Thread by @NexaMoney

$NEXA Tokenomics are modelled for utility

It is strategically structured to be direct value to the $NEXA ecosystem and support massive exponential growth 🌎

Supply schedule mirrors directly to $BTC

Why did we choose this model?

A 🧵

23/

Over time we had a lot of questions from the community how the Tokenomics of $NEXA work and what is the user benefit?

To put it simple, Nexa’s economic model is identical to $BTC

Built for utility, mirroring a proven, tried and tested model

1/

Max supply = 21T
Issuance = 2.4T
140 Years for full issuance
Halvening = Every 4 years
1st Halvening = June 2026
Current block reward = 10M NEXA
Block time = 2 minutes
Schedule Mirrors $BTC

$NEXA will only ever have 21T and each NEX can be divided into 100 parts.

Nexa release schedule is carefully calculated, max supply won’t be reached for 140 years

This provides enough supply for the world’s economy even when all 8 billion of us are using it.

2/

$NEXA is a financial blockchain created to support and facilitate a new digital economy.

Its capabilities is vast, and $NEXA is direct value and use case to the ecosystem.

3/

2.1 quadrillion (2,100,000,000,000,000) satoshis will have been mined in roughly 140 years time.

4/

Why Trillion of coins?

Great question we hear, that has a fairly simple answer:

The supply is the same as $BTC in Satoshis, but bigger supply in our primary trading unit to only have two decimal places.

This a thought out and calculated decision.

5/

We will never deal with sub 2 decimal values of $NEXA (similar to fiat)

Nexa is designed to stay at lower price value compared to USD so that when people transact with Nexa you are doing it in whole round numbers

6/

We only have two decimal points, for instance, you could buy a cup of coffee with 500 NEX, not something like 0.00018 BTC

7/

Circulating supply over time shown in a graph:

8/

Although the economics are actually quite different in-terms of the planned velocity of money and demand, people ask

Isn't there a load of NEX being minted right now compared to how much has already been mined?

Well, let’s look at the numbers and the context of the network

9/

As per todays date, roughly 2.4T NEX is in existence

Every year until the first halvening there will be roughly 2.6 trillion new NEX mined

Per block, 10 million NEX are released as the block reward and these are published to the network roughly every 2 minutes

10/

One way to look at this is, ‘in the next 3 months, what percentage of NEX will be mined compared to all previously mined NEX’.

This will give us a picture of how the supply will change relative to the existing supply over time.

Have a look at this graph:

11/

As can be seen from this graph, the percentage change per 3 months decreases rapidly over time from 50% now to about 6% in about 4 years time.

This would feed the argument that currently a lot of new coins are being minted.

12/

Remember, in the chart above we are just looking at supply.

Another factor is demand. 📈

It’s important to keep in mind that $NEXA being very new, means it has only reached a very small number of people.. so far

13/

What that means, is that we see the same (but opposite) dynamic in terms of new users and demand.

Growth comes with Community. 🌎

$NEXA community is unique and powerful.

14/

The graph below shows what happens with community growth at a linear rate from 2,000 members to 15,000 members in about 4 years from launch.

These are hypothetical numbers, we are exceeding these numbers at a rapid pace.

15/

You can see that the chart looks identical, but this is not what we are aiming for.

This is very conservative.

We aim to leverage the community and our resources to reach ever larger numbers of people to grow the network rapidly.

This chart looks very different..👇🏼

16/

^This chart is what we are really aiming and positioned for

Massive, exponential growth like we have seen with $BTC

But there is a huge factor that is missing in the above models, and that is price.

17/

The price itself places a huge role in how the supply affects the… price.

Yep, that’s the true complexity of economics creeping in.

The price recursively impacts the price. 🧠

18/

Inflation; if you look at the average POS it has tons of unlocks the first 3-4 years with pre-sales, seed, team wallets and all that.

With $NEXA you have "unlocks" by miners that hodl and if not, sell in parts to cover costs, bought by the market.

19/

First 4 years there will be roughly 10T-ish coins coming into supply, if you consider the total supply of 21T, this means you could read the inflation rate as ~10%

Now ask yourself, how big are the odds, that the $NEXA network grow significantly more than 10% a year? Right

20/

In Summary, there is a certain amount of newly minted ‘value’ (fiat price * number of NEX) being minted every 2 minutes and the amount of people willing to come and buy up those new coins and any other coins available on the market will determine how price is impacted.

21/

Long written form of $NEXA Supply Schedule:

22/

nexa.org/case-studies-d…