or other mechanisms could be implemented to balance influence.

Token Buybacks: The development fund can be used to buy back $ORB tokens from the open market, especially during periods of low demand, to stabilize the token’s value and support the ecosystem.
Periodic Reviews: The tokenomics model, including rewards, fees, and staking requirements, is subject to periodic review and adjustment by the community to ensure it remains fair, balanced, and sustainable as the network grows.
Partnerships and Integrations: $ORB tokens could be used for strategic partnerships with other blockchain projects, AI platforms, or data providers, expanding the utility and adoption of the token.

Incentive Programs: Ongoing community engagement through incentive programs, such as bug bounties, hackathons, and educational initiatives, where participants earn $ORB tokens.
Airdrops and Loyalty Rewards: Early adopters and active participants could receive airdrops or loyalty rewards in $ORB tokens to encourage long-term involvement and foster a strong, supportive community.

Last updated 3 months ago