Artela Tokenomics
Jan 10, 2025
Featured
Artela Network is designed to be next generation high-performance, modular and scalable blockchain for fully on chain ai agents. The key technology innovations including full stack parallelization, multi-VM on chain extensions and elastic blockspace will push the boundaries of what blockchain technology can achieve with native AI integration. After multi-year challenging engineering development and months of testnet operations, Artela Network is ready for its prime time: to bring in mass scale of human users and AI agents on chain.
Today, we’re equally excited to unveil the economic and incentive structure of Artela — known as Artela’s tokenomics. Artela’s economic model has been thoughtfully crafted with a forward-looking approach, inspired by the latest in blockchain economics and incentive structures. Our goal is to align incentives across all participants within the Artela ecosystem, ensuring that our platform can support a vibrant, thriving digital economy with billions of active participants.
1. Overview of ART token
1.1 ART at a glance
1.2 Role of ART
Artela Network's native asset, ART, is a cornerstone of the innovative blockchain platform designed to support transaction processing and decentralized applications. Here are the essential roles of ART within the Artela Network:
Staked: ART can be staked or locked up to participate in the proof-of-stake mechanism. By staking ART, users contribute to the security and stability of the network while earning rewards, thus promoting active participation in the blockchain’s maintenance.
Gas Fee: ART is utilized to pay gas fees, the costs associated with making transactions and executing other operations on the Artela Network. This ensures the network's efficiency and optimal resource allocation.
Governance Power: Holding and staking ART provides users with governance power within the ecosystem. This includes the right to vote on key decisions such as protocol upgrades and the use of the community pool, giving the community direct influence over the network's direction.
Liquid Asset: ART is a versatile and liquid asset within the Artela Network economy, ensuring it can be easily traded, exchanged, or utilized within the ecosystem. This liquidity facilitates smooth transactions and interactions among users.
In summary, ART is not merely a token but a fundamental component of the Artela Network, enabling security, governance, and liquidity throughout the ecosystem. As the network expands, ART’s significance will continue to grow, driving innovation and enhancing community engagement in the blockchain space.
2. Staking, Governance & Supply
Artela Network is a proof-of-stake blockchain designed to innovate transaction processing and decentralized applications. Built on advanced blockchain technology, Artela Network supports in-protocol delegation with a carefully selected validator set to ensure network security and efficiency.
Staking ART as a validator or delegator enables participants to earn staking rewards from the network. Validators charge a fee to delegators, allowing them to receive a percentage of the staking rewards.
2.1 Inflation
ART inflation starts at 8% annually and decreases by 1% every year until it reaches the long-term issuance rate of 0%. Exact annual inflation rates can be found in the diagram below.
In summary, ART's inflation model is designed to ensure a gradual reduction in token issuance over time, providing controlled and predictable supply growth. This approach helps to stabilize the network's economy and incentivize early participation while ultimately aiming for a deflationary model that supports long-term value preservation for ART holders.
2.2 Decentralized Governance
Network Parameters
ART holders have the ability to propose and vote on governance proposals that can alter specific network parameters. This democratic mechanism ensures that all members of the Artela Network community can contribute to shaping the network's evolution. For detailed information, you can explore the complete list of parameters subject to change and those that remain constant. Additionally, guidance is available on how to submit and participate in governance proposals, enabling active involvement in the network's decision-making process.
2.3 ART Allocation
Artela Network will have a total supply of 1,000,000,000 ART（Due to PoS network inflation algorithm, the total supply of ART tokens may have slight fluctuations based on each year’s staking rate), distributed across several categories as detailed in the accompanying chart and table below. Importantly, the total supply of ART is fixed, ensuring that there will be no additional issuance beyond this initial amount.
Community: 62%, including:
Airdrop: Distributions for participants in Artela’s development, test and growth. 4.5%
(Wave1 at TGE 2.1%, Wave2 in TGE+6months 1.1%, Wave3 in TGE+12months 1.3%)
Network Staking: To secure the long term viability of Artela blockchain. 28.5%
Eco-system Development: Ai agent and dApp builders. 23%
Community Reserve: Future expansion reserve. 6%
Team: Core development team. 15%
Investors: Institutional and individual investors who funded the project. 18%
Early Contributors: Advisors/Partners/Builders. People giving significant early support. 5%
2.4 Unlocks
To provide a clear understanding of the token release schedule, the following diagram outlines the unlock periods for ART. This schedule ensures a controlled and transparent distribution of tokens over time, aligning with the long-term goals of the Artela Network. By adhering to this structured unlock process, we aim to foster stability and build confidence among ART holders, while simultaneously supporting the sustainable growth and development of the ecosystem.
Unlock schedule by category is described in the table below.
3. Final Thoughts
Artela’s economic model is specifically designed to work in close synergy with its technical architecture. Our goal is to build an economic system that can scale effectively to support billions of users and ai agents in web3. This requires a system that’s not only technically advanced but also economically sustainable long term. ART token is the cornerstone of all this. We try our best to make fair and reasonable initial distributions. What’s more exciting is the road ahead—that we are starting the journey together to grow the eco-system and entire value network.
