CEO Statement on Total AKT Token Circulation
- Oct 20, 2020
- 4 min read
Greetings Akashians, I hope you’ve been staying safe and well!
Since 2016, when my cofounder and CTO Adam Bozanich and I started building Akash Network, we staked our lives and our reputation to enable developers and organizations around the world to have greater access, freedom, and flexibility to build and grow.
Together, we lead a small global team of experienced technology platform and open source experts, and we’ve been working to materialize The Unstoppable Cloud, the first viable alternative to centralized cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure.
In the past month, we’ve gotten much closer to realizing our vision for Akash’s decentralized cloud marketplace with the launch of Akash Mainnet 1 and our Initial Exchange Offering (IEO) on BitMax--two critical milestones for securing and growing our platform.
We recognize that this is a marathon and not a sprint, and our success depends on the continued support of Akashians around the world who believe in our vision.
Based on feedback we’ve received from our global community following the IEO, we’ve since realized that there was confusion around how staking rewards accrued, and how the staking rewards affect total token circulation.
We would not do anything to jeopardize your trust, and our team has taken this feedback very seriously.
First, we take full accountability for not providing more communications and information on how our staking rewards impact the total circulating supply.
Clarification on Total Akash Token (AKT) Supply
To clarify several points around token supply since our IEO:
- On Akash Network, AKT holders stake AKT to secure the Akash PoS network and in exchange earn rewards.
a. In the early days of the network, when meaningful income is not yet realized from network utilization, stakers earn ~54% APR rewards from inflation (new tokens minted).
b. The ~54% APR staking reward starts accruing at Mainnet 1 launch.
c. This APR is subject to change as we aim to lower inflation as the network matures. We will likely submit the first governance proposal change to this before the end of October 2020.
- On September 25th, BitMax announced our IEO on the same day our Mainnet 1 launched. The circulating supply at the Genesis block was 2.8M AKT with 54% APR as staking rewards announced, as reflected in BitMax promotions that day.
- To provide more information to prospective investors, we launched and announced our AKT Token mini-site with our unlock schedule included.
- On October 16th, when our listing went live on BitMax (Block #284,500), our total token in circulation of 5,651,695 AKT included 2,800,000 AKT unlocked at Genesis and 2,851,695 AKT from accrued Staking Rewards.
- As of today (Block #342,312), we have a total of 6,239,818 AKT in circulation, including 2,800,000 AKT unlocked at Genesis and 3,439,818 AKT from accrued Staking Rewards.
- As of this post's writing (Block #342,467), Akash has a staking ratio of 85.10%, meaning 88.03M of AKT is locked up for at least 21 days:
a. Akash has one of the highest bonding ratios in the Proof-of-Stake and highest in the Cosmos Ecosystem.
b. For comparison, Band Protocol has an 81.28% staking ratio, and Kava has a 73.93% staking ratio.
How We’ll Improve Our Communications About AKT
Going forward, we are committed to ensuring clearer communications and education around our token economics:
- We’ve updated our AKT Token mini-site to include a more dynamic and detailed unlock and circulating supply schedule for your reference.
- We’ll also provide and share a biweekly token supply and rewards update from our CFO Cheng Wang, on The Unstoppable Blog.
- For those new to staking, we’ll be releasing a guide on how to stake your AKT and earn our generous token rewards.
As I’ve mentioned before, we couldn’t have achieved our Mainnet 1 and BitMax IEO milestones without your support. We’re excited to share more soon about Phase 3 and Mainnet 2--the realization of Akash DeCloud aka The Unstoppable Cloud.
I’m grateful for your belief in our vision, and for your patience and understanding as we improve our communications efforts.
I invite you to join our Telegram and continue to give us feedback so we can improve our communications, product, and community.