IO Token Economics Analysis and Monthly Unlock Calculation

Original author: Riyue Xiaochu｜HZGB

Original source: twitter

1. Calculate the circulation first. TGE will be new within one year. There are three main things to increase circulation

1) The community is 13.28 million, with an average of 1.1 million IO per month

2) Operation and ecology is 14.24 million, with an average of 1.18 million per month.

3) Node incentives. At first glance, an inflation rate of 8% per year may not seem high, but it is not. Because there are relatively few circulating tokens in the first year, the overall circulating inflation is very high. To put it simply, in the first year, node incentives will increase the circulation of 37.84 million coins, with an average of 3.15 million coins per month.

So, in the first year of TGE, IO’s new monthly circulation was 5.43 million.

2. Starting in June 2025, teams and investors will begin to unlock it. 10.16 million coins are unlocked every month. According to financing calculations, the investment cost for seed round investors is US$0.1, and the cost for Series A investors is US$0.36.

3. IO’s token is a little bit special. It has two supplies, an initial supply of 500 million and a maximum supply of 800 million. After the initial supply of 500 million, additional issuance will be issued every year, starting from 8% in the first year and decreasing by 1.02% every month. It can be increased to 800 million in 20 years at most. In fact, there are many projects that issue additional node rewards every year, such as eth, dot, etc. It's just that other projects don't specifically raise the issuance limit like io.

4. However, because IO has two supplies, it is easy to make mistakes under different data ratios, and some details are easily misled by the official.

Binance Launchpool: 20 million coins, 2.5%

Seed round investors: 100 million coins, 12.5%

Series A investors: 8,120 coins, 10.15%

Core contributors: 9072 coins, 11.34%

Operation and ecology: 128 million coins, 16.01%

Community: 80 million coins, 10%

5. The initial circulation is 95 million coins, including 20 million coins for Binance Launchpool, 37.5 million coins for the community, and 37.5 million coins for operations and ecology. Generally speaking, the community’s 37.5 million coins will be used for airdrops. Part of the 37.5 million coins for operation and ecology will be used to provide liquidity, and the rest may be reserved or sold by the project party (this will only be known after tracking on the chain)

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