Find out more about our utility and governance token.
What’s $CHIRP and what’s it for?
$CHIRP is the token for Chirp Network. Learn more about some of its main purposes:
Using The Network
Access to the network is granted through the purchase of different Access Badges: from monthly subscriptions for various devices to pay-per-data. Different tiers grant different network benefits.
Pricing will be denominated in local currency, such as Euros and US Dollars. In order to pay for the Access Badges, you’ll need $CHIRP. This is how $CHIRP enables access to the network.
Accessing The Ecosystem
$CHIRP will act as a gateway to unlock capabilities and participation within its Ecosystem. As the platform grows in terms of adoption, it will become more and more attractive to partners who will want to extend its capabilities by building on top of it to add further products and services. Our token will be the key to make that possible. As a result, it will be the basis of our framework for partnerships and all Web3 initiatives.
Rewarding Network Participants
As per the previous article (“Everyone has a role in Chirp’s Economy”), stakeholders are rewarded for their role in growing and sustaining Chirp’s overall Economy. As a result, most of the token emissions are destined to reward network participants.
Deciding On The Future Of The Network
In the Web3 ethos, Chirp is an open and participatory system. If different stakeholders truly own the system, they must determine its future and direction. This is why we have a governance mechanism in place, so everyone can have a say in Chirp’s evolution.
And there’s more.
What is $CHIRP’s supply?
300,000,000 (300 million) tokens that will be minted over a period of 10 years.
How will it be distributed?
The tokens are distributed to network stakeholders (Network Keepers, Investors, Advisors, Team, Token Reserve and Token Treasury ) as they are minted, with a decreasing percentage of emissions being distributed to Network Keepers via proof-of-coverage. As a result, over time a higher percentage of emissions will be allocated to data transfer as a way to reflect higher network adoption, resulting in a healthier economy.
New emissions start at 17% of the projected supply per annum, and are reduced every two years. Part of the logic is to factor in the cost decrease cycle of the gateways and its underlying technology.
Why are we reducing the annual supply every two years?
Similar to Bitcoin, $CHIRP distribution follows a reduction mechanism. This means the annual supply of new bitcoins (in this case, $CHIRP) is reduced. Part of the logic of the reduction is to factor in the cost decrease cycle of the gateways and its underlying technology. It is also used to accelerate network supply (measured by the number of gateways), incentivizing growth from an early stage.
Reducing the rate of inflation also tends to impact price formation. The more scarce the asset, the more valuable it becomes.
What about early backers?
This project is only possible with the relentless support from its early backers, but its main premise is being built for the long-run. This is why Investor rewards will be fully distributed over a 4-year period (which excludes the period of investment prior to the Token Generating Event) and Team rewards will take 10 years to be distributed.
Rewards play an important role in bootstrapping network growth. Unlike other projects that have rewards policies that push participants away or that waste rewards, we carefully designed these incentives to ensure project longevity and alignment with stakeholder goals. This is why the rate of token emissions is dynamic. It does so to reflect the expected balance between supply and demand for $CHIRP.
Most importantly, at least 50% of all token yearly emissions are granted to Network Keepers and this percentage keeps increasing until it reaches 75% of all yearly token emissions.
Above all, $CHIRP is designed to incentivize the rollout of a global decentralized wireless network based on complete, secure and seamless data coverage. Its distribution schedule is designed to balance supply and demand for the token, as this is key for generating long-term value. Most importantly, it is designed with utility as its core.