What is the issuance and circulation of LOOM coins?

LOOM Network's native LOOM token facilitates transactions and supports the platform's scalable, secure, and interoperable capabilities for dApp development.

Dec 01, 2024 at 01:20 pm

Understanding LOOM Coin: Issuance and Circulation

In the realm of blockchain technology, LOOM Network stands out as a robust platform for developers to build scalable, secure, and interoperable dApps. At the core of this platform lies LOOM, the native token that facilitates transactions and ensures the network's stability.

Issuance of LOOM Coins

1. Initial Coin Offering (ICO): LOOM's ICO took place in 2017, raising approximately $15 million. During this offering, a total of 500 million LOOM tokens were issued, representing 50% of the total supply.
2. Distribution and Tokenomics: The initial token distribution allocated 35% of the tokens (175 million LOOM) to the public, 25% (125 million LOOM) to the LOOM Network team, 20% (100 million LOOM) to investors and advisors, and 20% (100 million LOOM) to the LOOM Network Foundation.

Circulation of LOOM Coins

1. Total Supply: The total supply of LOOM coins is capped at 1 billion, ensuring scarcity and potential price appreciation over time.
2. Circulating Supply: The circulating supply of LOOM tokens continuously fluctuates as users trade, stake, and participate in network activities. As of June 2023, approximately 400 million LOOM tokens are in circulation.
3. Burning and Repurchase: LOOM Network implements a burning mechanism to reduce the token supply and maintain its value. A portion of transaction fees collected from DApp usage is used to repurchase and burn LOOM tokens.
4. Staking and Governance: LOOM holders can stake their tokens to secure the network and earn rewards. Staking involves locking up tokens for a specified period, contributing to the network's security and earning staking rewards.
5. Transaction Fees: LOOM tokens are used to pay transaction fees on the LOOM Network. DApp developers can set their own transaction fees, providing flexibility and cost-effectiveness for users.
6. Utility and Use Cases: LOOM coins serve various use cases, including paying for DApp services, participating in governance votes, and accessing exclusive network features. LOOM's versatility enhances its utility and drives demand.