ZEDX Coin Economics

Currently, the ZEDX coin supply follows a mildly inflationary model.

With each new block created every 5 seconds on the ZEDXION network, the validator who creates it, along with the delegators who have staked with them, receive block rewards in newly issued ZEDX coins. This approach is designed to secure the network’s consensus mechanism.

The reward amount per block is set to ensure that, annually, the total supply of ZEDX increases by approximately 5%.

The primary reason for choosing an inflationary model at this early stage of network development was to establish predictable revenue flows for network validators and delegators. If validators and delegators had to rely solely on transaction fees as rewards for staking and validating, it would be harder for them to predict future returns, given that transaction activity on the network can vary greatly. This revenue predictability is a key component of the blockchain consensus theory on which ZEDXION’s consensus mechanism is based.

Substantial block rewards also help maintain low transaction fees on the network, which supports broader adoption of ZEDXION.

Potential Inflation Reduction

A ZEDXION Improvement Proposal aimed at reducing ZEDX inflation is currently under community discussion. If approved by the validators, the proposal would reduce the annual inflation rate to 2% in the network’s third year, with fixed token issuance amounts in subsequent years.

You can find the proposal text and community discussion here.