# Tokenomics ### Overview The XEQM network runs on a pure Proof-of-Stake economic model designed for predictability, transparency, and long-term sustainability. Every parameter described on this page is protocol-defined, publicly verifiable, and auditable by anyone. *** ### Supply The exact circulating supply of XEQM is known with mathematical certainty. | Metric | Value | | ----------------------------------- | ---------------------------------------------------------------------------------------------------- | | **Circulating supply** | **276,786,542 XEQM** | | **Verification** | Publicly verifiable ledger, cryptographically fingerprinted (SHA256) | | **Future mints** | None planned | | **New XEQM enters circulation via** | Service node emissions and governance wallet allocations — both fixed, both public, both predictable | **A note on token burns:** Monero-based architecture does not support cryptographic burns as the term is typically used. We will not misrepresent this. Supply management comes from fixed genesis supply, predictable emissions, and staking demand — mechanisms we can honestly deliver. *** ### Block Emissions The network produces a new block every **60 seconds** and awards **8.25 XEQM** to the selected service node. | Parameter | Value | | --------------------- | ----------- | | Block time | 60 seconds | | Block reward | 8.25 XEQM | | Daily block emissions | 11,880 XEQM | *** ### Governance Emission The protocol allocates a separate governance emission to the treasury wallet, providing a stable, predictable funding model for development and ecosystem support. | Parameter | Value | | -------------------------- | -------------- | | Daily governance emission | \~17,857 XEQM | | Weekly governance emission | \~124,999 XEQM | The governance wallet address and view key are published. Anyone can verify the balance at any time. *** ### Distribution Model All newly issued XEQM follows a straightforward allocation. These are target percentages that guide long-term planning. The protocol does not hardcode them, and governance can adjust them over time. | Allocation | Share | Purpose | | ------------------------- | ----- | ------------------------------------------------------------ | | Service Node Rewards | 40% | Compensation for securing the network | | Core Protocol Development | 25% | Blockchain, XEQMLabs platform, and core network services | | Marketing and Awareness | 15% | Network visibility and adoption | | Ecosystem and Community | 10% | Grants, bounties, community rewards, and integration support | | Security and Audits | 5% | Audits, security reviews, and reliability testing | | Long-Term Reserve | 5% | Stability, emergency needs, or long-term operations | *** ### Developer Platform Economics XEQM is the utility token that powers the network and the access token for the XEQMLabs developer platform. This creates three distinct demand sinks operating simultaneously: **1. Service node staking** locks the largest share of supply. At the 700-node target with 200,000 XEQM per full node, approximately 140,000,000 XEQM (51% of supply) is locked in service node collateral. **2. Developer tier staking** creates ongoing buy pressure from new market participants who must acquire XEQM before they can access the platform. **3. API call consumption** creates a continuous velocity layer as applications process requests above their tier allowance. | Tier | Stake Required | Included Calls | | ---------- | -------------- | ------------------------------------------------- | | Free | None | 10,000 testnet calls/month | | Builder | 1,000 XEQM | 100,000 mainnet calls/month | | Production | 10,000 XEQM | 1,000,000 calls/month, webhooks, priority support | | Enterprise | 50,000 XEQM | Unlimited calls, custom rate limits, SLA | {% hint style="info" %} \*API tiers, stake require, and included calls may change {% endhint %} Oracle data feed access aligns with the existing tier structure. Production and Enterprise tier developers gain access to oracle outputs as part of their included capabilities. Oracle-heavy workloads that exceed standard rate limits consume XEQM at the same per-call model as other API traffic — creating a fourth demand layer on top of the three tiers described above. *** ### Platform Fee Distribution Every application built on the platform, whether by XEQMLabs or a third-party developer, generates fees when used. Those fees flow back into the network: | Recipient | Share | Notes | | -------------------- | ----- | --------------------------------------------- | | API Node Operators | 35% | Distributed proportionally by requests served | | XEQMLabs Treasury | 35% | Funds ongoing platform development | | Community Governance | 30% | Community-directed allocation | API nodes are independent infrastructure. Any technically capable operator can run an API node, register with the platform, and begin earning a share of platform fees proportional to the requests they serve. Service node operators who also run an API node earn both block rewards and platform fees — two separate and additive income streams. Operators who additionally take on oracle verifier duty earn a third additive reward stream from oracle fees. *** ### Supply Dynamics at Scale | Parameter | Value | | -------------------------------------- | --------------------------- | | Circulating supply | **276,786,542** XEQM | | Supply locked at 700 nodes (200K each) | \~140,000,000 XEQM (51%) | | Estimated freely circulating | \~136,000,000 XEQM | | Solo operator APY at 700 nodes | \~3.1% (block rewards only) | The freely circulating float gives exchange markets, developer onboarding, and ongoing API consumption enough liquidity to function without constraining platform growth. *** ### Long-Term Inflation Strategy Block emissions are stable and predictable, but they are not intended to remain at current levels permanently. As the XEQMLabs platform generates sustainable fee revenue, the network will work toward reducing governance emissions and relying less on token issuance for operational funding. ### **The Flywheel** Most crypto projects fund themselves by printing tokens forever. The more the network grows, the more it dilutes the people who believed in it earliest. XEQMLabs is built on a different model — one where growth makes the token stronger, not weaker. It starts with developers. A developer stakes XEQM to access the platform and builds a privacy-native application — maybe a credential verifier, a private voting tool, or a confidential data feed. Users adopt that application. Every API call it processes generates a fee. Those fees don't disappear. 35% flow directly to the operators running infrastructure. 35% fund continued platform development. 30% go to community governance. Operators earn more, so more operators join. Better infrastructure means more developers can build, and more applications mean more fees. Here's where it compounds. A treasury funded by real platform revenue needs less token issuance to operate. Governance emissions can come down. Less inflation means a stronger token. A stronger token and a growing ecosystem attract the next wave of developers — and the cycle accelerates. The result is something rare in crypto: every participant pulls in the same direction. Developers, operators, holders, and the team all benefit from the same thing — more applications, more usage, more value. Nobody wins at someone else's expense. That's not a promise. It's a design principle built into the architecture from day one. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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