Tokenomics
Last updated
Last updated
The tokenomics of Clore Coin (CLORE) are meticulously designed to support the growth, sustainability, and long-term value of the Clore.ai ecosystem. CLORE’s tokenomics revolve around its fixed supply, reward distribution, emission schedule, and various incentives for holding the coin.
Fixed Supply:
CLORE has a total capped supply of 1.3 billion coins, ensuring scarcity. This fixed supply is a critical aspect of CLORE’s economic model, promoting long-term value appreciation as demand for the coin increases.
Emission Schedule:
The emission of CLORE coins is carefully controlled through a predetermined schedule that spans 20 years. The block creation time is 1 minute, with rewards decreasing as more blocks are mined.
Reward Distribution:
Miners: Receive 50% of the block rewards, incentivizing them to secure the network and validate transactions.
GPU Hosters: Receive 40% of the block rewards, which encourages more GPU owners to participate in the Clore.ai marketplace.
Clore Team: Receives 10% of the rewards, which are used to fund ongoing development, infrastructure maintenance, and future innovations, ensuring the platform's sustainability.
Incentives for Holding:
The Proof of Holding (POH) system rewards users for simply holding CLORE coins in their wallets. This system incentivizes long-term holding, contributing to the coin’s price stability and reducing market volatility.
Additionally, users participating in POH receive discounts on Clore.ai services and may also benefit from airdrops and other promotional rewards.
Economic Sustainability:
CLORE’s economic model is designed to ensure sustainability, with a gradual reduction in block rewards to control inflation. This, combined with the fixed supply and diverse use cases, promotes a balanced ecosystem where all participants are adequately incentivized to contribute to the network's growth and security.
Clore is currently a Proof of Work (PoW) platform, and it will transition to a hybrid PoW+PoS model starting in October 2024. This evolution reflects Clore’s commitment to enhancing its governance mechanisms to ensure network security, energy efficiency, and broad participation.
• Current Implementation: As of now, Clore operates solely on the PoW consensus mechanism using the Kawpow algorithm. Blocks are created every minute, and miners use their GPU resources to solve complex mathematical problems, thereby validating transactions and securing the network.
• Security and Validation: PoW is fundamental to the network’s security, relying on computational power to maintain the integrity of the system. While this process is energy-intensive, it ensures that all transactions are securely validated.
• Future Evolution: In October 2024, Clore will transition to a hybrid PoW+PoS system. The PoW component will switch to a new, more energy-efficient ClorePoW algorithm. Initially, 25% of the block rewards will be allocated to PoW, and within six months, this will be further reduced to 10% as the network shifts more towards PoS.
• Post-October Implementation: Starting in October 2024, Clore will introduce PoS as part of its governance model. PoS is a more energy-efficient consensus mechanism where validators are chosen based on the number of CLORE coins they hold and stake as collateral. This method encourages users to hold and stake their coins, contributing to network stability.
• Hybrid Model Implementation: In the initial phase, 25% of the block rewards will be allocated to PoS. Over the following six months, this allocation will increase to 40%, emphasizing Clore’s shift towards a more sustainable and participatory governance model.
• 50% PoW (Proof of Work): Currently, 50% of the block rewards are allocated to PoW, used by miners to secure the network through the Kawpow algorithm.
• 40% Hosters: A significant portion of block rewards is allocated to hosters who provide the necessary infrastructure.
• 10% Developers: This allocation supports ongoing development and maintenance.
1. October 2024 Transition:
• 25% PoW: The allocation for PoW will be reduced to 25%.
• 25% PoS: Simultaneously, 25% of the rewards will be reallocated to PoS as part of the shift to a more energy-efficient consensus mechanism.
• The rest of the block rewards (40% to hosters and 10% to developers) will remain unchanged.
2. Further Adjustment in Six Months:
• 10% PoW: Six months after the initial transition, the PoW allocation will be further reduced to 10%.
• 40% PoS: The PoS allocation will increase to 40%, enhancing the platform’s sustainability and user participation.
This hybrid model is designed to leverage the strengths of both PoW and PoS, maintaining robust security while enhancing scalability and energy efficiency. Clore’s governance will continue to evolve, ensuring the platform’s sustainable growth and adaptability as the user base and transaction volume increase.
