💰Tokenomics

Revised Tokenomics

The Locust tokenomics model is designed to ensure sustainability, incentivize early adopters, and reward ongoing participation while driving liquidity and long-term value for the network. The distribution and use of tokens are structured as follows:

1. Initial Token Allocation

80% of Tokens to Liquidity:

• The majority of tokens (80%) will be allocated to establish liquidity on decentralized exchanges.

• This ensures a stable trading environment, providing users and buyers with seamless access to tokens and reducing market volatility.

20% of Tokens for Initial Adopters:

• The remaining 20% will be distributed among the early adopters over the first month of network operations.

• These rewards will incentivize users to participate in the prototype phase, provide feedback, and contribute to the growth of the Locust ecosystem.

2. Long-Term Token Distribution

Once the initial token allocation is complete, new tokens will enter circulation through a buyback and redistribution mechanism:

• Buybacks with Revenue from AI Data Sales:

• As the network earns revenue by selling scraped and processed data to AI companies, a portion of this revenue will be used to buy back Locust tokens from the market.

• The purchased tokens will then be redistributed to active bandwidth providers and contributors, creating a sustainable reward model.

• Continuous Incentives:

• Bandwidth providers will receive tokens proportional to their contributions, ensuring ongoing participation and network growth.

• This approach ties token distribution directly to the network’s success, aligning incentives for all stakeholders.

3. Key Features of Tokenomics

1. Sustainable Supply:

• By using buybacks for token redistribution, the network maintains a balanced token supply and prevents inflation.

2. Incentive for Early Participation:

• Initial adopters receive significant rewards, encouraging rapid user onboarding and fostering community growth.

3. Revenue-Driven Circulation:

• Token availability in the market is tied to actual revenue generation, ensuring that the token’s value reflects the network’s success.

4. Liquidity First:

• Allocating 80% of tokens to liquidity ensures that users can easily trade tokens and that the market remains robust.

4. Benefits for Stakeholders

• Bandwidth Providers:

• Consistent rewards for contributing bandwidth, with earnings tied to network demand and revenue.

• AI Companies:

• Transparent and efficient access to high-quality, decentralized data using Locust tokens.

• Community and Token Holders:

• Strong market liquidity and a sustainable token economy foster long-term growth and stability.

5. Summary of Token Flow

1. Initial Allocation:

• 80% for liquidity on decentralized exchanges.

• 20% distributed to early adopters over the first month.

2. Revenue-Driven Buybacks:

• Revenue generated from selling AI data is used to buy back tokens.

• These tokens are redistributed to active participants as ongoing rewards.

3. Sustainability:

• The model aligns token value with network success, ensuring a fair and robust token economy.