Tokenomics
The emission model of $ETH6900 is designed around long-term sustainability and scarcity. The token supply is permanently capped at 69,000,000, meaning there will be no future minting. Instead of inflation, ETH6900 focuses on redistribution through activity-based emissions, deflation through burns, and circulation via staking rewards.
This structure ensures that supply remains predictable while still providing enough movement to maintain liquidity, incentives, and network growth.
Token Flow Structure
The supply of $ETH6900 moves through three dynamic cycles:
Emission Cycle – Distribution of tokens through rewards, staking, and community incentives.
Utility Cycle – Circulation of tokens through staking, fees, governance, and access tiers.
Deflation Cycle – Token burns through penalties, buybacks, and treasury balancing.
Together, these create a closed economic loop that fuels the protocol without supply inflation.
Emission Schedule
Year | Total Supply Released | Annual Unlock (%) | Key Events |
|---|---|---|---|
Year 1 | 27,600,000 | 40% | Launch of staking and community reward pools |
Year 2 | 17,400,000 | 25% | Ecosystem incentives and DAO reward expansions |
Year 3 | 13,800,000 | 20% | Partner integrations, relayer expansion, liquidity incentives |
Year 4 | 6,900,000 | 10% | Final vesting and treasury stabilization |
Year 5+ | 3,300,000 | 5% | Ongoing staking rewards and burn offsets |
Total Supply after Year 5: 69,000,000 $ETH6900
Emission follows a tapered model, where annual reward pools reduce as network maturity and organic fee circulation increase. This prevents oversaturation and ensures deflationary pressure over time.
Emission Formula
Reward emissions for staking and activity pools follow a decreasing model defined by:
Emissionn=BaseReward×(1−r)nEmission_n = Base_Reward × (1 - r)ⁿ
Where:
Emission_n= reward allocation in year nBase_Reward= initial annual reward poolr= decay rate (0.25)
This ensures rewards decline gradually, encouraging early participation while preserving longevity.
Deflation Mechanisms
Mechanism | Description | Impact |
|---|---|---|
Protocol Fee Burns | A small portion of relay and scheduling fees (0.05–0.2%) is automatically burned. | Gradually decreases total supply over time. |
Penalty Burns | Tokens from slashed relayer stakes due to downtime or manipulation attempts are destroyed. | Creates economic accountability and strengthens network trust. |
Treasury Buybacks | When treasury revenue exceeds 10% annual surplus, ETH6900 DAO buys and burns tokens on secondary markets. | Offsets reward emissions and stabilizes market value. |
Inactive Wallet Reclaim | Rewards unclaimed after 12 months are reclaimed and burned. | Prevents inflation from lost or inactive claims. |
Through these deflationary tools, the effective circulating supply is projected to decrease slowly over time, counterbalancing the early emission years.
Projected Circulating Supply Curve
Year | Estimated Circulating Supply | Notes |
|---|---|---|
1 | 27,000,000 | Initial staking and community incentives begin |
2 | 41,000,000 | DAO and treasury expansion |
3 | 52,000,000 | Strong DeFi integration and cross-chain presence |
4 | 59,000,000 | Major burns from buybacks and slashed relayers |
5 | 63,000,000 | Supply stabilizes with natural burns |
6+ | 60,000,000 (net) | Projected deflationary drift of ~1.5% annually |
By year 6, the protocol enters a soft deflationary phase where burned and locked tokens exceed new emissions, effectively capping circulating supply.
Staking Reward Emission Breakdown
Year | Staking Reward Pool | Annual Yield (Estimated) | Notes |
|---|---|---|---|
1 | 3,450,000 | 15–20% | Launch incentives |
2 | 2,760,000 | 12–15% | Normalization phase |
3 | 2,070,000 | 8–10% | Post-scaling stabilization |
4 | 1,380,000 | 5–7% | Mature phase |
5+ | 690,000 | 3–5% | Sustained passive rewards |
As transaction volume and relayer revenue grow, staking rewards will gradually shift from token emissions to fee-based payouts, reducing reliance on inflationary incentives.
Economic Balance Target
ETH6900 maintains a balance ratio between incentive emissions and burns to ensure long-term stability.
TargetBalance=(Burns+Buybacks)≥(AnnualEmission×0.25)Target_Balance = (Burns + Buybacks) ≥ (Annual_Emission × 0.25)
If annual burns exceed 25% of emissions, ETH6900 becomes deflationary without the need for additional supply limits.
Governance-Adjustable Parameters
The DAO can adjust key economic parameters via on-chain proposals, allowing dynamic alignment with network growth.
Parameter | Default | Governance Range |
|---|---|---|
Base Reward Decay (r) | 25% per year | 10–35% |
Fee Burn Ratio | 0.1% | 0.05–0.3% |
Reward Pool Cap | 10% of circulating | 5–15% |
Buyback Trigger | 10% treasury surplus | 5–20% |
These adjustable controls ensure that token economics remain responsive to network maturity rather than rigidly fixed.
The ETH6900 emission and supply schedule combines fairness, scarcity, and flexibility. With a capped supply of 69,000,000 tokens, gradually decreasing reward emissions, and ongoing deflation through burns and buybacks, the system is designed for long-term value preservation.
ETH6900’s supply model ensures that every phase of growth — from launch to maturity — is economically balanced, rewarding participation while keeping inflation permanently at zero.