The ICX ICO provided early investors an opportunity to purchase ICX ERC-20 tokens at a price of 1 ETH for 2,500 ICX. A total supply of 400,230,000 ICX tokens were made available at the time of ICO. 50% of this total amount was provided to the public during the initial token sale. The remaining half was distributed as follows:
- Foundation 14%
- Community Group & Strategy Partners 10%
- Team, Advisors & Early Contributors 10%
- Reserve 16%
An additional 400 million ICX tokens have yet to be minted. It is unclear whether this 800 million will be the max supply of ICX tokens or whether more will be minted in the future.
Yes the total supply should be 800M however 400M are not minted yet. They will be minted after mainnet. Sorry for confusion.
— ICON (@helloiconworld) January 3, 2018
When will these additional 400 million be released?
The remaining 400 million ICX will be stored in the Public Treasury and up to 20% of the total volume can be issued each year. This doesn’t necessarily mean that the entire 20% will be issued in the first year though. The amount that’s released will be determined based on the consensus of ICON Republic, which will take a variety of factors into account in order to factor this decision. These factors include the trading volume, freezing volume, and transaction fees.
What is ICON Republic?
ICON Republic is the mechanism which connects the various blockchains and communities that interact on the ICON platform. This mechanism is comprised of community representatives (C-Reps) and Citizen Nodes. If you’re familiar with Blockchain’s PoW consensus algorithm, C-Reps would serve a similar function to miners in that they’re responsible for processing transactions within the blockchain and they do so through a voting process. C-Nodes have no voting power and can only make transactions. Kinda like it is in America.
How does this determine when coins are issued?
ICON comprises a network of individual blockchains. These blockchains are connected through the Nexus blockchain where ICX tokens are embedded within Reserve Channels. When transactions are made within the different blockchains, they are done so via Decentralized Exchange (DEX) where ICX is used as the intermediary token. Exchange rates are determined using the Bancor Protocol, which calculates rates according to an algorithm that continuously balances buy and sell volumes.
The issuance of ICX tokens is based on a scoring system which uses an artificial intelligence algorithm called DAVinCI which decides how much to issue based on inflation and exchange rate.
So 400 million tokens won’t be released when mainnet launches?
It’s highly unlikely that all of these would be released into circulation at launch. Since mainnet isn’t live yet, we can assume that a very minimal amount of nodes exist within the community. There may only be several existing blockchains within Nexus, negating the need for any more tokens right away.
The important thing to realize here is that no single entity is responsible for the issuance of ICX. The ICON Foundation isn’t keeping them in a wallet to release at their discretion. They are held within a Reserve channel and the rate of release is algorithmically determined by a community defined protocol.
For more information, please consult the ICON whitepaper. If you’d like to talk more about the ICON Project with a group of like-minded individuals, feel free to join our community on Reddit or jump into the conversation on Discord.