SOUL sustains the entire ecosystem through a low 3% annual inflation, in addition to the fixed Soul Master SOUL rewards which amounts to 125,000 SOUL monthly. Of the 3%:

- 1% is allocated to Phantasma’s decentralized developer and core contributor group Phantom Force.

- 1% is allocated to Phantasma’s consensus nodes, the block producers. 75% of this is allocated to active block producers, while the remaining 25% is shared among standby block producers.

- The remaining 1% is distributed to block producers until it has been allocated to various future incentives — at the time of writing 0.2% has already been allocated to the CROWN rewards pool, while the remaining 0.8% remain unallocated. A part of this remainder will be allocated towards sustainable liquidity provider incentives.

- The Soul Master SOUL reward system is a perpetual incentivization of long term loyal token holders.

While the fixed Soul Master rewards are minted and automatically distributed on a monthly basis, the remaining inflation is split into four automatically distributed quarterly allocations.

To sum up the inflation numbers, SOUL starts out with approximately 4.5% annual inflation with one relative (3%) and one fixed (125,000 monthly) component. As time moves towards infinity the fixed portion of the inflation will correspond to a smaller percentage, and SOUL’s annual inflation will be moving towards 3%.

KCAL is generated only through staking SOUL. There is no additional minting or inflationary mechanisms than staking. For each SOUL you stake, you generate 0.002 KCAL every single day.

All transaction types on Phantasma require a KCAL fee, and 50% of every transaction fee is burned.

Smart contract and token deployment require a larger amount of KCAL as deployment fee, pegged to a fiat amount. 100% of this fee is immediatley burned on contract deployment.

In addition, dApp providers are contributing, with GhostMarket burning half their earned KCAL fees, further driving a downwards pressure on the KCAL supply.

The balance between inflationary (staking) and deflationary (burning) measures guard the KCAL token economy, and the ecosystem blossoms the KCAL supply will eventually reach its equilibrium. After this KCAL may potentially becoming deflationary — after which governance proposals can be submitted to avoid a too strong deflationary component draining the available supply.

For the full details, please refer to this article on the Phantasma Token Economy.

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