Tokenomics
Last updated
Last updated
Our tokenomic model is designed to foster a truly decentralized network of node operators by prioritizing self-sufficiency and sustainability. We allocate a substantial portion of the token supply for node rewards during the expansion phase to incentivize participation and accelerate network growth. This strategy promotes stability, efficiency, and resilience, ensuring that the network remains self-sustaining and decentralized in the long term.
Functions of the Native Utility Token
The native utility token serves various functions within our ecosystem, including:
Payment for GPU resources: Tokens can be used by customers to pay for computational power.
Staking for network governance: Token holders can stake their tokens to participate in governance decisions.
Rewards for active participation: Participants in the network, such as node operators and validators, receive rewards in the form of tokens.
Key Figures:
Total Token Supply: 1,000,000,000 (1 billion)
Buy/Sell Tax: 5%
Network: ERC20
Token Allocation and Distribution
Node Operators (100,000,000 tokens)
Rewards for GPU Providers: 75,000,000 tokens are allocated to incentivize GPU providers to dedicate resources towards jobs, ensuring they are rewarded for early adoption.
Rewards for Validators: 25,000,000 tokens are allocated to validators in our network who validate the proof-of-work done by the CNodes.
Halving Model: Contributor rewards tokens will follow a halving model, decreasing by half at regular intervals over a 10-year period:
Years 1 & 2: 51,612,903 tokens distributed
Years 3 & 4: 25,806,452 tokens distributed
Years 5 & 6: 12,903,226 tokens distributed
Years 7 & 8: 6,451,613 tokens distributed
Years 9 & 10: 3,225,806 tokens distributed
Of the tokens distributed, 75% will go to node operators and 25% to validators. Additionally, 0.15% of the total 0.4% transaction fees collected from Cerebrum Jobs will go towards additional rewards to validators. Post 2026, this rate will increase to 0.3%.
Cerebrum Foundation (20,000,000 tokens)
2% of the tokens are immediately unlocked for the Cerebrum Foundation to foster innovation, research, and development. The Foundation will focus on:
Product R&D in parallel computing and mobile distributed computing
Skunkworks Development Team (Cerebrum Labs)
Technology Grants and Research Funding
Educational and Outreach Programs
Incubator and Accelerator Programs
Community Development and Engagement
Ecosystem Growth Fund (70,000,000 tokens)
7% of tokens will be allocated to the ecosystem growth fund. Designed to be used for the purpose of the growth and availability of the ecosystem, these tokens will be carefully allocated for the purposes of liquidity, partnerships, listings, marketing and KOLs and other budget-intensive activities that involve paying third parties. As such, this fund ensures that Cerebrum is visible (and the $CBM token available), allowing for our network of node providers and customers to grow.
Core Contributor Allocation (10,000,000 tokens)
1% of the total supply is allocated to core contributors, including the development team and board of advisors. With a 24-month vesting period, these individuals who are instrumental to the growth of the project and implementation of industry best practices will have a long-term incentive.
Tokens will be released in 4 tranches with a 6 month cliff, allowing for ongoing availability for distribution, while ensuring long-term commitment and ability to onboard new advisors.
Tranches of deployment are as follows:
Tranche 1 (6 months): 2,500,000 tokens
Tranche 2 (12 months): 2,500,000 tokens
Tranche 3 (18 months): 2,500,000 tokens
Tranche 4 (24 months): 2,500,000 tokens
Liquidity Pool (800,000,000 tokens)
80% of the tokens are made available for public sale through a public sale, ensuring fair and decentralized access to the token distribution process. These tokens will include 5% buy / sell tax, ensuring a fair and easy way to own the deflationary $CBM token that is essential to our economy.
