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Jan 25 2018

Understanding the Skycoin Supply and Distribution

Understanding Supply

Skycoin has a total supply of 100 million coins created in the genesis block. Currently the circulating supply is at 7.278.040 SKY (~7,2%).

75 million coins (75%) are timelocked (hardcoded in skycoin.go scroll down to bottom) and 25 million coins are currently unlocked.

The remaining supply of immediately distributable Skycoin in this moment comes down to 17.721.960 million coins (~17,7%). These coins will be used to further the growth of the skycoin project as well as to incentivize the Skywire meshnet.

The 75 million (75%) undistributable Skycoin cannot be distributed until the first 25 million (25%) have been distributed. After that is done, for each subsequent year thereafter, 5 million coins (5%) are unlocked via an unanimous consent (1 vote against distribution can stop the whole process) of an unknown group of developers. This does not mean that each year 5 million coins have to be distributed, they are just unlocked and it is possible to distribute them. This process depends on the growth of Skywire. Unlocking the total supply of 100 million takes a minimum of 14 years and the distribution can be extended to up to 25 years if necessary.

Understanding Distribution

As stated above 17.721.960 million coin (~17.7%) are distributable.

There is an OTC that comes up regularly to erratic times and it contains up to 10BTC worth of Skycoin each day it opens. The price is adjusted manually and set at 10% above coinmarketcap rate.

The other part of the funds is being used and will be used to build product, listings on exchanges and production facilities for the hardware components of Skywire (antennas, chips etc.) as well as to pay Skywire participants for providing bandwith when the mainnet of Skywire launches.

The end goal is to have a network that is in a closed, internal economic cycle, meaning that the Skywire incentives are tweaked in a way, that the mean revenue per user (capital inflows) exceeds the cost per user over lifetime.