$DAG UNOFFICIAL TOKENOMICS (by $DAG community)

General
1

Dear Dagchads,

currently there is no updated tokenomics available, and it makes difficult to find some relevant information for both holders and potential new investors.

For this reason some of us (Fireflight, Phoenix070 and I) have started the initiative to create an Unofficial $DAG tokenomics, created and maintained by the $DAG community for the $DAG community.

This tokenomics includes only information related to the current situation, it is NOT a proposal for a new tokenomics or a new model. The aim is to collect and combine all the existing updated and applicable information in a single place which is easy to find, to read and to understand by the community.

The first release of the tokenomics (v.2.0.1) is in a very early stage, but it has a proposed structure and basic content. The expectation is that we, all together, contribute to complement and improve the document.

Any community member can contribute, either with technical information, or with diagrams to support the text, or just providing links or correcting typos. Any contribution is welcome.

As we are a large community, in a first stage, I will centralise all the change requests, just get in contact with me by telegram, discord or here and send me your charge request. I will process it and update the document accordingly. If this initiative has a lot of success and get that much attention that I cannot handle all the change requests, I will try to find a different way to manage the content. In any case, any proposal on how to improve this topic is also welcome.

Let me insist, this is NOT an official Constellation Network document, and it is NOT reviewed or validated by them. For sure the team can request changes, it will be highly appreciated, and they can also validate the document if they consider it appropriate, but currently it is NOT the case.

Now it is on you.

Link to the document:

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Great initiative guys :+1:

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Thank you for drafting this document.

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Hi all,

I wanted to edit the draft Serg, Fireflight, and Phoenix070 have put together but am finding myself kinda rewriting it, lol.

The suggestions (for that is all they are) below are based also on the original HIP-01 doc that Matthias wrote and which can also be found here on Hypercore.

Thus far I did p4 ‘History’, which I left mostly intact, and p5 ‘Governance’, which I strongly changed. The other pages I will post here as time permits…

Kind regards,
Geoff

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History

$DAG started as an ERC-20 token until Mainnet 1.0 was released the 1st of March of 2020.

There was a campaign during 2020 for swapping the $DAG ERC-20 tokens into Mainnet 1.0 tokens (1 to 1). A total of 2.093.588.685 $DAG were swapped. However, even today there are still some people who did not swap their old $DAG ERC-20 tokens, which are no longer valid. There is no possibility to swap them any longer and whoever is trying to trade them is a scammer.

The Mainnet 2.0 (HGTP) was released the 28th of September of 2022.

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Governance

Hypergraph network governance is based on the Hypergraph Improvement Proposal (HIP) process. A HIP comes as a design document that evolves from an idea to an actual proposal on which the community votes. Depending on the type of HIP, the parties involved are the author, the community, a sponsor, and the Hypergraph Core Developers.

Sponsors are nominated by each stakeholder group: Core engineering; L_0 Projects; Constellation Foundation; Community DAO; and Node Operators.

Authors first vet their improvement idea with the community. If the community finds that an idea carries sufficient weight, its author can propose it on https://hypercore.org and request a sponsor versed in the subject to jointly review and discuss the idea. Also other relevant parties should remain involved. This way the idea is developed into a draft and is assigned a HIP number. At this moment, the idea is endorsed and becomes an official HIP which will be put to the vote on Lattice.

There are three types of HIP:

  • Standard or Code: these are core proposals that involve changes to the HGTP protocol itself;

  • Process: these are surround proposals that involve structural changes to everything besides the HGTP protocol;

  • Informational: these proposals are not about new features but define and codify guidelines and best practices for the community.

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this sentence might be misleading, for me it sounds like they have not swap their tokens yet, but they may do it.

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Great! thank you! just copied all and directly pasted it into the document replacing the old text. I added the sponsor list as well.

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I’m now working on the $DAG supply page.

In the table the doc mentions founders allocation as 800.000.000, while the last sentence on the page states “founders burned all of their tokens. ~300.000.000 Tokens…”

Is this 300.000.000 a typo, or…?

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Also, in the validators section of that table it reads:

10-years, minting starts at Mainnet Launch

Is that mainnet 1.0 or 2.0?

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On the ‘Nodes’ page, last paragraph:

protocol called Tessellation developed using Scala

Is this the same as saying Tesselation is written in Scala?

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This is my source:

I would assume this was the amount of tokens they had at that time. Maybe @MateoGold as founder may confirm or bring some clarity as the link on the tweet is not valid any longer.

Captura de pantalla 2023-01-28 a las 7.59.52
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It is mainnet 1.0, I will add it.

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Yes, I will rephrase it.

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$DAG Supply

The $DAG supply is as follows:

Max Supply: 3.693.588.685

Current Circulating Supply (Jan’23): 2.737.358.970

The current circulating supply can be consulted using the following endpoint and dividing the value in “total” by 100.000.000:

http://l0-lb-mainnet.constellationnetwork.io/dag/total-supply

The $DAG tokens not yet in circulation are minted progressively until reaching the maximum supply in about 2030, 10 years after the release of Mainnet 1.0. For more details on this please check the Rewards section on this document.

The original $DAG distribution was as follows:

Token Distribution % Total Vesting Lockup
Founders 20,00 % 800.000.000 4 years, 25% vested 12 months from the start date, remaining 75% released in equal monthly installments thereafter. 4 years, 5% released at TGE, 20% released on 12/1/18, remaining 75% released in equal monthly installments thereafter.
Partners & Advisors 13,43 % 537.065.000 2 years, 25% released on 12/1/18, remaining 75% released in equal monthly installments thereafter
Foundation Tokens 26,32 % 1.052.810.165 Tokens issued to employees are subject to 4-year vesting schedule with cliff
Community Tokens 2,00 % 80.000.000
Validator Rewards 20,00 % 800.000.000 10-years, minting starts at Mainnet Launch 1.0
Private Sale 18,25 % 730.124.835 All tokens issued at a discount will be locked up until 12/1/18. For example, a purchaser with 15% discount will have 15% of tokens subject to lock up.
Total 100 % 4.000.000.000

However, the founders burned all of their ~ 300.000.000 tokens (7.2% of the supply) on the 4th of July of 2019, resulting in the current maximum supply of ~ 3.7 B $DAG.

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Nodes

To run a Mainnet 2.0 node, an operator needs to keep 250.000 $DAG as collateral. This amount is checked at every snapshot. Testnet nodes do not require any collateral.

Currently, both Mainnet 2.0 and Testnet require nodes to be whitelisted. No more nodes are accepted at present.

Hardware Requirements:​

  • 8 cores or vCPUs.
  • 16 GB Memory for running both Layer 0 and Layer 1.
  • 320 GB disk space for storing the Snapshots and logs.

Software Requirements:

The node requires a Linux Debian Based Operating System:

  • Ubuntu 22.04
  • Debian 11

Currently, more than 200 nodes validate the Mainnet 2.0 network. Testnet 2.0 consists of 50 nodes.

The nodes run the HGTP called “Tessellation”, which is written in Scala. Node operators can use a utility called nodectl to ease the installation and management of the node.

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Constellation can mint new $DAG tokens if they want - how does this affect the tokenomics?

No. Tessellation has included in its code the epochs, and after the last epoch the protocol will not mint any token. Changing this will require a full governance process and to be voted by holders as it is the same case in the most of the blockchains.

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constellation could have minted new tokens up until this last update
No they cannot. Tokens are minted by the protocol (Tessellation) running on the nodes, the protocol has all the logic coded and it is open source so it can be audited at any time. In addition all the wallet balances are visible on the $DAG explorer.

There is also an endpoint which let you check circulating supply, so you can always check if the increase of tokens match with the tokens minted by Tessellation:

The current circulating supply can be consulted using the following endpoint and dividing the value in “total” by 100.000.000:

http://l0-lb-mainnet.constellationnetwork.io/dag/total-supply

Please try to learn a bit more of the blockchain technology and read the tokenomics again, it will help you to solve the most of your questions.

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First, don’t accuse me of not being honest.
Second, I have never heard Ben stating they minted tokens for stardust, please send the evidence.
Third, I told you, code is open source, wallet balances are public info, circulating supply is public info… I don’t really know how they could technically mint tokens without impacting the circulating supply, increasing the balance of the wallets, modifying the rewards system coded in tessellation which is linked to the max supply.
Fourth, please do not use this threat which cost me time and effort for the benefit of the community to spread hate and fud. Instead use twitter, telegram, Reddit, or any other social network you prefer.

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Me? I just put together public information. But thanks for trolling.