Neurai Tokenomics

When Satoshi created Bitcoin, he established a reward system that halves every four years. He did this as part of an experiment to predictably determine how coins will be distributed and the maximum number of coins in circulation. As more coins were created, other methods of distributing coins emerged, and even other systems like PoS (Proof of Stake) came into play. Knowing the distribution of a coin is crucial to more easily determine its optimal price and this price is formed at the intersection of the highest price someone is willing to pay and the lowest price at which another person is willing to sell. <h1>Choice of tokenomics</h1> <img alt="" src="https://miro.medium.com/v2/resize:fit:700/0*v__OLIogcfXJ8mZl.png" style="height:435px; width:700px" /> When we decided to create Neurai, the coin distribution had to be as optimal as possible, but defining this is truly challenging. We could have copied Bitcoin’s or Ravencoin’s method with a reward reduction every 4 years, but doing so now doesn’t seem very useful due to the potential lack of supply during the project’s early stages. Another option was to reduce the halving period to 2 years or even 1 year. At this juncture, we believed we had the best choice. However, having a halving every year could also be detrimental due to the abrupt drop to 50% of the reward overnight. <a href="https://neuraiproject.medium.com/neurai-tokenomics-69384d72d017">Read More</a>