# Tokenomics πŸͺ™ **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:**
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 & market making. After 3 years, approximately 65% of the tokens will be circulating according to plan.
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. ### **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. *** ### πŸ” **Token Flow & Tokenomics** * **Users buy data credits** β†’ 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) πŸ“Œ **Key Benefit**: Supports stable fiat pricing while driving demand and value for ONO.
*** ### πŸ—³οΈ **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 *** ### πŸ“Š **Value Dynamics** * Revenue-driven ONO buybacks + burns β†’ **deflationary pressure** * Simulations show long-term **value appreciation** * Growth in users, coverage, and new applications (e.g., climate monitoring, tsunami alerts) adds demand *** #### βœ… 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 β†’ future square-root voting | | **Deflationary** | 16% annual ONO emission decay + burn model | --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.onocoy.com/documentation/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.