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The basic economic model of the Carbon token
Block rewards come from SWTH emissions and protocol fees.
The block rewards on Carbon are split and distributed in this ratio:
SWTH follows an inflationary token model that decreases in inflation rate over time, and is issued as part of block rewards over 5 years. After the 5th year (31 March 2025), no new tokens will be issued.
For the first 5 years after the launch of the protocol (21 August 2020), emission of SWTH as block rewards will occur on a weekly basis. In Week 1, the emission of SWTH began at a rate of 1.65%, decaying by 1.65% week-on-week. After Year 5, no new tokens will be issued.
SWTH inflation APR and reward model
SWTH supply curve over 5 years
Currently, about 90% of all SWTH is in circulation, which reduces the inflationary pressure for SWTH holders. With most of the downward selling pressure gone, more and more of the staking rewards will be from fees generated by activities on the Carbon blockchain, i.e. real yield from protocol fees.