9. Bounty Tokenomics

Token Supply and Inflation

The BOUNTY token economy of ChainBounty is based on the existing UPP token economy of Sentinel Protocol, adjusted to fit the new system. As outlined in the Sentinel Protocol whitepaper, a total of 500 million UPP tokens were issued, which were used as rewards for the platform’s community and validators. ChainBounty introduces the new BOUNTY token based on this issuance and applies the following inflation plan.

Inflation Plan

• Launch Date: Inflation issuance begins in October 2024, coinciding with the testnet launch of ChainBounty. The official mainnet launch will take place at the end of December 2024.

• Initial Inflation Rate: The initial inflation rate is set at 7% in the first year.

• Inflation Vesting Period: There will be 20 vesting periods, with each vesting period

  lasting one year. This means the inflation rate spans over 20 years.

• Gradual Decrease: The inflation rate will decrease each year, reaching approximately

  0.1% by the 20th year.

Yearly Expected Issuance

• October 2024 - September 2025: In the first year after the mainnet launch, a 7% inflation rate is applied, adding 35,000,000 BOUNTY tokens. The supply at the end of this period is 535,000,000 BOUNTY.

• October 2025 - September 2026: In the second year, the inflation rate is 6.6368%, adding 35,506,880 BOUNTY tokens. The total supply at the end of this period is 570,506,880 BOUNTY.

• October 2026 - September 2027: In the third year, the inflation rate decreases to 6.2737%, adding 35,791,880.13 BOUNTY tokens. The supply at the end of this period is 606,298,770 BOUNTY.

• October 2027 - September 2028: In the fourth year, the inflation rate is set at 5.9105%, adding 35,853,528.81 BOUNTY tokens. The supply at the end of this period is 642,134,059 BOUNTY.

• October 2028 - September 2029: In the fifth year, the inflation rate decreases to 5.5474%, adding 35,621,744.79 BOUNTY tokens. The supply at the end of this period is 677,755,804 BOUNTY.

  In this way, the inflation rate gradually decreases each year, reaching approximately 0.1% by the 20th year. This plan is designed to ensure the long-term stability and sustainability of the BOUNTY token economy of ChainBounty.

Token Usage Plan

The BOUNTY tokens issued during the first three months from October to December 2024 will primarily be used for platform development. The ChainBounty platform will be publicly launched in December 2024, following the completion of Layer 2 technology development. From January 2025 onwards, the issued BOUNTY tokens will be used for validators and bounty programs. Essentially, 50% of the issued tokens will be reserved for community bounties, while the remaining 50% will be allocated to validators.

Inflation Details

• Launch Date: Inflation issuance begins in October 2024, coinciding with the launch of the ChainBounty mainnet.

• Annual Inflation Rate: The initial inflation rate is set at 7% in the first year, decreasing each year. In the second year, the rate drops to 6.6%, followed by 6.3% in the third year, 5.9% in the fourth year, and 5.5% in the fifth year. By the 20th year, the rate reaches approximately 0.1%.

• This inflation structure ensures the long-term stability of ChainBounty's ecosystem while providing continuous rewards to the community and validators.