From the very beginning, the AllianceBlock vision for the world’s first decentralized capital market was always shaped around the AllianceBlock token (ALBT) — a multi-functional token that forms the backbone of the AllianceBlock Protocol and acts as the main medium of exchange for the AllianceBlock ecosystem.
ALBT is designed to maximize the influx of value to the AllianceBlock ecosystem, and incentivize inclusion, participation, and growth by acting as a reward system for those that contribute value to the AllianceBlock market, such as by rating projects, helping to maintain the network by running a node, or delegating their tokens (and voting power) to pre-existing nodes.
Managing Supply and Promoting Growth
The AllianceBlock token is built into every transfer of value within the AllianceBlock ecosystem, and users, institutions, and data providers will pay in ALBT to issue new structured products , offer datasets and live data, and launch investment opportunities. Likewise, every transaction conducted on AllianceBlock will have at least part of its fees paid in ALBT, ensuring there is always constant demand for the token, while gradually removing ALBT from circulation.
The AllianceBlock Foundation will take measures to stimulate the growth of the AllianceBlock ecosystem by performing a number of crucial functions that will work to effectively balance the token demand with supply. This includes buying back tokens when the price is decreasing in an unnatural way, monitoring the current token distribution and market sentiment to adjust the ALBT distribution strategy, and stimulating the network by distributing fees where they are needed most.
AllianceBlock will permanently burn up to 50% of the fees collected by transactions completed under the AllianceBlock Protocol each quarter. Moreover, AllianceBlock BV — the parent firm behind the AllianceBlock ecosystem — will use at least 10% of its revenue to burn ALBT tokens — with the potential for this to increase up to 25%.
To provide additional value to network participants and stakeholders, AllianceBlock will be operating a staking reward system, which sees holders of institutional nodes, data nodes, and service nodes rewarded for locking up ALBT tokens. Regular investors and participants that don’t want to (or cannot) operate their own node can instead delegate their stake to pre-existing nodes. The aim here is to reach a staked asset ratio of 60% and provide participants with a stable yield of around 7–9% per annum — in line with other already established stakeable assets.
It is anticipated that 15% of the total token supply will forever remain within the node staking intrasystem and never enter general circulation. By removing more ALBT from supply than enter circulation each year, the token is designed to be deflationary.
AllianceBlock is building the first globally compliant decentralized capital market. Incubated by three of Europe’s most prestigious incubators: Station F, L39, and Kickstart Innovation in Zurich, and led by a heavily experienced team of ex-JP Morgan, Barclays, BNP Paribas, Goldman Sachs investment bankers, and quants, AllianceBlock is on the path to disrupt the $100 trillion securities market with its state-of-the-art and globally compliant decentralized capital market.
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