The future possibilities of cryptocurrency are limitless. Who knows, maybe it will be available on no deposit free spins NZ 2021. But one thing is sure, the new developments in cryptocurrency seem to focus on sustainability, like in the case of KDA. The KDA token circulation is set at 1 billion coins, which will be distributed over 120 years. So then, what is KDA?
According to the project’s website, “KDA is a digital currency that is used to pay for computation on the Kadena public network.” “KDA on Kadena is the method by which miners are reimbursed for mining blocks on the blockchain. It is also the fee charged that users pay to have their transactions included in a block. It works similarly to ETH on Ethereum.”
How Many Tokens Are There In Total?
As mentioned, the entire KDA quantity has been set at 1 billion tokens, which will be mined over 120 years. Kadena has the 2nd most community-favorable token issuance among the top 12 layer-1 projects, according to a Messari analysis released in Q3 of 2020. It’s worth mentioning, however, that 70% of KDA tokens are controlled centrally and susceptible to change.
“Kadena will not distribute more than 22.08 million tokens each year and 2 million tokens every month. “Kadena reserves the right to change, reduce, or enhance the platform emission schedule in the future if it is in the platform’s, Kadena’s, or the ecosystem’s best interests.”
Coins from allocations progressively become accessible, ensuring stability. The network and token protocols are built for long-term viability, with an adoption curve that ensures the economy scales rather than spikes. As a result, there is an equilibrium between coins generated through mining and those allotted in the genesis block. The fact that the release dates are staggered guarantees that the proportions remain balanced.
Overview Of The Network
Tokens in Kadena are similar to Ethereum. They also function in the same way in that mining generates coins. As such, the existing coins can be used to:
- Transfer funds directly between users
- Create new smart contracts
- Execute smart contracts at a gas cost
Pact, an open-source, formally verifiable, human-readable, and Turing-incomplete language, writes Kadena’s smart contracts. Its design is user-friendly, simple to use, and embraced by both technical and non-technical personnel. For the execution of Pact smart contracts on the Kadena blockchain, gas is paid to the platform.
Kadena has created a token market economy that aligns all participants’ incentives. Because Kadena is a public blockchain network, mining is the primary method of distributing currency. A genesis block will be created, with allocations to investors, contributors, and the platform reserve. The remaining coins are created as a reward for mining.
Mining rewards make up the majority of the coins in the Kadena economy. Because Kadena is a Proof of Work network, its function and growth are dependent on decentralized mining. Block incentives are given to miners for validating and producing blocks.
The block reward will be paid out in Kadena, the platform’s cryptocurrency (KDA). Miners will be able to obtain KDA as gas payments or transaction fees when smart contracts are executed. A “Hop,” a trillionth, is the smallest fractional unit of KDA and is named after Grace Hopper.
Every six months, block rewards are revised according to a specified timetable, with around half of the available minable coins being awarded as block rewards every 20 years. Kadena can be mined for about 120 years because it has a fixed number of tokens.
In effect, this places the economic model somewhere between a capped/deflationary system (Bitcoin) and a purely inflationary system (Ethereum).