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.
What’s Next?
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!
About IoTeX
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”.
