Tokenomics
How does the HYDRON token supply work?
There is not a fixed total value of HYDRON tokens, however the token supply is limited due to the tokenomics behind the Hydron protocol. Only 777 tokens were initially minted upon creation and the only way new tokens are minted is through dividend payouts. The token amount that is paid out on each dividend is decreased by 3% every 30 days. Because of the mathematics, the token supply will never increase past 7,777,777.77 repeating. This can be seen in the following graph:
How does HYDRON maintain value?
Since the dividend payouts are decreasing forever by the Dividend Reduction Rate (DDR), the HYDRON token will become scarcer as time goes on. This principle is used in the well-known cryptocurrency titan Bitcoin. A phenomenon known as "halving" happens on the Bitcoin network every 4 years. This reduces the amount paid out to miners by half making Bitcoin more scarce and resulting in a increase in value. Below is the graph of the dividend payout amount for HYDRON over a 20 year period.
For more information on Bitcoin's tokenomics, go to their community wiki.
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