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	22%	Lock + vesting + halving
Investors	24%	Linear monthly vesting
Team	10%	Lock + linear vesting
Market Making	4%	One-time

• Token distribution over time:

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.

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🔁 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.

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🗳️ 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

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📊 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

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✅ 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