Cypher Technical Documentation
  • Introduction
    • Overview
    • Key Features and Technical Advantages
    • Developer Focused Development
  • Technical Innovation
    • Fully Homomorphic Encryption EVM (fhEVM)
    • Layer 3 Architecture
    • Privacy-Preserving Data Management
    • Seamless Integration
    • Optimized for Privacy-Critical Applications
  • Cypher’s fhEVM Technology
    • What is fhEVM?
    • Architecture of fhEVM
    • Detailed Supported Operations in fhEVM
  • Deploying Smart Contracts on Cypher Testnet
    • Configuration and Deployment
    • Obtaining Testnet Tokens
  • Operations in a fhEVM Framework
    • Concepts
    • Random
    • Secret Store and Access Control in Encrypted Smart Contracts
    • Using fhevmjs for Encrypted Smart Contract Development
  • Tokenomics V2
    • $DEAI Token
    • Token Utility
    • Token Distribution
  • Cypher Layer 3 Tech Integration
  • Glossary
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  1. Tokenomics V2

Token Distribution

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Last updated 2 months ago

The updated tokenomics introduces a sustainable distribution framework, focusing on incentivizing participation while ensuring long-term alignment with the network’s growth.

1. Revised Vesting Schedule

  • Additional token trenches for validators, core contributors, zero construct incentives, the foundation, and advisors will not begin vesting until March 20, 2026.

2. Validator Incentives

  • Validators and delegators are rewarded for staking and contributing to network security.

  • Retroactive Cypher Node Licenses will be issued to existing stakers, allowing them to receive future validator rewards.

3. Emission Control

  • Dynamic mechanisms balance new token emissions with burn rates, achieving a deflationary net effect over time.

  • Examples include AI model transaction burns, staking fee burns, and dynamic inflation offsets tied to network activity.

4. Community Alignment

  • Vesting aligns token distribution with the network’s growth trajectory, ensuring long-term commitment from contributors and stakers.