Chiliz (CHZ) Announces Major Upgrade: Chiliz Chain Tokenomics 2.0 Announced!

Chiliz has announced that it has upgraded Chiliz Chain's tokenomics model to 2.0.
With this upgrade, it is aimed to increase the long-term sustainability of the ecosystem and community participation.
The upgraded model includes a declining annual inflation rate and a continuous token burn mechanism.
As Chiliz (CHZ) nears the end of Chiliz Chain's inaugural year, it has announced a sweeping upgrade to its tokenomics model, from initial version 1.0 to a more sophisticated and dynamic version 2.0. Announced at the beginning of 2024, this upgrade is part of the platform's expanding ecosystem and commitment to adapting to the evolving needs of its community.
Chiliz Chain Tokenomics 2.0 Announced
The Chiliz Chain Tokenomics 2.0 announced by Chiliz focuses on increasing participation in governance, encouraging community participation, and ensuring long-term sustainability. Its upgraded tokenomics model brings with it multiple significant changes, including a gradually decreasing annual inflation rate and a continuous token burning mechanism.
In its previous tokenomics model, Chiliz Chain faced some limitations in incentivizing long-term participation and encouraging broader community participation due to its fixed inflationary nature. Recognizing the need for strategic alignment with leading Layer 1 networks around the world, the platform has introduced Chiliz Chain Tokenomics 2.0 to increase the utility and longevity of its native asset, CHZ, within the ecosystem.
Key elements of the Chiliz Chain Tokenomics 2.0 mechanism include an initial annual base inflation rate of 8.80%, which gradually decreases over time according to a meticulously crafted formula. This formula, which includes a declining inflation model, will provide a rapid decline in the inflation rate in the first years, bringing stability to the network at an annual inflation base of 1.88 percent after 14 years. In addition, the implementation of EIP-1559 will ensure that the majority of accrued gas fees are burned at the protocol level, stabilizing inflationary pressure.
The implementation of the upgraded tokenomics model marks a significant evolution for the Chiliz Chain ecosystem and signals a strategic realignment for sustainable growth and improved token usage. Chiliz Chain seems to be aiming to strengthen its position as the leading Blockchain platform for the engagement of sports and entertainment fans by providing long-term funding for the development of the ecosystem while ensuring sustainable ecosystem growth, incentivizing community engagement with higher rewards.
Chiliz Chain's Latest Supply Roadmap Also Shared
On the other hand, Chiliz also shared a summary of Chiliz Chain's supply roadmap. Accordingly, a strategic allocation will be made, with 65% of the newly minted tokens allocated to validators/proxies, 10% to the community treasury and liquidity providers, and 25% to the ecosystem and operational distribution.
This allocation plan aims to encourage community participation, create and support a strong DeFi environment within the ecosystem, and provide sustainable funding for ecosystem development and community initiatives.

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