- Shimmer is a community-owned network with a fair token distribution model, providing equal opportunity for all to join the network with no hidden allocations or VCs.
- The Shimmer token ($SMR) is a fixed-supply, sustainable token used for transaction fees, storage deposit, and on-chain voting.
The Shimmer community aims to create a long-term sustainable ecosystem that benefits all participants. The network’s fair token distribution model provides an equal opportunity for all to join the network, with no lock-ups, hidden allocations, or VCs.
This ensures that the network remains healthy and vibrant. The Shimmer token ($SMR) is a critical component of the Shimmer ecosystem, including the ShimmerEVM, and has a fixed supply with no inflation, making it a sustainable and long-term oriented token.
The $SMR token is used as a medium of exchange and unit of account within the ecosystem, as well as for storage deposit and gas fees for transactions and other operations within the ShimmerEVM.
✨#Shimmer is a community-owned network with one of the fairest token distributions. $SMR tokens were distributed with no lock-ups, hidden allocations, or VCs. This provides an equal opportunity for all to join the network.✨🙌
Read about the #Tokenomics 🧵 ⬇️ 1/7 pic.twitter.com/pfbSggsuUd
— Shimmer (@shimmernet) April 10, 2023
The Importance of Shimmer Tokenomics
The Shimmer token is an essential part of the Shimmer ecosystem, serving as a governance token for on-chain voting. The community voted in July 2022 to increase the token supply to set up an ecosystem fund to support the growth of Shimmer, putting the total supply to 1,813,620,509 SMR, with the circulating supply at 80% of that (1,450,896,407 SMR).
The remaining 20% of tokens (362,724,102 SMR) is reserved for the ecosystem fund and spent upon DAO approval. This ensures that the ecosystem has the resources it needs to continue to grow and develop over the long term.
Shimmer’s tokenomics provide a sustainable and fair ecosystem for all participants, making it an attractive option for those looking for a community-driven network. Its fixed token supply ensures that it has a long-term outlook, and the absence of inflation prevents the token from losing value over time.
The Shimmer community’s commitment to building a healthy and vibrant ecosystem with incentives aligned between all participants ensures that everyone benefits from its growth. Overall, Shimmer’s tokenomics offer an excellent example of how to create a sustainable and fair network that benefits all stakeholders.