NRK Tokenomics

Currently, the NRK token follows a mildly inflationary model, with the token supply increasing over time. Here are some key details regarding NRK tokenomics:

  • Block Rewards: With each new block created on Nordek, the validator who creates it and the delegators who staked with them receive block rewards in newly issued NRK tokens. This incentivizes network security and participation.

  • Inflation Rate: The reward amount per block is set in a way that results in an annual increase of approximately 5% in the NRK total supply. This means that each year, new NRK tokens are minted, contributing to the overall token supply.

  • Revenue Predictability: The choice of an inflationary model at the early development stage was made to ensure a certain level of predictability for revenue flow to network validators and delegators. Relying solely on transaction fees as rewards would introduce higher variability, as transaction activity can fluctuate significantly. Predictable validator revenue is an important assumption in the Nordek consensus mechanism.

  • Low Transaction Fees: By providing substantial block rewards, Nordek aims to keep transaction fees on the network low. This approach helps encourage adoption of the Nordek blockchain.

Potential inflation reduction

There is an ongoing discussion within the Nordek community regarding a proposed improvement to reduce NRK inflation. If adopted by the validators, this proposal would result in an annual inflation rate of 2% starting from the third year of the network's existence. The proposal also includes fixed amounts of tokens issued in subsequent years.

You can find the text of the proposal and participate in the discussion through the link provided here.

It's important to note that tokenomics and specific inflation rates can be subject to change based on community consensus and network development

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