ONINO Docs
  • Introduction to ONINO
    • Welcome to ONINO
    • The Tokenization Opportunity
    • ONINO Blockchain
  • ONINO Tokenization Platform
  • ONINO Developer Platform
  • Tokenomics
    • Incentive and Mechanism Design
    • Token Distribution & Emission Schedules
  • For Developers
    • Building on ONINO
    • Mainnet Configuration
    • Testnet Configuration
    • Solidity Compiler Versions
    • Nodes & Validators
      • For Validators & Node Operators
      • Validator Ramp-Up Phases
    • Developer Platform Overview
      • Quickstart Guide
      • Overview
      • Templates
      • Brainstorming AI
      • Code Generator AI
      • Contract Import
      • Development Studio
      • Deployment Suite
      • Smart Contract API
      • Integration AI
      • Contract Manager
      • How-To: Using AWS KMS wallets with the ONINO Smart Contract API
      • Smart Contract Templates
        • Template Overview
        • Creating Tokens
          • Token with Fixed Supply
          • Token with Mintable Supply
        • Creating NFTs
          • Standard NFT
          • NFT with fixed Supply
        • Create your Custom Project
  • For Users
    • Welcome to ONINO
    • Staking Guide
    • Token Upgrade Process
    • Getting Started with ONINO
      • How to add the ONINO Network to your Wallet
      • How to create a Wallet
    • The ONINO Tokenization Platform
      • Walkthrough & Guide
  • FAQs
    • General Blockchain FAQs
    • What is tokenization?
    • ONINO General FAQs
    • Learn more about blockchain
      • How to use different blockchain networks?
      • What is the Ethereum Virtual Machine (EVM)?
      • What is a Smart Contract?
    • What are Crypto Tokens & Coins
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  • Introduction
  • Overview of the ONI Token
  • Incentive and Mechanism Design
  • Supply Mechanisms
  • Punishment Mechanisms for Bad Actors

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  1. Tokenomics

Incentive and Mechanism Design

The economic incentive and mechanism design behind the ONI token was created to align sustainable growth with the necessary economic incentives for all participants on the ONINO blockchain.

The ONI token serves as the native utility token of the ONINO Main-Chain, playing a pivotal role in securing the network, facilitating transactions, and enabling the operation of Sub-Chains and the ONINO Tokenization Platform. This paper provides an extensive overview of the long-term dynamics, incentive structures, mechanism design, and supply mechanisms associated with the ONI token. It also examines the punitive measures in place to deter and penalize malicious actors within the network.


Introduction

Blockchain technology has revolutionized the way digital assets are managed and transferred. Central to this innovation is the design of native tokens that not only facilitate transactions but also incentivize network participation and ensure security. The ONI token is at the heart of the ONINO blockchain ecosystem, meticulously crafted to align sustainable growth with the economic incentives of all participants.

Overview of the ONI Token

Role and Utility

The ONI token is integral to the ONINO Main-Chain, serving multiple essential functions:

Transaction Fees

ONI is used to pay for gas fees, enabling smooth and efficient transactions across the network.

Network Security

Validators stake ONI tokens to participate in the consensus mechanism, ensuring network integrity.

Sub-Chain Operations

Operators can rent Sub-Chains by staking ONI tokens, facilitating specialized applications and services.

Tokenization Platform Access

ONI provides benefits on eligible tokenization projects within the ONINO ecosystem.

Fee Redistribution

ONINO plans to establish a fee redistribution in the future. Apps that reach a monthly volume threshhold of over 500.000 transactions will be eligible for a up to 20% fee redistribution from collected gas fees.

Preliminary Token Exchange

Initially issued on the Binance Smart Chain and Ethereum Network, the preliminary ONI tokens in circulation are upgradeable at a 1:1 rate upon the launch of the ONINO Main-Chain, ensuring a seamless transition for existing holders.

Incentive and Mechanism Design

Economic Incentives

The design of the ONI token economy is centered around aligning the interests of all network participants:

  • Validators: By staking 35,000 ONI tokens, validators are incentivized to act honestly to earn rewards and maintain network security.

  • Sub-Chain Operators: Operators stake 50,000 ONI tokens to run Sub-Chains, promoting network expansion and specialized service offerings.

  • Fee Redistribution: The fee redistribution program will be established to encourage builders to create valuable applications and smart contracts.

Validation and Staking

Staking serves as a commitment mechanism:

  • Validators lock up a significant amount of ONI tokens, which can be forfeited in case of malicious activity.

  • Validators earn rewards proportional to their stake and contribution to network consensus, promoting active participation.

Sub-Chain Operations

Sub-Chains enable scalability and customization:

  • Operators must stake 50,000 ONI tokens, aligning their success with the health of the Main-Chain.

  • Sub-Chains can implement their own fee structures, with a portion of fees potentially flowing back to the Main-Chain, enhancing the overall ecosystem.

Supply Mechanisms

Token Supply Through Validation

The ONI token supply is influenced by the network's validation process:

  • New ONI tokens are minted per block as rewards for validators, providing an incentive for network security.

  • The token emission rate is designed to balance rewarding participants and preventing excessive inflation, maintaining token value over time.

The locked portion of the initial pre-minted maximum supply of 100M ONI tokens will be burned during migration, allowing the protocol to mint tokens per block as the validator rewards with diminishing returns.

Punishment Mechanisms for Bad Actors

Ensuring network integrity requires robust deterrents against malicious behavior:

Validators
  • Validators who act dishonestly or attempt to compromise the network can have a portion or all of their staked ONI tokens slashed (confiscated) by the protocol.

  • Persistent bad actors can be removed from the validator set, losing future reward opportunities.

Sub-Chain Operators

  • Operators who misuse their Sub-Chain or attempt to harm the Main-Chain risk losing their staked ONI tokens.

  • The right to operate a Sub-Chain can be revoked, impacting the operator's ability to generate revenue from their services.

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Last updated 1 month ago

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