# NerveNetwork Token (NVT) Economics

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### 1. Overview

* Token Name: NerveNetwork Token
* Ticker: NVT
* Maximum Supply: 2.1 billion NVT
* Initial Supply: 1.1 billion NVT
* Consensus Mining Allocation: 1.0 billion NVT (released gradually over \~100 years)

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### 2. Initial Distribution (1.1 Billion NVT)

<table data-header-hidden><thead><tr><th width="206.5390625"></th><th width="121.09765625"></th><th width="179.03125"></th><th></th></tr></thead><tbody><tr><td>Allocation Type</td><td>Amount</td><td>% of Total Supply</td><td>Purpose</td></tr><tr><td>Early Development</td><td>200M</td><td>9.5%</td><td>Community growth, virtual bank recruitment, and airdrop (10M to NULS holders)</td></tr><tr><td>Cornerstone Investment</td><td>300M</td><td>14.3%</td><td>Strategic partners and institutions to grow the ecosystem</td></tr><tr><td>Foundation Reserve</td><td>600M</td><td>28.6%</td><td>Team development, R&#x26;D (Phases I &#x26; II), and long-term funding</td></tr><tr><td>— Locked Portion</td><td>200M</td><td>—</td><td>Permanently staked in virtual banks for network security</td></tr><tr><td>— Unlock Schedule</td><td>400M</td><td>—</td><td>Unlocks monthly after 1-year cliff, over 20 months</td></tr></tbody></table>

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### 3. Consensus-Based Emission (1.0 Billion NVT)

#### Staking Mechanism

* Main Assets on NerveNetwork — including cross-chain assets like BTC-NVT and BTC-ETHN — can participate in staking.
* Both flexible and time-locked staking are supported.
* Rewards are distributed based on staking amount and weighted contribution.

#### Node Participation

* To become a validator or virtual bank node, users must lock tokens.
* Locked assets are inaccessible during staking and become available upon un-staking.

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### 4. Weight-Based Reward System

A dynamic weight system determines staking and consensus rewards.

#### Weight Multipliers:

<table data-header-hidden><thead><tr><th>Condition</th><th width="343.2890625">Multiplier</th></tr></thead><tbody><tr><td>NVT  Staking</td><td>×2</td></tr><tr><td>Consensus Node </td><td>×3</td></tr><tr><td>Virtual Bank Node</td><td>×4</td></tr><tr><td>NVT Time-Locked Staking:</td><td></td></tr><tr><td>– 3 months</td><td>2.4×</td></tr><tr><td>– 6 months</td><td>3×</td></tr><tr><td>– 1 year</td><td>4×</td></tr><tr><td>– 2 years</td><td>5×</td></tr><tr><td>– 3 years</td><td>6×</td></tr><tr><td>– 5 years</td><td>8×</td></tr><tr><td>– 10 years</td><td>10×</td></tr><tr><td>LP Staking (Can change by proposol)：</td><td></td></tr><tr><td>ETHN-BTC_LP</td><td>10x</td></tr><tr><td>USDTN-BTC_LP</td><td>10x</td></tr><tr><td>USDCN-BTC_LP</td><td>10x</td></tr><tr><td>NVT-BTC_LP</td><td>20x</td></tr></tbody></table>

Multipliers are stackable, allowing higher rewards for long-term and high-contribution participants.

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### 5. Reward Emission Schedule

| Parameter              | Value                    |
| ---------------------- | ------------------------ |
| Initial daily reward   | 86,400 NVT               |
| Block reward reduction | Every 100 days           |
| Reduction coefficient  | 0.822% per cycle         |
| Total mining duration  | Approx. 100 years        |
| Emission end           | When 2.1B cap is reached |

Reward Formula:

* Based on account’s staking weight relative to total weight
* Node credit also affects block reward allocation
* Calculation formula of the Staking reward (daily reward)<br>

  <figure><img src="https://3720347922-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7UXQBDbbedSgUo8jGTA%2Fuploads%2Fex430xiLUhY69lqgkpfb%2Fimage.png?alt=media&#x26;token=6661af22-1284-47b3-9127-42bbffe500c9" alt="" width="563"><figcaption></figcaption></figure>
* Calculation formula of node reward (reward for producing a block)<br>

  <figure><img src="https://3720347922-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7UXQBDbbedSgUo8jGTA%2Fuploads%2FSJf27Bpf5QBGHz4gsELa%2Fimage.png?alt=media&#x26;token=7581a516-e38b-4e78-95e5-9e837710d093" alt="" width="563"><figcaption></figcaption></figure>

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### 6. Virtual Bank Nodes

* Top 15 nodes by collateral become virtual bank nodes
* Receive 2× block reward than NVT staking
* Secure cross-chain assets using multi-signature custody

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### 7. NVT Token Utility

<table data-header-hidden><thead><tr><th></th><th width="441.29296875"></th></tr></thead><tbody><tr><td>Use Case</td><td>Description</td></tr><tr><td>1. Cross-chain transaction fees</td><td>Pay for asset bridging and transfers</td></tr><tr><td>2. Governance voting</td><td>Participate in protocol upgrades and proposals</td></tr><tr><td>3. On-chain transaction fees</td><td>Gas fees for operations within NerveNetwork</td></tr><tr><td>4. Node creation collateral</td><td>Required deposit to become a validator</td></tr><tr><td>5. Staking for consensus rewards</td><td>Earn rewards by contributing to network security</td></tr><tr><td>6. AMM Swap transaction fee burn</td><td>Swap fees are repurchas and burned</td></tr><tr><td>7. DEX pair creation fee burn</td><td>Prevent spam pairs via burn-based deterrent</td></tr><tr><td>8. Future ecosystem use cases</td><td>AI agents, DAOs, NFTs, Web3 applications</td></tr></tbody></table>