- What should I do to participate in early sales, like private or seed sale?
- Is SHM stake fixed per node, like 32 Eth per validator in Ethereum?
- Since the community will completely run Shardeum, shouldn't we allocate some % of coin distribution to the community?
- What are the high level details of Shardeum’s tokenomics?
- What will happen to the Shardus (ULT) token once Shardeum goes live? Will it be absorbed by Shardeum?
What should I do to participate in early sales, like private or seed sale? #
You may write to email@example.com. The team will respond to your inquiry. Do ensure to include as much info and background as possible.
Is SHM stake fixed per node, like 32 Eth per validator in Ethereum? #
Yes, some fixed amount of SHM will need to be staked (and could be slashed for misbehaving) to become a validator, although it won’t be too high for an average validator to participate. We really want to democratize the process of operating a node on blockchain. We will announce the stake amount ahead of mainnet.
Since the community will completely run Shardeum, shouldn’t we allocate some % of coin distribution to the community? #
The Shardeum network will have a native coin called Shard with a ticker symbol of SHM. The coin is expected to be mined by the validator and archive nodes as reward for providing resources to the network and keeping it secure. The coin will be used for paying gas fees associated with executing transfer transactions and smart contract execution on the Shardeum network. The majority of SHM coins, i.e. 51%, is reserved for node mining. We further have 5% coins allocated for airdrops & ecosystem. This is planned keeping in mind that decentralization and community are central to the network. Shardeum team will be allocated 15% of native coins. Tokenomics and other related details are available in the project’s whitepaper.
What are the high level details of Shardeum’s tokenomics? #
Max supply: 508 million SHM
- 51% Community – reward to nodes; validators, archive and standby servers
- 18% Sale – 3 month cliff then 2 years linear vesting
- 15% Team – 3 month cliff then 2 years linear vesting
- 11% Foundation – unlocked at Token Generation Event (TGE)
- 5% Ecosystem & Airdrops – unlocked at TGE
It is important to note that Shardeum tokenomics has to be unique like the network itself since it scales linearly with the help of standby nodes concept.
Keeping that in mind, Shardeum launched SHM tokenomics model and dashboard with a live demo on 19th April 2023 after a lengthy research. The dashboard will allow community/validators to run node reward simulations and calculate the node income on the website page here – https://shardeum.org/shm-tokenomics/. You can further report any bugs/request for new features as well on the website.
This is an MVP of the SHM issuance policy which basically demonstrates how Shardeum Foundation/DAO (FDAO) will try and ensure there’s always an equilibrium level of SHM supply (less than the max supply), low GAS fees forever, and profitability for validators irrespective of the price and transaction action. Issuance policy will be refined with the help of community through the mainnet launch.
What will happen to the Shardus (ULT) token once Shardeum goes live? Will it be absorbed by Shardeum? #
ULT will continue to coexist with SHM. To those who are unaware, Shardus will serve as the protocol layer of Shardeum and it has been in active development since at least 2017. We encourage you to read our whitepaper for more details regarding this.