Three minutes to master ORION economic model

To make a blockchain long-term, several elements are essential:

· Strong technical support

· Balanced economic model

· Landed commercial application scenarios

Among them, the economic model is the most important key when a chain starts and develops.

The structure of ORION’s economic model

ORION uses an economic model that is fair and transparent to the community, investors, and miners, aims to maintain the long-time movement of ORION, which is divided into two modules:

Block Reward

ORION’s block reward is set to be “simple” and “crude”, with no cap on total volume, no attenuation model, and no complex release model. Each block rewards one ORI. According to the rules, ORION produces a block every 6s, so there can be 14,400 blocks a day, which means that will be 14,400 ORI for a day on the chain. Since there is no attenuation and no upper limit, the total amount of ORI will increase at a constant rate of 14,400 ORI per day.

One would argue that an economic model based on inflation is doomed to fail: non-decreasing block reward, combined with unlimited issuance will prevent ORI prices from rising.

But we can refer to Polkadot, the same NPoS, the same model of unlimited issuance, and the price of DOT is still considerable.

The price trend of Dot

Polkadot believes that PoS will encourage more and more tokens to be locked in the network because of pledges. For the public chain that integrates a large number of blockchains, what it can do is to collect messages from these block chain on its own chain for verification and packaging, saving them time and improving their performance.

ORION, like Polkadot, will integrate a large number of applications and blockchains, so in Polkadot’s words: if there must be a chain inflate, let me do it. Use my unlimited issuance to ensure the value and use of other public chains.

Token governance

The total amount of ORI in this part is limited, with an upper limit of 68 million, which will be released in seven stages. When ORION is available, 6.8 million ORI (which has been written into the genesis block) will be distributed to the community, early investors and governance committees in the form of airdrops. As the initial circulation token, these ORI can be pledged by verifiers, rented by developers, committee composition and community governance.

According to the ORION economic model, the community must put forward proposals for the remaining stages and decide whether to release or not after an online referendum. To be specific, if someone thinks it’s time to release the 3.2 million ORI for phase 2, he or she can submit a proposal to the Online Governance Council. The commission first holds a round of voting to decide whether to put it to a referendum. If successful, the proposal will be publicized as a referendum proposal to the entire community and the referendum is declared; Community members can vote as long as they hold an ORI; Finally, the rules will determine whether the referendum is successful or not, if successful, it will be released on time, otherwise the 3.2 million will not and never be released again. By analogy, if the next 6 rounds of referendum are not approved, only 6.8 million ORI in the token governance part will be released.

Directly: 68 million ORI. Except for the initial start-up funds, other will only be issued if allowed by the communities, or they will go. Very reasonable and decentralized.

ORI circulation mode

As mentioned above, 6.8 million ORI was initially dropped as a start-up fund to ensure that community members could participate in the construction and management of the network — whether it was for development, miners, nominations, or voting, you need to hold ORI. This is the core value of ORI.

And how does ORI circulate in the network?

First of all, developers who want to use and build smart contracts or projects in the network need ORI for leasing;

Secondly, the messages in the network need to be collected, verified, and packaged by the verifiers, so senders of the message needs to provide ORI as fee;

Furthermore, to be a verifier, you need to pledge a certain amount of ORI, and the nominator also needs to pledge ORI to be nominated;

Finally, the verifier’s income will be directly distributed to the verifier and nominator by the contract in the network according to the commission ratio set by himself.

This is a complete circulation route of ORI. As you can see, pledge accounted for a large proportion in the entire process, which is why ORION opted for unlimited issuance-to ensure that there is enough ORI in the network to meet the circulation of pledge and other functions.

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