Oraichain Token Economics

Oraichain has a long term strategy and a clear vision which stands as the pillars to build a solid foundation with stepping stones towards future growth. The AI, Blockchain and DeFi industries are at an early stage and expected to grow exponentially in the coming years.

Oraichain’s sustainable growth and overall health is of paramount importance as the company moves into the next phase of our growth period. The cornerstone of the business is to apply real world Artificial Intelligence solutions to some of the key areas with blockchain, with areas of opportunity to make a difference in Healthcare, Automotive, Financial Services, Retail, Technology, Manufacturing, Logistics and more sectors. Oraichain tokenomics aim to create network effects over time and further solidify ecosystem growth in the years to come.

Oraichain Token Allocation

The ecosystem is the largest allocation and will be the main source entering the circulating supply in the near future. The tokens from the Ecosystem will be used to fuel growth of Oraichain products and services. This will occur by incentivising Oraichain node validators, AI test case providers or boosting platform adoption on the Oraichain AI Marketplace, yAI.finance and future products. The foundation will support the company’s operations, future partnerships and other corporate business requirements. The marketing allocation will help expand Oraichain’s awareness, help position our products and services, and boost customer acquisition.

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Token burn: 73,2%

New Tokenomics

Subject Percentage Amount
Seed Sale 0,6% 129,000
Private Sale 0.0% 0
Marketing 5,3% 1,212,418
Ecosystem 33,3% 7,677,204
Team 21,7% 5,000,000
Advisors 10,9% 2,500,000
Foundation 28,3% 6,519,100
Total Supply 100% 23,037,721

Old Tokenomics

Subject Percentage Amount
Seed Sale 0,6% 129,000
Private Sale 5,8% 5,000,900
Marketing 10,9% 9,311,000
Ecosystem 35,8% 30,800,900
Team 17,4% 14,938,200
Advisors 10% 8,800,000
Foundation 20% 17,200,100
Total Supply 100% 86,000,000

Circulating supply

Oraichain token economics highlight a strong commitment and focus for the long term. The token release schedule is extended until 2027, with a release curve designed to avoid supply shocks and make the release of tokens gradual over time.

To provide further transparency on the short and mid term outlook, the graph below highlights the expected circulating supply for the next 3 years (2021, 2022 and 2023). Oraichain will make sure the circulating supply grows gradually ensuring there are no supply shocks. This means the following: approximately 10, of the total supply is planned to be in circulation by November 2021, 20, by November 2022 and 30, by September 2023 as can be seen in the following graph:

The principles driving the tokenomics update

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Long term vision and sustainability

It’s imperative Oraichain continues its journey as the world’s first AI-powered oracle and its business model remains sustainably over time.

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Fairness

Oraichain values its seed and early investors and
wants to protect their interests.

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Attractiveness for investment

As Oraichain develops its ecosystem, new investments might be needed. Therefore, Oraichain aims to create a beneficial scenario for all ORAI token holders, both current and future ones. This might include retail, future funding and onboarding strategic partners or equity investments.

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Avoid supply shocks

Oraichain understands that short-term supply shocks harm the health of the project and the value of ORAI tokens. The tokenomics will follow this principle avoiding shocks on future circulating supply releases.

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AI industry growth correlation

The artificial intelligence industry is expected to grow at a compound annual growth rate (CAGR) of 42.2, from 2020 to 2027, with software and services representing the majority of the market according to a report from Grand View Research. Oraichain aims to develop an ecosystem of products and services that unlock the full potential of AI and Blockchain. As Oraichain looks towards disrupting both industries in the future, a degree of correlation to the AI industry growth has been applied in the Oraichain tokenomics.

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ORAI token utility

With the launch of the Oraichain mainnet on February 24th 2021, the ORAI token will be required to secure and power the decentralized oracle network of validators. The native ORAI token is also used in different scenarios within the Oraichain AI ecosystem.

1) Staking

Validators in the Oraichain network are required to stake ORAI in order to be selected to create blocks or fulfill data requests.

2) Transaction fee

ORAI tokens are required as a method of payment for AI oracle services (price prediction, risk score, price feeds, etc.), AI services (run AI requests sent to the Oraichain network, utilize AI APIs and Testcases on the Oraichain AI Marketplace or have access to yAI.finance AI-based strategies) and future products and services powered by Oraichain.

3) DAO

Participation in the governance of Oraichain: the Oraichain network will be organized in the DAO manner, with protocol upgrades and parameter changes to be voted by ORAI token holders.