TechFlow reported that Dymension, the modular settlement layer in the Cosmos ecosystem, has unveiled its token economic model. The issuance of DYM tokens is a dynamic process based on the proportion of staked DYM relative to the total supply.
The initial supply of DYM is 1 billion tokens, with an initial issuance of 8%. Allocations include 5% for the community pool, 8% for airdrops, 14% for investors, 20% each for core developers and ecosystem development, and 33% for incentive programs.
The protocol dynamically adjusts the inflation rate of DYM based on actual staking ratios. The rate of change in DYM issuance over a year is quantified by the following formula:
When the proportion of staked DYM in the protocol is below 67%, the inflation rate will gradually increase, up to a maximum inflation rate of 10% or until the staking target is reached.
When the staking ratio matches the 67% target, the inflation rate remains stable. If the staking ratio exceeds 67%, the inflation rate will gradually decrease until it reaches the minimum inflation rate of 1% or until the staking target is achieved.
