NAETION ($NTN) Tokenomics
NAETION ($NTN) is built on the Ethereum blockchain using the ERC-20 token standard.
There will be a fixed initial supply of 1 billion NAETION ($NTN) tokens created at launch. No additional tokens will be minted or mined. None will be burned at launch, but the NAETION team will retain the ability to manually burn tokens in their possession—even as they do not plan to use this ability. This fixed supply will allow NAETION ($NTN) to achieve a reasonable value as it is transacted for services on the NAETION platform, and lend it the value needed to stand in for fiat currency as medium of exchange.
5% of all NAETION ($NTN) tokens (50 million tokens) will be made available in the initial public pre-sale.
30% of all tokens will be reserved for potential future pre-sales. In the event that those pre-sales do not occur, then these tokens will instead be held in the Service Economy Wallet and used to reward QUESTers when they complete work on the NAETION platform, etc.
39% of all tokens will be reserved in the Service Economy Wallet to be used exclusively for the following purposes:
Distributing rewards to QUESTers who complete work on the platform.
Distributing rewards to clients, Validators, Resolvers, and other community members in return for performing behaviors deemed beneficial to the collective NAETION ecosystem.
Distributing grants to exceptional service providers on the basis of merit from time to time. The purpose of these grants will be to encourage adoption of the NAETION platform by service providers, reward exceptional service providers for their contribution to making NAETION a great place to hire services, and encourage other service providers to adopt good service provider practices and behaviors.
Providing liquidity for transactions that occur within the NAETION platform under specific conditions where liquidity is needed. For example, in the situation where a service requester makes a payment into NAETION using fiat currency such as USD or EUR, and the service provider elects to receive payment for that service in NAETION ($NTN), or vice versa, the NAETION platform needs enough liquidity to perform these functions. It is the primary function of the Future Liquidity Wallet to make NAETION ($NTN) available to the service provider when a transaction is registered.
2.5% of all tokens will remain in a Future Liquidity Wallet controlled by the NAETION team to be used exclusively for seeding liquidity on exchanges which may list NAETION ($NTN) in the future. For future users of those exchanges, having an initial pool of liquidity is necessary to begin trading NAETION ($NTN). Funds from the Future Liquidity Wallet will be used to fund those initial liquidity pools.
10.5% of all tokens will be put in NAETION's treasury to pay for ongoing marketing and development. These tokens will be used exclusively to directly advance the NAETION ($NTN) roadmap, such as development of Web3 features and automated rewards.
Finally, 13% of tokens will be reserved for the NAETION founding team. These tokens will be put on a vesting contract as follows: 25% of the tokens will be locked for 6 months, 25% locked for one year, 25% locked for 18 months, and 25% locked for two years. This will serve as an incentive for the founders to continue to grow NAETION ($NTN) and NAETION into the far future.
Differential Transaction Taxes
NAETION ($NTN) token transactions will be subject to different transaction taxes depending on where the transaction takes place. For all transactions that take place within the NAETION platform, there will be zero transaction tax.
For all transactions that take place outside of the NAETION platform, such as on a decentralized exchange platform like Uniswap, there will be a transaction tax of 8% applied. This 8% transaction tax will be subject to change by the NAETION ($NTN) developers, in case the dynamics of the token need to be shifted to ensure the health of the NAETION ecosystem in the future. The 8% transaction tax will be split into two equal halves.
Half the transaction tax (4% of the total transaction) will go to the liquidity pool on the exchange platform being used and itself will be split evenly between ether (ETH) and NAETION ($NTN). This will contribute to a constantly increasing pool of liquidity, which will ensure that the preferred trading pair will always contain tokens against which holders of NAETION ($NTN) may sell or buyers may buy.
The remaining half of the transaction tax (4% of the total transaction) will go into the Service Economy Wallet, which will be used to reward users for collective-good behaviors such as leaving reviews and referring new users, as well as for grants to exceptional service providers. We will discuss the Service Economy Wallet in more detail below.
The transaction tax at this level for transactions outside of NAETION will have one main effect. It will serve as an additional incentive for users to refrain from trading NAETION ($NTN) outside the NAETION platform and use their NAETION ($NTN) exclusively for buying services on the NAETION platform itself. Trading outside the NAETION platform will increase price volatility, so reducing this trading activity will reduce volatility and ensure NAETION ($NTN) remains stable enough to be used as a medium of exchange.
The NAETION team will build a portal whereby NAETION ($NTN) holders may vote on the use of a portion of Service Economy Wallet funds. Holders will be able to submit proposals for use of funds to advance the goals of the Service Economy Wallet, and all holders will be able to vote on those proposals. Votes will be counted in proportion to the amount of NAETION ($NTN) each voter holds. The NAETION team will set the portion of the Service Economy Wallet which will be eligible to fund community-submitted proposals, as well as the rules for proposal submission and voting. The NAETION team will also retain final veto power over any proposal submitted and voted on.