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Tokenomics

The total supply of NCN tokens is capped at 3 billion tokens. This fixed supply ensures that token distribution remains predictable and prevents any ecosystem-wide inflation.
Creation of Tokens: NCN tokens are generated via the mining process, in which miners validate new blocks on the Neurochain AI network. As compensation for their contribution to the network's security and consensus, miners are rewarded with newly issued NCN tokens.
Distribution of Tokens: The distribution of NCN tokens is conducted primarily through centralized exchanges (CEX) as part of the company's efforts to raise capital. Following is the breakdown of token allocation:
  1. 1.
    Ecosystem & Community Incentives: 42% reserved to incentivize and reward active Neurochain AI ecosystem participants.
  2. 2.
    Foundation Treasury: 20% allocated to fund the development, operations, marketing, and growth of Neurochain AI.
  3. 3.
    Core Contributors (Team & Validators): 17% allocated to strategic partnerships that are fundamental in building Neurochain AI.
  4. 4.
    Investors: 17% set aside for raising capital when Neurochain AI is ready for growth beyond the initial launch.
  5. 5.
    Strategic Investment Round: 1% allocated to strategic investors before the launch to attract the right attention, increase brand awareness, and onboard the initial community.
  6. 6.
    Advisors: 3% reserved to attract high-profile advisors with relevant experience in the fields of AI, infrastructure, business development, and key partnerships.
While Neurochain AI does not conduct an ICO or IDO, the project intends to hold an IEO on select centralized exchanges. The IEO will provide an opportunity for interested participants to acquire NCN tokens directly from the exchanges.
NCN is the native coin of the Neurochain AI platform and is the main currency for all the processes used to:
  • Process all transactions and state changes on the blockchain.
  • Cover incentives and gas for AI inference and training network.
  • Enable building and deploying of smart contracts and decentralized applications (dApps).
  • Run and interact with blockchain applications by users and developers.
Token Burning: Since this is an EVM blockchain, it has a built-in burning mechanism, making the early-stage pre-minted supply deflationary by default. Thus, NCN is burnt like ether until mining starts with the launch of a training network when new coins are produced on blockchain by providing authoritative proofs from AI validators within mining blocks.
Governance: Currently, there is no governance policy for the NCN community outlined in the whitepaper. Nonetheless, the Neurochain AI team may consider implementing governance mechanisms in the future to enable community participation in decision-making processes and to ensure the decentralized and inclusive nature of the project.
Exchange Listings: Neurochain AI is actively pursuing potential listing opportunities for the NCN token on various cryptocurrency exchanges. Discussions have taken place with exchanges such as Kucoin, Gate.io, Bitfinex, BitGet, OKX, Bithumb, and MEXC. These exchange listings are intended to increase token liquidity, broaden token accessibility, and expand trading opportunities for users and investors.
Interoperability: More than gas, NCN can be used in DeFi solutions through Wrapped ERC20 implementation (DEX, Lending, and similar). This enables interoperability between the Neurochain AI ecosystem and other chains, allowing for the transfer and interaction of assets across networks.
Staking: NCN is used as a staked asset in the proof of stake AI validator network to relay and validate worker messages. It is also used as a staked asset in early staking contracts to incentivize early adopters through an airdrop point system.