The Alaya Economic Model
1 About Alaya Network
PlatON is designed to become the next-generation of distributed financial infrastructure. With two and half years of development on top of an eight-month technical testing on the Byleyworld test network, we decided to further expand our products towards distributed finance. The original purpose and mission of blockchain technology are to better serve global inclusive finance.
To realize this great vision, Alaya was launched to provide a safe, compliant, and efficient “sandbox” for developers and participants dedicated to various types of DeFi inclusive finance. Alaya is the prelude of PlatON, as well as a bridge connecting distributed and traditional finance.
Communities are encouraged to participate in the governance of testings. Alaya is positioned as a testing ground for innovative technology and distributed finance, and PlatON will focus more on serving financial institutions across the globe and ultimately building up a multi-level business model of finance.
The native Token ATP on the Alaya network is a technical tool with an initial price of zero, and, is only used as a measurement for this round of operation testing.
1.ATP is a test chain tool with an initial price of zero, representing the governance rights and interests of the test chain;
2. \ATP is for the Alaya network internal use only. It does not have or support other circulation functions.
Initial Issuance and Allocation
Alaya will have an initial issuance of 100 million ATP. They are allocated as following
• Ecosystem Development Fund: 40%, used to encourage and support Alaya’s ecosystem development, including Dapp developer rewards, ecosystem cooperation, channel development and user incentives;
• Validator Development Fund: 30%, used to incentive validator and the development of validator-related tools;
• Community Operation Fund: 20%, used for Alaya’s network brand development, marketing, legal compliance and daily operation;
• Technology Innovation Fund: 10%, used to reward technological innovations and bug reportings of applications on the Alaya network.
An annual growth rate of 5% in issuance will be issued to facilitate the sustainable development of the community of which:
• 40% goes to the Staking Incentive Pool;
• 50% goes to the Ecosystem Development Fund;
• 10% goes to the Community Operation Fund.
The minimum pledge amount for a validator is 10,000 ATP.
Seven foundations will be used as Alaya’s initial validators. Each will pledge 10,500 ATP which will come from the Community Operation Fund.
This is primarily for fostering new validators, rewarding their stable operations, maintaining their daily operation and facilitating the development of related tools, as well as governance-related incentives.
Validators can submit their applications to the LatticeX Foundation through official channels. Validators that pass the audit can obtain 10,100 ATP for the initial pledge. 250 validators will be fostered first, with a total amount of 2.525 million ATP.
The validators in stable operation will be rewarded on a regular basis to sustain their stable operation in the long run. The total amount of incentives for validator operation is 20 million ATP; an incentive cycle will be one month. The evaluation criteria and the payment rules for the next cycle will be issued on a monthly basis.
Validators, developers, and users who actively participate in governance, validator community building and validator tools development can receive ATP rewards, with a total amount of 7.475 million ATP.
The Ecosystem Development Fund will be used to support the ecological development of Alaya, including but not limited to the Alaya Grants+ program to fund Dapp developers, as well as ecological cooperation, channel and user contribution incentives, community building and training, etc.
Alaya encourages and supports various innovative Dapp projects. After submitting an application to the LatticeX Foundation and getting approved, Dapp developers can obtain additional ATP in addition to the LAT and other monetary fundings to encourage their “experimental” applications on the Alaya network.
The total amount of ATP incentives is 20 million ATP, its specifics include:
• Funds to the project: the developers can submit materials to apply for funds for project development and testing. The amount for each project is 100,000 – 1 million ATP.
• Subsidies to users: Developers can apply for additional ATP from the Foundation according to their actual business characteristics and size in order to subsidize users’ transaction fees, encourage users to participate, etc. The amount for each project is 100,000 – 2 million ATP.
Alaya will invite more eco-partners and community users, encouraging them to join us in organizing various activities and training sessions. A total of 20 million ATP will be used to reward those who make significant contributions.
The Community Operation Fund will be used for Alaya network brand building, marketing, legal compliance and daily operation. ATP for other Grants programs, such as the marketing and operation, will also come from the Community Operation Fund.
The Technology Innovation Fund will be used to reward technological innovations and bug reportings of applications on the Alaya network. Technological innovations for the infrastructure layer is funded by the Grants Program for the main network instead of the fund.
The LatticeX Foundation will provide 500 million LAT to support the development of the Alaya network. The LAT will come from the reserved pool for the PlatON main network and the developer fund.
The LAT incentive program will be announced and executed in phases. In each phase, different rules will be formulated depending on the development of Alaya to encourage developers, users and validators on the network while guiding the healthy development of the ecosystem.
Please refer to the PlatON developer documentation: