What is the issuance and circulation of Virtuals Protocol (VIRTUAL) coins?

VIRTUAL's issuance and circulation mechanism ensures a balanced distribution, facilitates network participation, governance, and dApp development, while the capped supply and controlled inflation rate maintain the value and stability of the coins.

Dec 06, 2024 at 10:35 am

What is the Issuance and Circulation of Virtuals Protocol (VIRTUAL) Coins?

1. Introduction

Virtuals Protocol (VIRTUAL) is a decentralized blockchain platform designed to facilitate the creation and deployment of decentralized applications (dApps). The VIRTUAL token is the native cryptocurrency of the Virtuals Protocol ecosystem, serving as a means of network participation, governance, and utility.

2. Issuance of VIRTUAL Coins

VIRTUAL coins are issued through a process called mining. Miners use specialized hardware to solve complex mathematical equations to validate transactions on the Virtuals Protocol blockchain. As a reward for their efforts, miners receive newly issued VIRTUAL coins.

The issuance of VIRTUAL coins is controlled by a pre-defined algorithm that gradually decreases the block reward over time. This mechanism is designed to control the rate of inflation and ensure the long-term sustainability of the Virtuals Protocol ecosystem.

3. Circulation of VIRTUAL Coins

Once issued, VIRTUAL coins circulate within the Virtuals Protocol ecosystem, facilitating various transactions and interactions between network participants. These include:

• Network Fees: Users pay VIRTUAL coins to cover transaction fees on the Virtuals Protocol blockchain.
• Governance: VIRTUAL coin holders have voting rights in the Virtuals Protocol decentralized autonomous organization (DAO), allowing them to participate in decision-making regarding the platform's development and governance.
• Staking: Users can stake their VIRTUAL coins to earn rewards and support the security of the network.
• dApp Development: Developers can use VIRTUAL coins to create and deploy dApps on the Virtuals Protocol platform, leveraging its scalability and interoperability features.

4. Supply Dynamics

The total supply of VIRTUAL coins is capped at 1 billion. The current supply in circulation is approximately 350 million, with the remaining coins scheduled to be issued through mining over time.

The issuance schedule and the controlled inflation rate play a crucial role in maintaining the value and stability of VIRTUAL coins within the ecosystem.

5. Distribution of VIRTUAL Coins

The distribution of VIRTUAL coins is as follows:

• Mining Rewards: 60%
• Ecosystem Development: 20%
• Founders and Team: 10%
• Initial Coin Offering (ICO): 10%

The distribution ensures a balanced allocation of coins to the network participants and the organization responsible for its development and growth.

6. Acquisition of VIRTUAL Coins

VIRTUAL coins can be acquired through the following channels:

• Exchanges: VIRTUAL coins can be traded on cryptocurrency exchanges such as Binance, Huobi, and Uniswap.
• Mining: Individuals with suitable hardware can participate in mining to earn VIRTUAL coins.
• Staking: Users can stake their VIRTUAL coins in supported platforms to earn rewards and contribute to the network's security.

Disclaimer: The information provided in this article is solely for informational purposes and does not constitute financial advice. Consult with a qualified financial advisor before making any investment decisions.