ECROX Tokenomics

The ECROX token supply adheres to a mildly inflationary model, with new tokens issued as block rewards every 3 seconds on Ecrox. Validators who create blocks and their delegators receive these rewards, ensuring the security of the network's consensus mechanism.

Currently, the reward amount per block is calibrated such that the ECROX total supply increases by approximately 5% annually. This inflationary model was chosen initially to provide a predictable revenue flow for validators and delegators. Relying solely on transaction fees could lead to unpredictable returns due to fluctuations in network activity.

Moreover, substantial block rewards help maintain low transaction fees, fostering Ecrox adoption.

A proposal to reduce ECROX inflation is under community discussion. If approved by validators, it will lower the annual inflation rate to 2% starting from the network's third year. Subsequent years will see a fixed amount of tokens issued. This proposal aims to balance inflation with sustainable network growth.

You can access the proposal text and ongoing discussion on [e-mail]