I have some concerns about the possibilities of market manipulation by early investors, as well as the potential for centralization and a decline in decentralization and security. All of these issues are discussed in this review.
As of now, there are around 16.4 billion ZIL in circulation, out of the total supply (22b).
During its launch, Zilliqa allocated 60% of the total supply, with 10% reserved for Anquan Capital, 12% for Zilliqa Research, and 5% for current and future team members. The remaining 40% will be generated through mining.
Zilliqa's development team anticipates that all tokens will be mined within a decade of launch, with gradually decreasing mining rewards. The initial token distribution is divided into three parts: 30% for Early & Community Contributions, 40% for Mining Rewards, and 30% for Company, Team, and Agencies. However, as 60% of the total token supply was generated before launch, I have concerns about centralization and the potential for market manipulation by early investors.
In terms of funding rounds, Zilliqa raised $19.77 million in its Community Sale in December 2017, with an average price of $0.0034508, and $2.23 million in its Early Contributors Sale in January 2018, with an average price of $0.0038807.
I think that the decreasing mining rewards over time may discourage miners from continuing to support the network, potentially leading to a decline in security and decentralization. Also, the actual timeline for all tokens being mined may differ from what is currently projected by the Zilliqa team.
If you're considering investing in Zilliqa, knowing these details can help you make a more informed decision. Show Less
