The following is a brief outline of the tokenomics of BlockX, including description of our native BCX token, its supply and distribution, use cases within the ecosystem and beyond, and the use of fund
BCX, the native token of BlockX, is the core of our ecosystem that powers all of the low-cost gas fees, rewards for Validators & Delegators, as well as dApp & protocol developers.
BCX is compatible with ERC20 and other Ethereum standards, in addition to powering our Community Pool, gas fees, and staking on the Ethereum Virtual Machine (EVM).
The Initial Supply of BCX tokens was 1 billion. However, we have recently completed a significant burning of 40%, or 400 million BCX that came with a campaign offering token holders a conditional bonus of 0.5x.
The basic distribution of the initial supply is as follows:
- 10% is for the BlockX Reserve
- 50% go to Initial Token Sales
- 15% is for Angel Investors
- 25% is set for the Team & Advisors
All gas fees within the BlockX ecosystem will be paid using BCX tokens, creating locality and high efficiency.
Delegators (stakers) on our network can earn an APY of up to 10% — depending on factors like choice of Validator.
Partners, affiliated projects, dApp & protocol developers can make BCX a form of payment in their own ecosystems.
Validators, who help keep the network running, will use BCX for charging fees on-chain.
BCX is currently running on the BlockX testnet version 8. The following are the key specifications of BCX users must know to start out in our ecosystem:
- Symbol: BCX
- Chain ID: 12345
- Polygon Contract Address: https://polygonscan.com/address/0x871531a59ef89c5262bcf58a80ab29f9711ea5a7
BCX inflation is fixed at 10% per year. The new tokens that get created will be distributed in the manner described below.
Inflation distribution of BCX:
- 80% of tokens go to Validators
- 10% of tokens go to Smart Contract Developers
- 10% of tokens go to Community Proposals
BlockX tracks and manages its ecosystem's gas the exact same way Ethereum does to ensure proper execution. Testnet 8 operations on the chain's store are represented as reads/writes.
Around 1% of gas fees will be burned per each transaction within the ecosystem.
Calculating Gas Fees
Gas fees are calculated using the sum of all gas in a from the sum of all gas consumed in a message execution. So, the fee is equivalent to the gas multiplied by the gas price.
- 30% of funds raised will be used on developing the BlockX platforms, as well as recruiting new people, and maintaining our entire infrastructure.
- 50% of funds will be used for business development. This includes token distribution to investors and partners related to the ecosystem and marketing, CeFi & DeFi institutions, licensing authorities, and more.
- 20% of funds will be used as a reserve in the case of an emergency or other factors.
We aim to make BlockX as decentralized as it can get, therefore Community Proposals and voting structures are essential parts of our ecosystem.
Community Pool – a wallet where we hold funds meant for democratized ecosystem development and improvement. These funds are allocated by collectively made decisions by the BlockX community.
Community Proposal – an on-chain document that offers certain changes to the ecosystem or parts of it. Developers can submit new structures, whose fate would be decided by the entire community.
Here are some Community Proposal aspects to note:
- 20% of tokens that come from block rewards will be sent consistently to the Community Pool
- If a community proposal is successful, funds from the Community Pool will be allocated for it
- If the proposed operation fails, the funds shall be returned to the Community Pool
To learn more about voting mechanics, follow the Community Pool FAQ section located in the Governance section of the BlockX documentation.
Validators are participants in PoS (Proof-of-Stake) networks who keep the blockchain running by creating new blocks and confirming transactions.
In the BlockX ecosystem, Validators receive the highest rewards of all participants for preserving the foundation of the chain. The BlockX ecosystem has a total inflation rate of 20%, and Validators earn 20% additional BCX tokens per annum on top of the gas fees paid by smart contract users.
Validators have the freedom of setting their own fees that Delegators (stakers) would pay to access nodes on the network.
Validators must first be approved by the BlockX team, as the minimum requirement of holdings is 100,000 BCX, and their computer hardware must be compatible.
Delegators, in PoS chains, are users who fill the role of stakers. They must choose a Validator to help delegate their tokens for node access, and pay a certain amount in fees.
Like validating, delegating can be configured and started using either a CLI on users’ personal computers or a browser-based GUIs built by BlockX that connect to their wallet and allow them to set delegation parameters, then displaying potential earnings.