Will there be unlimited issuance of Elastos (ELA) coins?

Elastos (ELA) is a native cryptocurrency with a capped maximum supply, subject to ongoing issuance and adjustments based on block rewards, burn mechanisms, and ecosystem milestones.

Jan 05, 2025 at 12:47 pm

Key Points:

• Elastos (ELA) is a cryptocurrency native to the Elastos ecosystem, a blockchain-based platform for decentralized applications (dApps).
• ELA serves multiple roles within the Elastos ecosystem, including governance, transaction fees, and ecosystem development.
• While ELA does have a maximum supply, the exact amount is subject to change based on certain factors and milestones.

Understanding Elastos (ELA) Coin Issuance:

• Maximum Supply:

  • ELA has a maximum supply capped at approximately 33 million coins.

• Initial Coin Offering (ICO):

  • During the ELA ICO in 2018, 27 million coins were issued, distributed to token purchasers.

• Ongoing Issuance:

  • Additional ELA coins are issued through block rewards to operators of Super Nodes and Carrier Nodes within the Elastos network.

Factors Influencing Issuance:

• Block Rewards:

  • Elastos nodes receive ELA rewards for processing transactions and maintaining the network.

• Burn Mechanism:

  • A portion of ELA transaction fees are burned, reducing the circulating supply over time.

• Ecosystem Fund:

  • 10% of ELA transaction fees are allocated to an ecosystem fund, which can be used to support developer grants and other initiatives.

Future Issuance:

• Milestone Thresholds:

  • The rate of ELA issuance through block rewards is adjusted based on specific milestones achieved by the Elastos ecosystem.

• Governance Decisions:

  • The ELA community can propose and vote on changes to the issuance scheme through the Elastos DAO.

FAQs:

• Will there ever be more than 33 million ELA coins?

  • Theoretically, it is possible that the maximum supply could be increased through a community vote.

• Can I participate in running an Elastos node and earn ELA rewards?

  • Yes, you can operate a Super Node or Carrier Node on the Elastos network and be eligible for block rewards. However, requirements and technical expertise are necessary.

• How does the burn mechanism affect the long-term value of ELA?

  • By reducing the circulating supply, the burn mechanism can potentially increase the scarcity and value of ELA coins over time.