This blog is now an archive. Find content from Hiro here and Stacks news and announcements here.

Stacks Token Economics: Improved Mining Algorithm & Minting Schedule

In 2017, we created a vision for the future of our technology with the Blockstack Whitepaper 1.0. We completed the 2017 Blockstack token offering with a focus on regulatory frameworks.

We’ve learned a lot since then. We released the version 2.0 of the Blockstack whitepaper last month. We’re now proposing improvements to our token economics.

In the last two years, there has been a lot of progress in the maturing field of token economics. We now have different models and analysis frameworks that were not available before. Given the potential offering to the general public in 2019, the hard-fork required to distribute those Stacks tokens, and the potential start of mining on the network in late 2019 or early 2020, we felt it was the appropriate time to take a deep dive on the Stacks token economics model.

Starting in Q1 2019, we sought out relevant experts and performed a full economic audit of our distribution model. We commissioned Prysm Group to conduct an economic audit and help establish a robust economic model. Our goal was to identify any potential long-term issues and help the ecosystem avoid any problems related to token inflation and volatile network activity.

In addition to the Prysm Group, we also sought feedback from Blockstack core developers, independent entities (like New Internet Labs), the Blockstack PBC board, and other domain experts.

The relevant details of the new adaptive mint and burn mechanism and changes to token economics are available here. We’d love to hear your input on the forum. If you prefer to send your feedback privately, feel free to reach out directly to me.

 

Forum Discussion

Provide Feedback on Adaptive Mint/Burn on the Forum

 


Rule 255 Legend This communication may be deemed “testing the waters” material under Regulation A under the Securities Act of 1933. We are not under any obligation to complete an offering under Regulation A. We may choose to make an offering to some, but not all, of the people who indicate an interest in investing, and that offering might not be made under Regulation A. We will only be able to make sales after the Securities and Exchange Commission (SEC) has qualified the offering statement that we have filed with the SEC. The information in that offering statement will be more complete than the information we are providing now, and could differ in important ways. You must read the documents filed with the SEC before investing.

No money or other consideration is being solicited, and if sent in response, will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement filed by the company with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification.

An indication of interest involves no obligation or commitment of any kind.

Any person interested in investing in any offering of Stacks Tokens should review our disclosures and the publicly filed offering statement and the preliminary offering circular that is part of that offering statement at stackstoken.com.

Blockstack is not registered, licensed or supervised as a broker dealer or investment adviser by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) or any other financial regulatory authority or licensed to provide any financial advice or services.

Muneeb Ali

Muneeb Ali

Dr. Muneeb Ali is the founder of Stacks, a decentralized network that brings apps and smart contracts to Bitcoin. He serves as the CEO of Hiro PBC, a Public Benefit Corp that builds developer tools for the Stacks blockchain. He has raised $75 million USD in funding from investors like Union Square Ventures, Y Combinator, Lux Capital, Winklevoss Capital, and others. Hiro (formerly Blockstack PBC) was featured in the CNBC's list of 100 promising startups to watch. Muneeb received his Ph.D. and Masters in Computer Science from Princeton University. His Ph.D. thesis was nominated for the ACM SIGCOMM dissertation award by Princeton University. Muneeb gives guest lectures on cloud computing at Princeton and his research publications have over 1,300 citations. He is one of the main characters in George Gilder's book Life After Google and was a technical advisor to the HBO show Silicon Valley.