# Tokenomics The Gnodi Blockchain’s tokenomics incentivize participation, ensure fair distribution, and maintain a sustainable economic model. This section explains the daily distribution mechanism, tokenomics, and principles governing the Gnodi native utility token. ### Tokenomics Overview 1. **Total Supply:** a. The Gnodi Blockchain caps its supply at 35 billion GNOD tokens (GPT), ensuring scarcity and potential value appreciation. 2. **Initial Distribution:** a. At the genesis block, the network distributes 50% of the total supply (17.5 billion GPT) within the first year to incentivize early participation and drive ecosystem growth. 3. **Halving Schedule:** a. The Gnodi Blockchain follows a halving schedule where token distribution halves annually on the genesis block's anniversary, inspired by Bitcoin but adapted for Gnodi’s needs. This mechanism slows token inflation, ensuring long-term sustainability and value appreciation. ### Daily Distribution Mechanism The daily distribution mechanism rewards active participation and contributions to the network. Here’s how it works: 1. **Distribution Pool:** a. In the first year, the distribution pool starts with 17.5 billion GPT, spread evenly over 365 days. Each subsequent year, the pool halves, reducing daily distribution amounts. 2. **Daily Allocation:** a. In the first year, 47,945,205 million GPT tokens are distributed daily. After each halving, this daily allocation decreases in line with the reduced annual pool. 3. **Distribution Criteria:** Gnodi distributes tokens based on criteria that assess network participants' contributions, including: a. **Node Operation:** Active operation of both Layer One Validators and Layer Two Delphi Nodes. b. **Application Interaction:** Contributions to Delphi applications through tasks and interaction like data validation. c. **User Activity:** Transaction frequency, smart contract deployment (if applicable), and governance participation. d. **Impact Assessment:** Proof-of-Impact protocol validation of user contributions. **Proof-of-Impact Protocol** The Proof-of-Impact protocol validates user activity, contributing to daily distribution. Delphi Nodes verify this data, ensuring the tokens are distributed based on genuine contributions and participation. **Long-Term Sustainability** The Gnodi Blockchain’s tokenomics promote sustainability through several principles: 1. **Controlled Inflation:** The halving schedule slows token inflation, ensuring scarcity and supporting value appreciation. 2\. **Incentive Alignment:** The token distribution model incentivizes active participation, driving network growth and security. 3. **Transparency and Predictability:** The clear distribution and halving schedule ensure transparency, allowing participants to plan their activities confidently. 4. **Adaptive Mechanisms:** Gnodi’s governance allows the community to propose adjustments to the distribution model, ensuring flexibility. This tokenomics model ensures fair distribution and sustainable growth for the Gnodi Blockchain ecosystem. --- # 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.gnodi.io/documentation/the-constitution/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.