🪙Tokenomics

The IOTX token, introduced in 2019 for the IoTeX L1, serves as the currency balancing incentives among validators (Delegates), Dapp builders, and users. Validators receive IOTX rewards for staking and validating transactions, while developers and users pay IOTX for transactions and smart contract interactions. Additionally, IOTX tokens are staked by token-holders for participation in network governance.

Expanded Tokenomics for IOTX

As IoTeX evolves from a simple L1 to a modular platform with interconnected infrastructure, the tokenomics of the IOTX token will also expand to align with our vision for IoTeX 2.0. This includes new utilities for the IOTX token, which will be integrated into the new technology offerings of IoTeX 2.0.

A key goal of IoTeX 2.0 tokenomics is to balance inflationary staking rewards and deflationary token burning based on platform usage. Additionally, we aim to incentivize DePIN Dapps and L2s to utilize our modular infrastructure. The upgraded tokenomics will not only introduce new utility and value for the IOTX token by connecting it to W3bstream, ioID, ioDDK, and other DIMs but also maintain a stable token supply through balanced inflationary and deflationary mechanisms.

As IoTeX's modular infrastructure sees increased adoption, the IOTX token will gain new value as the currency of the IoTeX 2.0 network.