Please review our previous post on Burn-Drop before reading this article.
Earlier this month we announced Burn-Drop, a new tokenomics program where 1 Billion IOTX (10% of total supply) has been allocated to bootstrap the first 1 million “Powered by IoTeX” devices. For every new device that is registered to the IoTeX Network, a new Burn-Drop event will be triggered to drive continuous value to the overall network and individual stakeholders.
To prepare the community for Burn-Drop, we are excited to announce Ignite, a special campaign where long-term stakeholders can earn an extra 10% annualized returns throughout August! In this article, we introduce the Ignite campaign/timeline and explain the expected returns of Burn-Drop.
Ignite — the Precursor to Burn-Drop
Over the past month, IoTeX has developed new websites, smart contracts, and tools to power Burn-Drop for years to come. Before Burn-Drop is officially activated, we are hosting a special Ignite campaign starting July 31 to familiarize the IoTeX community with our new suite of Burn-Drop technology. Ignite will run throughout August for approximately four weeks.
During Ignite, stakeholders can earn an extra 10% annualized returns on all IOTX that is auto-staked for ≥91 days, as well as a limited edition Ignite NFT. This is in addition to the ~8% annualized rewards you already receive by staking/voting for Delegates. This means by participating in Ignite, you can earn ~18% total annualized returns throughout August!
During Ignite, IOTX will be distributed on a daily basis via smart contracts to all eligible stakeholders. The IOTX will be added directly to each eligible bucket, which allows for daily compounding of your principal and interest. Note: a discretional cap on the total IOTX distributed throughout Ignite may be applied by the IoTeX Foundation.
So what are you waiting for? Set your buckets to auto-stake for ≥91 days and get ready for Ignite! We look forward to kicking off Ignite on July 31 and hearing your feedback.
Burn-Drop Economics: Let’s Break It Down
After Ignite concludes, Burn-Drop will be officially activated. As the name implies, Burn-Drop consists of two components — Burn & Drop. Of the total 1 Billion IOTX reserved for Burn-Drop, 90% (900M IOTX) will be burned and taken out of circulation, while 10% (100M IOTX) will be dropped to the wallets of long-term stakers. The Burn-Drop schedule consists of ten phases and is summarized in the table below.
Expected Burn-Drop Returns for Long-Term Stakers
In addition to the ~8% annualized rewards you already receive from staking/voting for Delegates, you can earn up to 20% extra returns on your staked IOTX throughout the Burn-Drop program. All buckets that are auto-staked for ≥91 days are eligible for Burn-Drop — the more IOTX you stake long-term, the more rewards you will receive!
Throughout the Burn-Drop program, a total of 100 Million IOTX will be “dropped” to the wallets of long-term stakers. Every new device that is registered to the IoTeX Network will trigger a new Burn-Drop event in a cumulative fashion. We provide some guidance on calculating your expected Burn-Drop returns below.
Returns = [(Your Eligible IOTX)/(Total Eligible IOTX)] * 100M IOTX
More exciting details about Burn-Drop and the official activation date will be announced throughout the Ignite program. For more information, please see our previous post on Burn-Drop.
Ignite will officially kick off on Friday, July 31 and will last for approximately four weeks as we fine-tune our new suite of Burn-Drop technology. We will be debuting exciting tools across front-end (e.g., website, dashboards) and back-end (e.g., smart contracts, repos) in the coming weeks.
Burn-Drop & Ignite will jumpstart IoTeX’s journey to 1 Million devices, as well as unleash incredible value to the overall network and individual stakeholders. With the powerful network effects and growth-oriented tokenomics that Burn-Drop will provide, IoTeX will make significant strides towards our vision for the Internet of Trusted Things. Join us!
Founded as an open source platform in 2017, IoTeX is building the Internet of Trusted Things, an open ecosystem where all “things” — humans, machines, businesses, and DApps — can interact with trust and privacy. Backed by a global team of 30+ top research scientists and engineers, IoTeX combines blockchain, secure hardware, and confidential computing to enable next-gen IoT devices, networks, and economies. IoTeX will empower the future decentralized economy by “connecting the physical world, block by block”.