Frequently Asked Questions The DAPP Token
- What is the DAPP token?
- What is the supply schedule of DAPP token?
- How are DAPP tokens distributed?
- Why do you need to use DAPP Token and not just EOS?
- Why is the sale cycle 18 hours?
- What is an airHODL?
- Is this an EOS fork?
The DAPP token is a multi-purpose utility token designed to power an ecosystem of utilities, resources, & services specifically serving the needs of dApp developers building user-centric dApps.
DAPP will have an intial supply of 1 billion tokens. The DAPP Token Smart Contract generates new DAPP Tokens on an ongoing basis, at an annual inflation rate of 1-5%.
50% of the DAPP tokens will be distributed in a year-long token sale, while 10% will be Air-Hodl’d to EOS holders. The team will receive 20% of the DAPP tokens, of which 6.5% is unlocked and the rest continuously vested (on a block-by-block basis) over a period of 2 years. Our partners and advisors will receive 10% of the DAPP tokens, with the remaining 10% designated towards our grant and bounty programs.
While we considered this approach at the beginning of our building journey, we decided against it for a number of reasons:
- We look forward to growing the network exponentially and will require ever more hardware to provide quick handling of large amounts of data accessible through a high-availability API. It is fair to assume that this kind of service would require significant resources to operate and market, thus it would not be optimal for a BP to take on this as a “side-job” (using a “free market” model that allows adapting price to cost).
- The BPs have a special role as trusted entities in the EOS ecosystem. DSPs are more similar to a cloud service in this respect, where they are less reputational and more technical. Anyone, including BPs, corporate entities, and private individuals, can become a DSP.
- Adding the DAPP Network mechanism as an additional utility of the EOS token would not only require a complete consensus between all BPs, but adoption by all API nodes as well. Lack of complete consensus to adopt this model as an integral part of the EOS protocol would result in a hard fork. (Unlike a system contract update, this change would require everyone’s approval, not only 15 out of 21).
- Since the DAPP Network’s mechanism does not require the active 21 BPs’ consensus, it doesn’t require every BP to cache ALL the data. Sharding the data across different entities enables true horizontal scaling. By separating the functions and reward mechanisms of BPs and DSPs, The DAPP Network creates an incentive structure that makes it possible for vRAM to scale successfully.
- We foresee many potential utilities for vRAM. One of those is getting vRAM to serve as a shared memory solution between EOS side-chains when using IBC (Inter-Blockchain Communication). This can be extended to chains with a different native token than EOS, allowing DAPP token to be a token for utilizing cross-chain resources.
- We believe The DAPP Network should be a separate, complementary ecosystem (economy) to EOS. While the EOS Mainnet is where consensus is established, the DAPP Network is a secondary trustless layer. DAPP token, as the access token to the DSPs, will potentially power massive scaling of dApps for the first time.
An 18 hour cycle causes the start and end time to be constantly changing, giving people in all time zones an equal opportunity to participate.
An Air-HODL is an airdrop with a vesting period. EOS token holders on the snapshot block receive DAPP tokens on a pro-rata basis every block, with the complete withdrawal of funds possible only after 2 years. Should they choose to sell their DAPP tokens, these holders forfeit the right to any future airdrop, increasing the share of DAPP tokens for the remaining holders.
The DAPP Network is not a fork nor a side-chain but a trustless service layer (with an EOSIO compatible interface to the mainnet), provided by DSPs (DAPP Service providers). This layer potentially allows better utilization of the existing resources (the RAM and CPU resources provided to you as an EOS token holder). It does not require a change in the base protocol (hard fork) nor a change in the system contract. DSPs don’t have to be active BPs nor trusted/elected entities and can price their own services.