The NOM Token
Last updated
Last updated
Onomy Protocol's parent chain (The Onomy Hub) is a PoS blockchain is governed by NOM.
The initial supply of NOM was 100,000,000 tokens and increases over time through block rewards. The genesis event of the Onomy Blockchain and initial distribution of NOM was conducted by chain validators on November 29th, 2022. The vesting schedule for Team, Backers, and Partners carried a 12 month cliff that has since lapsed, followed by monthly linear vesting for the remaining tokens that culminates by December 2025. This structure has led to the vast majority of tokens being unlocked as of April 2024. The current circulating (unlocked) supply may be viewed here.
The target NOM inflation is between 7-20%, being at the lower end of the range when most NOM is staked and the higher end of the range when less NOM is staked. At time of writing, the vast majority of NOM is currently staked. Inflation is offset by various sinks in the Onomy Ecosystem - one in particular being the Buy & Burn from exchange fees as detailed in this documentation.
NOM is additionally used as the gas token to send transactions on the network.
View live stats by visiting Coingecko or CoinMarketCap. You may also view network stats and deeper details on the Mintscan Explorer.
When NOM holders delegate their NOM to a validator, they are staking. Staking provides rewards in return for delegating to validators who support the security and operations of a blockchain network.
Through the Interchain Security model, consumer appchains compensate the Onomy Hub’s validators by contributing to the network’s operational support. This arrangement facilitates the provisioning of security services, ensuring the robustness and success of the entire network. Specifically, consumer appchains set a redistribution factor on staking rewards to pay the Onomy Network parent chain (NOM stakers) for securing the chain in the form of rewards of the consumer chain's native token - such as ONEX tokens.
Onomy is governed by the Onomy DAO, providing NOM holders with the opportunity to guide the decision-making process through NOM-weighed votes. A DAO (Decentralized Autonomous Organization) is an organization represented by rules encoded as a transparent computer program, controlled by the organization members, and not influenced by a central governing body. As the rules are embedded into the code, no managers are needed, thus removing any bureaucracy or hierarchy hurdles. Onomy's community pool / DAO Treasury is an on-chain module that no central team or entity controls. It is entirely managed via governance through NOM-weighted votes, enabling NOM token holders to participate meaningfully in not only the direction of Onomy - but its use of funds as well. These funds have historically been used to approve grant requests for various community-led efforts ranging from marketing initiatives to developer-led integrations of various tooling.
AMM earnings are used in two ways. Firstly, to pay the respective portion of AMM earnings to liquidity providers. Second, to programmatically purchase NOM and then burn the purchased NOM from the supply. This is done with no management by any central party, nor the DAO. This functionality is incentivized by providing a programmatic reward to any user who executes the buy and burn function - thus decentralizing this action and creating a competitive market amongst users to execute the function to receive the reward.
