Network Coin Ai Tokenomics

Currently, the Network Coin Ai token supply is set to follow a mildly inflationary model.

With each new block created every 3 seconds on Network Coin Ai, the validator who creates it, and the delegators who staked with them, receive the block rewards in newly issued Network Coin Ai tokens. This is designed to secure the network's consensus mechanism.

The main reason for choosing an inflationary model at the early development stage was to ensure a certain predictability of the flow of revenue for network validators and delegators. If they had to exclusively rely on transaction fees as the reward for staking Network Coin Ai and validating, it would be harder for them to predict their future returns, as transaction activity on the network can fluctuate a lot. The relative predictability of validator revenue is an important assumption behind the blockchain consensus theory on which the Network Coin Ai consensus mechanism is based.

Having substantial block rewards also makes it possible to keep transaction fees on the network low, facilitating adoption of Network Coin Ai.