This quarter, we will vest 163,800,068 tokens and unlock 166,666,667 for the team. These will be staked in the coming days, which will further secure and increase the value of our network.
What is vesting?
You can think of the vesting process as similar to a central bank’s reserves. The bigger it is, the stronger the fiat currency, and the more flooded the market becomes, the less their value. Similarly, having some vested tokens and gradually releasing them helps us ensure the network’s long-term robustness.
Our network has been live for nine months, so we’re releasing the second batch of vested team tokens following the initial six months of lock-up. In our case, it will take a total of ten years since our inception for all CUDOS tokens to be released. Ultimately, the vesting process allows us to control inflation and balance supply and demand in the market. However, if you want to learn more about the ins and out of vesting, you can read our previous update on the topic.
What are we doing now?
Currently, there are approximately 1.83 billion CUDOS tokens in circulation. This number will increase gradually in the coming weeks as we release another 167 million for the team plus another 163 million for the reserve for a total of 330 million. However, since the team ones will go to our staking portal rather than reaching the market, our token inflation will be mostly unaffected.
What will happen, though, is an increase in our market cap by about $8.7 million. This is based on the additional 330 million CUDOS, priced at approximately $0.029 at the time of writing.
What does it mean for you?
Since we’ll be staking the tokens that we’re releasing, this will simply further secure the future of our Proof-of-Stake (PoS) network with minimal initial impact on price. Furthermore, over 40% of our tokens are already staked on-chain.
Essentially, this is just a standard step in the maturation and growth of our project. However, since we’re still relatively young, our CUDOS token has far more significant upside potential compared with some more established projects.
If you feel motivated to support the more decentralised, sustainable, and connected world we’re creating, you can help us realise our vision by supporting our network!
The Cudos Network is a layer 1 blockchain and layer 2 computation and oracle network designed to ensure decentralised, permissionless access to high-performance computing at scale and enable scaling of computing resources to 100,000’s of nodes. Once bridged onto Ethereum, Algorand, Polkadot, and Cosmos, Cudos will enable scalable compute and Layer 2 Oracles on all of the bridged blockchains.
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