If you want to understand why OctaSpace tokenomics are excellent…
Keep reading; I will build up the case one step (star ⭐️) at a time so you won't miss anything.
- This is a COIN (not a token) with a fixed supply of 48 million and serves as the native coin for their blockchain(s).
This earns it the first star. ⭐️
- $OCTA was a Fair Launch. No Pre-Sale. No early investors.
This earns it the second star. ⭐️⭐️
- Octa.Space has no team tokens!
They only maintain a developer account funded by an ever-decreasing contribution per block per era, which decreases from 0.5 OCTA per block to 0.3 OCTA per block until the emission schedule is complete in 2027.
In my view, this is an innovative way to fund a project that is entirely reliant on the project's success.
Although this could be worth two stars, I'm assigning it just one, so this is our third star. ⭐️⭐️⭐️
- The project has an excellent staking mechanism requiring nodes to lock up a considerable 100,000 OCTA (worth over $43K at the time of writing).
This setup should be beneficial for the network and the token hodlers. Currently, there are approximately 195 active nodes.
Note not all nodes have the required 100K OCTA to earn rewards. There are currently only 73 nodes with the qualifying balance, meaning that 7.3 million tokens, or $3.1 million, are locked into staking!
The current circulating supply is 19.7 million out of a fixed 48 million (41.2%).
So, almost 37% of the circulating tokens are locked into staking. Amazing!
This could also be worth two stars, but it only gets one, making it our fourth star. ⭐️⭐️⭐️⭐️
- Value Capture: I consider this the most crucial aspect, as it ties the project's success to the token's value (price).
For Octa.Space, this extremely important aspect, and is equally extremely understated in the documentation.
Here is the modest wording you will find:
"NATIVE COIN: OCTA serves as the native coin of the OctaSpace project, acting as the primary payment instrument for services, rewarding node owners, and distributing dividends to OCTA holders."
What you should focus on here is "acting as the primary payment instrument for services." These eight words are incredibly powerful yet easy to overlook.
What does this mean? If you want to use the services under Octa.Space, you need to purchase and pay in $OCTA. 🚀
Why do I think this should be worded more strongly?
Well, it's not the "primary" way to pay for services. It's the ONLY way to pay for services.
In my opinion, it doesn't get any better than this for value capture. This aspect alone is worth all five stars, but it's only the fifth and final star in this comprehensive 5-star review. ⭐️⭐️⭐️⭐️⭐️
I hope you've enjoyed this deep dive into Octa.Space's tokenomics. I genuinely believe that when you combine these components, especially a fixed supply, and full value capture, there's virtually no limit to the token's price. This project could be in full-price discovery mode for a long time.
Helpful links and resources:
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If you're not sure about the difference between a coin and a token, here's a great resource: https://coinmarketcap.com/alexandria/article/coin-vs-token:-what-is-the-difference
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What is Value Capture? Please see my blog post for more detail: https://cyrator.com/post/64763f738def171f2601cee3
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Here is the DEV wallet for transparency: https://explorer.octa.space/address/0xfD208bfeD3fDfCa58E67184e3da005C53A8Ad080
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Here is the rewards wallet for transparency: https://explorer.octa.space/address/0x386525bf5f157ba40362448B9Ab0DE3DCceBc115 Show Less
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