Tokenomics
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Tokens are required for various network functions and must be locked and deposited as security (e.g., for spam protection). Tokens required for these functions can come from distributions to early adopters and interoperability partners, token sales, or can be acquired on the market. If the use of the DM3 network increases, the need for and demand for DM3 tokens will also grow.
Other features, such as enhanced privacy, require deposits and payments in DM3 tokens to incentivize participants to provide this enhanced service. The same applies to functions such as reading incentives for advertising messages. This also requires tokens, which creates demand.
Since the token is also required for governance tasks, it is important that projects that actively use the DM3 protocol, use DM3 components, or operate DM3 infrastructure can use them to realize their influence and co-determination and are motivated to hold tokens accordingly. This also results in a demand for DM3 tokens.
With functions such as spam protection, tokens are burnt if someone violates the network's rules. Thus, they are removed from possible availability and liquidity, reducing the total number of tokens.
The DM3 token has an initial maximum of 100M tokens (see ). After four years at the earliest, new tokens can be generated annually for operation based on a governance decision yet to be made.
The new tokens are limited to a maximum of 5M per year (corresponding to 5% of the original pool cap). However, this limit does not have to be exhausted; only as many tokens are minted as are demanded.
These tokens can be used by dm3.org for all tasks necessary for operation (according to its non-profit rules of procedure). The same rules apply as for the initial DM3 operating pool. The size and use of the inflation pool will be determined based on the governance decisions of the token holders who can vote on it (see ).