What is the circulation and circulation of EGLD coin

What is the Circulation and Circulation of EGLD Coin?Introduction

EGLD, the native token of the Elrond Network, serves as fuel for various network operations, including transaction fees, gas costs, and rewards for validators. Understanding its circulation dynamics is crucial for gauging the coin's supply and demand characteristics.

Circulating Supply

The circulating supply of EGLD represents the total number of coins currently in circulation. It is calculated by subtracting the number of EGLD locked in staking or other non-circulating mechanisms from the total supply. As of February 2023, EGLD's circulating supply stands at approximately 24 million coins, representing roughly 45% of the total supply.

Total Supply

The total supply of EGLD is fixed at 31.4 billion coins. This predetermined issuance limit ensures that EGLD's supply does not inflate indefinitely, potentially mitigating the risk of dilution over time. The distribution of EGLD's total supply is as follows:

• 20%: Circulating supply (released gradually over time)
• 25%: Staking and rewards
• 17.5%: Team and advisors
• 17.5%: Marketing and growth
• 12.5%: Strategic partnerships
• 8%: Research and development

Token Distribution

EGLD's initial distribution occurred in September 2020, with tokens distributed through a combination of a public sale, private sale, and strategic partnerships. The public sale accounted for 20% of the total supply, while the private sale and strategic partnerships raised approximately 45% and 12.5%, respectively. The remaining 22.5% was reserved for the team, advisors, and marketing efforts.

Circulation

EGLD enters circulation through various channels, including:

• Block rewards: EGLD is distributed as rewards to validators who operate nodes and secure the Elrond Network.
• Transaction fees: Users pay a small fee in EGLD for each transaction processed on the Elrond Network.
• Staking: Users can stake their EGLD to earn rewards and contribute to the security of the network. Staked EGLD is not considered part of the circulating supply.

EGLD is consumed primarily through:

• Transaction fees: EGLD used for transaction fees is burned, reducing the total circulating supply.
• Staking: EGLD is locked in staking contracts, taking it out of circulation.

Conclusion

EGLD's circulation dynamics are crucial for understanding the coin's supply and demand characteristics. The circulating supply, which represents approximately 45% of the total supply, has grown gradually over time as more EGLD is distributed through block rewards and other channels. The token distribution ensures that EGLD is widely distributed among stakeholders, including public investors, the team, and strategic partners.