Across the entire crypto ecosystem, few enthusiasts seem to hold a deep understanding of tokenomics.
What are tokenomics?
Tokenomics (token + economics) refers to a token’s utility and parameters, or monetary policies that can ultimately leverage a positive effect on its value over time. Common tokenomics include token supply, inflation schedule, distribution, token or fee burning, and staking mechanics.
Value accrual tokenomics just means that the tokenomics are designed in such a way to optimize for the token price to go up, or accrue value.
As crypto enthusiasts, this is what we want.
Believe it or not, many projects have horrible tokenomics. A common misconception is that deflationary tokenomics are generally good for price and inflationary tokenomics are bad for price. Not true. Bitcoin inflated from 0 BTC to more than 18,000,000 BTC over 12 years with high inflation earlier on. Few recognize that Bitcoin’s price went up faster when it was a younger network with a higher inflation rate. The effect of high inflation earlier on in the adoption phase often leads to massive price appreciation because multiplying user count proves to have a greater impact on value accrual.
Many token models have inflationary token models to incentivize demand (stake the token, earn rewards/yield). Similar to Bitcoin Mining, the newly minted Genius Tokens are only paid out to those who are mining for Genius Token. With Bitcoin Mining, you need to purchase expensive mining equipment, use lots of electricity, and trust a mining pool. With Genius Mining, all you need is the Genius Token and to create a dedicated pledge (promise) to generate passive income. Unlike with Bitcoin Mining, Genius Mining has no need for expensive equipment and useless computations that ultimately burn through electricity.
To be financially successful in the crypto market, one must intimately understand the blockchain assets they are dealing with, and this requires an unusual amount of financial and technological knowledge. Furthermore, understanding how to use multiple DeFi apps is mandatory. Not everyone has this knowledge, but everyone is seeking a better way to store their value, protect it from inequitable inflation, and amplify their value. The Genius Smart Financial Contract was designed to solve this need securely and with simplicity for the end user.
For centuries, Governments and Financial Corporations have sought to create financial products like this. The new internet created by blockchain technology makes this asset possible, and many blockchain assets have attempted to create such an asset. This Genius Smart Financial Contract (“GENI”) has built upon the successes of its predecessors and has learned from, and corrected upon, their mistakes. Imagine that you are holding an asset that pays you passive income and only increases in value over time. This is the intent of Genius.
Genius is similar to many existing assets and tools available in conventional finance:
- Banking Certificate of Deposit. Genius is like a “Certificate of Deposit” except it is on the blockchain, in the full control of the end user, and algorithms on chain (a basic Artificial Intelligence, i.e. A.I.) influence its reward structure.
- Stock & Dividend Model. Genius can also be thought of as similar in nature to a stock with a dividend payout. However, unlike a stock that generally pays out dividends in a nations’ currency, Genius disperses its “dividends” in Genius.
- Central Banking. One of the closest models Genius mimics is that of central banking. However, instead of issuing inflation via complex and hidden tools like quantitative easing, Genius issues its inflation consistently and only to miners/stakers instead of flowing to the people at the top of the financial system as is done in Central Banking. Genius is Decentralized Banking that is truly designed for the people.
Genius has been designed to mitigate human corruption and biased bureaucracy. Genius is the first hyper-yield A.I. blockchain Certificate of Deposit that intends to appreciate. Genius will be used by end users to generate passive income.
Functionally, and “under the hood” of the software engine, Genius is immutable, which means that the code cannot be changed. Genius has no admin key, meaning that it cannot be exploited by any human or privileged access. Furthermore, it has no “developer coins” and the users cannot be “rug pulled”. These are marketing-specific industry terms that mean value cannot be stolen from end users of the Genius Smart Financial Contract.
Genius is designed to enforce a positive, healthy, and democratic financial market by defending its value from typical negative market activities. This is done by incentivizing users to “lock away” their value for a length of time promised by the end user. For users who change their mind about their promises, their wealth is redistributed to the smart contract’s good actors over time until they re-engage their commitment. An A.I. layer continuously monitors the end users’ actions and reevaluates incentives for the benefit of end users who keep their promises. With Genius, your time (attention) and your intentions (promises) are reflected as value. In other words, Genius’s internal artificial intelligence constantly considers the end users’ actions, evaluates the likeliness that a user will break their promise(s), and adjusts the reward incentives to entice users to stick to their original promises. In layman’s terms: Genius is also designed to protect its users from the effects of market manipulation, negative market conditions, and human greed and impatience.
Fundamental Genius Tokenomics:
- Initial Supply: approximately 240 Billion (240,000,000,000) tokens. These will all be airdropped.
- At the maximum, an additional 14.5% of the Initial Supply, or 35 Billion (35,000,000,000) can be minted from holders of the Legacy GENI contract token. The Legacy contract’s Ethereum / BSC address is: 0xaac1abdb4fb7a91a0e2e036dfacc45f708ed6a39
- Approximate Annual Inflation: 4.236% (Φ³)
- Inflation Rewards are only given to miners. Inflation is paid out to stake holders on a daily basis.
- Deflation Mechanics (“Burning”) are triggered any time the end user modifies an Incentive Promise: harvesting rewards early, collecting their Stake early or late, auctioning a stake for value finality, etc. Burning does not affect the calculation for annual inflation.
- Genius Tokenomics are further detailed in the Genius White Paper such as Unique Math formulas to control penalties for end stakes, Dual Staking Policies- Simple and Advanced, Endstake AI Monitoring — An algorithm (AI) built into the contract constantly monitoring the state of end user commitments to adjust mining rewards in the case of a wave of commitment changes (e.g. such as stakers ending their stakes early during times of market dips), Built-in Auction Functionality — Ability to fulfill others’ promises (stakes/mines) and receive a reduced entry point, higher effective ROI, while also providing liquidity to those that would have to otherwise break their commitment, In Contract Treasury
