TokenomicsThe Digital Health Point (DHP) is the networks native currency
The value of the capped utility and payment token is based on the size of the user base, the number of quality partners, and how often the tokens change hands (velocity). A growing network leads to increased DHP demand and value.
Node Decentralized Network Currency
DHP is a utility and payment token compliant with the Swiss Financial Market Supervisory Authority (FINMA) regulations for crypto-currencies. Transaction fees on the dHealth Network are paid in DHP.
- Total Initial Supply: 1’000’000’000 DHP
- Maximum Supply: 2’000’000’000 DHP
- Block Time: 30 sec or 2’880 blocks per days
- Initial Blockreward: 400 DHP
- 1 epoch = 1’250’000 blocks or 434 days
- Inflation Duration = 10 epochs
- Inflation Rate: Halving at the end of each epoch
- Harvesters earn rewards just by holding a minimum token balance of 2’000 DHP
DHP Supply and Inflation
DHP has a fixed maximum supply of 2 billion tokens. At public chain release, the supply consists of 1 billion DHP and another billion will be created as Blockrewards over the period of 10 epochs.
The Innovation Fund consists of 400 million DHP that will be gradually awarded to projects over the whole inflation period. A total of 10% DHP will be distributed through tokens sales. To increase the initial user base and as an appreciation of the NEM Foundation’s support 10% of the DHP supply will be airdropped onto the NEM community. The founders’ and team reward amounts to 8% (160 million). As a reserve, 1% of DHP (20 million) will remain with the Foundation, e.g for running Voting Nodes. Roughly 1% of the total token supply was given to early contributors. These DHP tokens constitute 30% of the total DHP supply as the circulating supply at the start of the dHealth Network.
Another 1 billion DHP will be created as staking rewards over time. The staking rewards are comparable to mining rewards. dHealth Network rewards will be released to each block creator but based on a POS+ (Proof of Stake+) system.
The dHealth Network is a self-sustaining economic ecosystem involving DHP token holders, node operators, and organizations that are applying use-cases. In this way, it’s similar to many decentralized blockchains, but there are important differences that make it easier for anyone to earn rewards. An initial DHP token distribution is achieved by allocating DHP via Airdrop to the NEM community, DHP sale, and early supporters as well as team members. The DHP holders can sell and buy DHP via decentralized and centralized exchanges. Supernodes and their operators secure and enable the dHealth Network and its use cases in which individuals and organizations holding DHP are participating. Supernodes receive Block Rewards for creating new blocks and transaction fees and distribute it to the DHP holders that staked on the Supernode. Supernode operators can deduct a fee from the rewards and fees. The Innovation Fund has an initial supply of 400 million DHP and is also fed by fees from the Block Reward. A maximum of 40 million DHP is allocated per epoch from to the Innovation Fund to support Use Cases that generate transactions on the dHealth Network.
dHealth Network’s blocks are confirmed every 30 seconds, therefore rewards are frequent. Block rewards consist of inflation rewards and transaction fees. The chances of earning a block reward are based mainly on the operator’s DHP stake, as well as other factors like network activity. Both node operators and anyone else with a DHP wallet can earn block rewards. The higher an account’s DHP balance, the higher the chance of it earning a block reward. Even those who do not run a node can earn block rewards by delegating their stake to a node.
*Example of a Blockreward distribution
dHealth Network’s inflation is going to last for 12.5 million blocks (total of 4,340 days). Halving takes place every 1.25 million blocks (1 epoch = 434 days). Read our Whitepaper for the exact schedule.
DHP owners who don’t operate nodes can also earn block rewards by delegating their stake to a node. Holders who delegate their stake retain full ownership of their DHP and never expose their private keys. When delegated harvesters earn a block reward, the node operator who processed it earns 10% and the delegated harvester earns 90%. This is the default setting that can be modified for each node by the respective node operator. In this way, a node operator can increase their earned rewards, and all holders can participate in rewards whether or not they run a node.
Node operators can set their own minimum fees for which they wish to process transactions. The lower the fees accepted, the more transactions they will be able to process. Generous node operators may even choose to process transactions for free if they wish. This creates competition among node operators.
Total Node Income
To summarize, node operators will earn income in DHP from block rewards (inflation + transaction fees) based on their own stakes and a 10% share of delegated stake block rewards.
The value of the DHP will be determined by the market, i.e. demand and supply.