# Tokenomics

🪙 **Token Structure: Two-Token Deflationary Model**

onocoy uses a **two-token** system to separate **incentives and value appreciation (ONO)** from **stable utility payments (data credits)**.

## 1. **ONO Token**

* **Type**: Utility token
* **Supply**: Capped at **810 million**
* **Functions**:
  * Governance
  * Miner and contributor rewards
  * Incentivizes infrastructure rollout
* **Deflationary Mechanics**:
  * Fiat revenue from data sale is used to finance operations (i.e. platform development, operations and ecosystem development) and may be used for token buy backs. A percentage of these tokens is burned, reducing total supply
* **Transferability**: Yes (freely tradable) 
* **Token Allocation and release**:

| Stakeholder        | Allocation | Vesting/Release Type     |
| ------------------ | ---------- | ------------------------ |
| **Community**      | 40%        | Continuous + halving     |
| **Ecosystem Fund** | 32%        | Lock + vesting + halving |
| **Investors**      | 14%        | Linear monthly vesting   |
| **Team**           | 10%        | Lock + linear vesting    |
| **Market Making**  | 4%         | One-time                 |

* **Token distribution over time:**

<figure><img src="https://3173123995-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FjBN41DfVchs8L33Unu18%2Fuploads%2FjtDAfD341mczHU7NgOqL%2FToken_Release.jpg?alt=media&#x26;token=f1fdeed4-f242-4e32-872a-65cd489105f3" alt="This image shows a graph of the token release in relation to the yearrs after TGE. It is divided between the circulating supply of the team, ecosystem, community, investors and listing &#x26; market making. After 3 years, approximately 65% of the tokens will be circulating according to plan."><figcaption></figcaption></figure>

onocoy’s **token release strategy** is designed to balance early growth incentives with long-term sustainability, using a **deflationary and vesting-based model**. The circulating supply grows relatively slow, which matches the need of an infrastructure project.

### &#x20;**Deflationary Model**

* **New ONO tokens are released** according to a **halving schedule**, similar to Bitcoin:
  * **16% reduction in new supply per year**
  * Results in **no new tokens** after several years
* This affects **miner/validator rewards**, gradually decreasing over time
* **Burn mechanism**: ONO tokens are **burned** when swapped for data credits, adding **upward price pressure**

## 2. **Data Credits**

* **Type**: Non-transferable token pegged to fiat (USD)
* **Supply**: Uncapped
* **Function**: Grants **access to GNSS data streams**
* **Price Stability**: Pegged 1:1 with fiat to ensure predictable costs
* **Acquisition**: Bought with fiat through onocoy
* **Burned on Use**: Eliminates speculation; no resale or trading
* **Transferability**: No, DC can only be used to access GNSS data streams.

***

### 🔁 **Token Flow & Tokenomics**

* **Users buy data credits** → prepayment for data services
* **Credits are burned** after data services are consumed
* **Fiat revenue** from data sale is used to finance operations (i.e. platform development, operations and ecosystem development) and may be used for token buy backs.
* Bought-back ONO are split between:
  * **Split** between:
    * **Reward pool** (to reward miners/validators)
    * **Ecosystem pool** (for platform maintenance & growth)
    * **Burned** to reduce supply (i.e. deflationary element)

📌 **Key Benefit**: Supports stable fiat pricing while driving demand and value for ONO.

<figure><img src="https://3173123995-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FjBN41DfVchs8L33Unu18%2Fuploads%2FA7AsolFWTfwm7bHus4dj%2FToken%20economy.png?alt=media&#x26;token=0c7f9716-d3b1-4542-bc62-af29298586bf" alt=""><figcaption></figcaption></figure>

***

### 🗳️ **Governance**

* **Legal entity**: Swiss non-profit association
* **Initial voting**: 1 ONO = 1 vote (via Realms on Solana)
* **Future model**: **Square-root voting** to reduce centralization
* **DAO model**:
  * Token holders govern protocol & association
  * Decisions include reward levels, roadmap, upgrades
* **Teal Organization**: Peer-based, autonomous structure for team operations

***

### 📊 **Value Dynamics**

* Revenue-driven ONO buybacks + burns → **deflationary pressure**
* Simulations show long-term **value appreciation**
* Growth in users, coverage, and new applications (e.g., climate monitoring, tsunami alerts) adds demand

***

#### ✅ Summary Table

| Feature          | Description                                                                                                                         |
| ---------------- | ----------------------------------------------------------------------------------------------------------------------------------- |
| **Core Token**   | ONO (utility token, capped, deflationary, tradable)                                                                                 |
| **Data Access**  | Through Data Credits (fiat-pegged, burned, non-tradable)                                                                            |
| **Incentives**   | Miners rewarded in ONO based on performance (and usage).                                                                            |
| **Revenue Use**  | Platform development, operations, ecosystem development, ONO buyback (for reward pool), ecosystem pool, ecosystem fund, token burn. |
| **Governance**   | DAO with initial 1:1 voting → future square-root voting                                                                             |
| **Deflationary** | 16% annual ONO emission decay + burn model                                                                                          |