What is the issuance and circulation of NXT coins?

The initial issuance of NXT coins in 2013 via PoS resulted in 1 billion coins being created, with 200 million allocated to founders and 500 million distributed to early adopters and contributors.

Oct 03, 2024 at 04:00 pm

NXT Coin Issuance and Circulation

1. Initial Issuance

NXT coins were initially issued in November 2013 through a proof-of-stake (PoS) blockchain algorithm. A total of 1 billion NXT coins were created during the genesis block.

2. Coin Distribution

The initial distribution of NXT coins was as follows:

• Founders: 20% (200 million NXT)
• Early adopters and contributors: 50% (500 million NXT)
• Remaining coins distributed through PoS mining: 30% (300 million NXT)

3. Current Circulation

As of June 2023, the total circulating supply of NXT coins is approximately 990 million NXT. The founders' coins are locked for a period of 10 years after the launch of the blockchain, and a small portion of the coins are held by the NXT Foundation for marketing and development purposes.

4. NXT Inflation

The NXT blockchain has a built-in inflation mechanism that creates new NXT coins to reward miners. The inflation rate is designed to slowly decrease over time, starting at 5% annually in the first year and decreasing to 1% annually after 5 years.

5. Coin Burning

To control inflation, a portion of the transaction fees collected on the NXT blockchain are burned (removed from circulation). This mechanism helps to reduce the total supply of NXT coins over time.

6. Coin Ownership

According to the NXT Explorer, the top 100 NXT wallets hold approximately 60% of the total circulating supply. This indicates a relatively concentrated distribution of NXT coins.

Summary

NXT coins were initially issued in 2013 through a PoS blockchain and distributed to founders, early adopters, and miners. The current circulating supply is approximately 990 million NXT, and the NXT blockchain has a built-in inflation mechanism and coin burning mechanism to control the supply. The distribution of NXT coins is relatively concentrated, with the top 100 wallets holding a significant portion of the total supply.