Why were we crazy enough to pre-mine 8 trillion Dentacoins?
Probably the next most popular question after “How can I buy Dentacoin?” is “Are you crazy? 8 trillion token supply!?”. It’s not like we haven’t answered the second question before but let us make another attempt, starting this time from the total Dentacoin supply and its allocation.
Total supply allocation
To confirm: 8 trillion is the total Dentacoin supply which is pre-mined. No mining means no expensive energy consumption -> lower distribution costs -> extremely low market entry barriers. The use of a smart contract limiting the total supply of DCNs ever issued also creates an anti-inflationary effect in the long term.
The total DCN supply allocation is planned as follows:
Locked amount 96,20%
TimeLock contracts (distribution 2018–2042) 76,1%
Coin option plan 5,0%
Founders 5,0% ICO (locked until 01.10.2017) 3,0%
Foundation — future needs (after 2042) 4,1%
Dentaprime International plc. — bonus (if the targets are fulfilled in 8 years) 3,0%
Unlocked amount 3,8%
Dentaprime International plc.(purchased entirely in DCN) 0,4%
Core team members 2,4%
The total amount will not be distributed all at once. The distribution of 76.1% of the coins (6.088.888.888.888 DCN) between 2018 and 2042 is planned as follows:
· 2042/rest — 4.8%
The annual distribution amounts are locked in Timelock contracts that can be easily verified on GitHub — click here.
It’s not nonsense. It’s vital.
• For global coverage and long-term success, we certainly need enough coins.
The minimum required volume of any currency in order to have a chance for global use is 5% of the total world currencies volume. Today, all of the world’s money equals USD 160 trillion and 8 trillion DCN is an equivalent to approximately 5% of this amount.
Let’s take a look at just one of the Dentacoin tools. The pilot project of Dentacoin — the Trusted Review platform — is already developed as the first Blockchain-based, tamper-resistant and transparent platform for dental treatment reviews worldwide. It is already functioning on the main Ethereum network even before the ICO, i.e. patient are being rewarded with DCN for their detailed and valuable feedback. The planned daily users only of this first tool is up to 3 000 000 users (3 million users), each of which will be rewarded with a certain amount of Dentacoins.
But that’s just one of the Dentacoin tools…
• We need Dentacoins to serve all of our value-generating tools for global use.
There are two ways you can get Dentacoins: 1) by purchasing it; 2) by earning it. Approx. 40% of the total DCN supply are reserved for BUYING (ICO and presale activities, crowdfunding), another 20% are to be utilized by the Dentacoin Foundation for development of tools, marketing activities, bounty programs, future projects and unpredicted expenses. The last 40% left are reserved for EARNING (through tools and value-generating activities, contributing to the improvement of the dental industry).
Here comes the tricky part. Tricky due its uniqueness.
On its way to solve the industry’s most pressing problems, Dentacoin implements an one-of-a-kind “value-generating” distribution model. Through numerous Blockchain-based tools, Dentacoin aims at bringing patients and dentists into communities, working together to improve dental care worldwide and make it affordable. All these tools are served by the Dentacoin token, meaning that users are rewarded with DCN for their work, for their contribution to the Foundation’s mission.
Due to the real-world purpose of Dentacoin, its target group has much bigger size than most of the Blockchain-based projects and it consists of more than 600 Mio users (patients and dentists). The distribution model of Dentacoin spreads the currency among the target user group, brings all market participants together into co-working communities and thus generates value for the whole industry. This powerful network is expected to trigger network effects where adding a new participant increases the value of the network for all existing participants. Or as “The Merkle” described it:
“40% of the total DCN supply will be distributed among millions of people who contribute to the mission of Dentacoin. This will result in creating millions of wallets, generating mass distribution and activating the crowd to use this token. The potential user group of Dentacoin extends far beyond the closed Blockchain community.” The Merkle
Well, that’s just it. No more, no less.
You are still free to consider us crazy though. But you know what they say: “The people who are crazy enough to think they can change the world are the ones who do.”
Originally published at Dentacoin Blog.