Gno Tokenomics Model
The economic structure of the Gno.land blockchain and $GNOT token.
Token Distribution
Initial Allocation
- 70%: Airdrop (primarily to ATOM holders)
- 25%: NewTendermint LLC
- 5%: DAOs
Airdrop Strategy
- Heavy focus on Cosmos ecosystem
- ATOM stakers prioritized
- Retroactive rewards for early supporters
Economic Parameters
Inflation Model
- Range: 5-10% annual inflation
- Variable Rate: Based on staking ratio
- Target: Incentivize optimal staking levels
Validator Economics
- Complex reward calculations
- Performance-based incentives
- Slashing for misbehavior
- Commission structures
Treasury Structure
Multiple Pools
- Validator Rewards Pool
- GovDAO Treasury
- Development Fund
- Community Pool
Funding Sources
- Transaction fees
- Inflation rewards
- Penalty fees (slashing)
- Protocol revenue
Token Utility
$GNOT Functions
- Gas Token: Pay for transactions
- Staking: Secure the network
- Governance: Vote on proposals
- Rewards: Earn from usage
Developer Incentives
- Usage-based rewards
- Library monetization
- Contract revenue sharing
- Grant programs
Funding History
Investment Rounds
- Initial: $3M from 1Confirmation
- Strategic: $16M from AIB (All In Bits)
- Target: $10M at $150M valuation
Valuation Evolution
- Started: $86.6M
- Current: $150M pre-money
- Strategic partners only
Economic Philosophy
Core Principles
- Reward actual usage
- Sustainable inflation
- Fair distribution
- Long-term alignment
Challenges
- Complex calculation models
- Multiple treasury management
- Unclear revenue projections
- Validator centralization risks
Comparison Points
vs. Ethereum
- Lower gas fees targeted
- Different consensus (PoC vs PoS)
- Focus on developer rewards
vs. Cosmos
- Single token model
- Integrated smart contracts
- Different governance approach
Key Takeaways
The Gno tokenomics model attempts to balance multiple stakeholders but adds significant complexity. The heavy airdrop allocation (70%) and multiple treasury system create operational overhead that may impact efficiency.
Sources
- Gno Tokenomics Document: https://gist.github.com/jaekwon/4d1c81ee3b82a0fc29f67d50e7f8664c - Detailed economic model
- Gno Pitch Deck: https://gist.githubusercontent.com/jaekwon/55a3e8e6d2f178107631f19b341f5d83/raw/f40e7b6fff3317e9b1ad03242a60e066a89d484b/test.md - Funding and valuation details