Clarifying the circulating supply

Clarifying the circulating supply

We would like to clarify the CHR circulating supply schedule, as this is a subject many investors are interested in. The Chromia white paper included an approximate token release schedule, which we were able to revise making token issuance and unlock rate smoother and less erratic.

First of all, by "circulating supply" we mean all issued CHR tokens except those which are locked using a smart contract.

Chromia does not have a fixed issuance schedule. Tokens enter into circulation at different rates depending on their intended use. However, the maximum rate of issuance is limited so a large number of tokens cannot suddenly enter circulation.

20/140 of tokens sold to private investors entered circulation in August. For the next 12 months tokens will be unlocked at 4x slower rate than in August - 5/140 a month.

To create clarity around circulating tokens, we would like to specify the following limits on issuance of tokens for Chromia's promotion and ecosystem fund during the first year after IEO/TGE (that is, the next 9 months):

  • Up to 21M tokens will be issued for promotion use
  • Up to 55.3M tokens will be issued for ecosystem fund

The maximum possible number of tokens in the circulation at the end of May 2020 would be 324 million tokens. This consists of the following components:

  • Tokens bought by investors: 157M
  • Ecosystem fund: 55.3M
  • Promotion fund: 21M
  • Team (incl. advisors and founders): 41M
  • System node compensation: 20M
  • Conversion contract: 30M

Note that 324M (or 32.4% of the maximum theoretical supply of 1 billion CHR tokens) is the maximum number, the actual number of tokens in circulation will likely be much lower. For example, only a fraction of the system node fund will be used during the first year, likewise, only a fraction of conversion contract tokens will enter the circulation, etc.

It is worth noting that 32.4% is significantly less than 53% unlocked after 1st year as specified in the whitepaper. The difference is caused by significantly slower unlock schedule and stricter limits on issuance of tokens for promotion and ecosystem funds.

In future we plan to create a page which shows statistics such as number of tokens in circulation, tokens issued for various purposes, as well as future projections and commitments.

About Alex Mizrahi

Alex Mizrahi, AKA "killerstorm", led the open source colored coins project from 2012, the first implementation of blockchain 2.0. He has an MSc in applied mathematics from Donetsk National University.

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