tokenomics

The tokenomics of CTSI is designed to create economic incentives for various participants in the Cartesi ecosystem. Users can earn CTSI rewards by staking, participating in governance, or contributing to the platform's development, which promotes active participation and helps protect network security.

The tokenomics of CTSI supports the long-term growth and sustainability of the Cartesi platform, while providing incentives for active participation and ensuring the value of the token in the ecosystem. Prudent management of token supply and distribution is crucial to the success of the platform.

Total Supply and Cap

The maximum fixed supply of CTSI tokens is capped at 1 billion. This means that CTSI tokens will not be minted beyond this limit, creating token scarcity. This is a critical step in protecting the value of CTSI in the Cartesi ecosystem.

Current circulating supply and trading volume

The circulating supply refers to the portion of the total supply that is freely tradable in the market. As of 2024, about 742.6 million CTSI tokens are in circulation. The remaining tokens are either locked up or kept for future use according to the distribution plan.

Token Distribution

The distribution of CTSI tokens is designed to support the development of the Cartesi ecosystem and incentivize various stakeholders. The distribution is as follows:

• Foundation Reserve:A significant portion of the total supply (about 40.22%) is allocated to the Cartesi Foundation. These tokens are gradually unlocked over time and are used for research and development, ecosystem growth, and other foundational activities.
• Community and Ecosystem Incentives:Some tokens are reserved for community incentives and ecosystem growth. These tokens are used to incentivize developers, community members, and other contributors who help expand and adopt the Cartesi platform.
• Team and Advisors:A portion of the CTSI tokens are allocated to the founding team and early advisors. These tokens are typically subject to vesting schedules to align the team's interests with the long-term success of the project.
• Staking and Validation:A portion of the token allocation is used for staking purposes, allowing users to lock their CTSI tokens to participate in the network's consensus mechanism and earn rewards. This ensures the security and decentralization of the network.
• Market Making & Liquidity:Some tokens are reserved for market-making activities to ensure liquidity in the trading market. This allocation helps stabilize the token price and provides sufficient liquidity for users to trade CTSI on exchanges.

Vesting and unlocking plans

The CTSI tokens allocated to the team, advisors, and foundation typically follow a vesting schedule. This arrangement ensures that the tokens are gradually released instead of being flooded into the market all at once, thus avoiding drastic fluctuations in token price. This progressive unlocking mechanism is designed to promote the long-term sustainable development and robust growth of the Cartesi ecosystem.

Highlights

• Fixed Supply: The maximum supply limit of CTSI is 1 billion tokens, ensuring scarcity and protecting its value in the Cartesi ecosystem.
• Current circulating supply: As of 2024, there are approximately 742.6 million CTSI tokens in circulation, with the remainder reserved for future use according to the distribution plan.
• Token Allocation: CTSI token allocation is used for various purposes including Cartesi Foundation, community incentives, team and advisors, staking and liquidity activities.
• Vesting plan: Tokens allocated to team members, advisors, and foundations are subject to vesting plans to prevent market flooding and promote long-term ecosystem stability.
• Incentives and Governance: CTSI tokens are used for staking, transaction fees, and governance, incentivizing active participation and empowering users with a voice in the platform's development.