Inflation for Crypto.org is recording a number of 2.5%, approximately. There are almost 26 billion CRO tokens in circulation with the ecosystem emitting around 646 million CRO tokens. A new burning mechanism by the team is now all set to lower the inflation rate to approximately 2.1%. Daily emissions have increased majorly as a result of technical improvements that have enabled the blocks to validate faster in 5.1 seconds, the previous best being 6.5 seconds.
If implemented, the proposed burning mechanism will lower the inflation rate and also look to sell the long-term pressure being built on the community. A major difference between the current mechanism and the proposed mechanism is in the construction of a Community Pool. It will collect a certain portion of the token for burning and lower the circulation. Additionally, it will enhance the CRO token economy with robust security.
The current mechanism begins with holders delegating their respective tokens to validators who then secure the chain by producing blocks based on how many tokens have been staked. CRO reward is then distributed to holders subject to the deduction of Validator Commission. Validators receive the reward as well based on their decided commission rate.
(by David Cox)
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