YNG’s tokenomics explained step by step
Today, the YNG token has been officially released in the market. Do you already know everything about this token? Here’s its tokenomics!
The Tokenomics is the business card of every cryptocurrency, it indicates its characteristics and all its strengths. If you want to know the mission, vision and economic mould of a crypto project, its tokenomics is the right document to consult. The tokenomics of YNG Token is always available in the whitepaper and in the Academy. In this article you will find all the main information on the YNG tokenomics explained point by point!
Category: What type of token is YNG?
YNG is Young Platform’s utility token. By definition a utility token is designed to access specific services in a crypto ecosystem, the YNG token serves to enhance the user experience of Young Platform’s products. All of Young Platform’s products revolve in fact around YNG, in each of which the token has a different function. For example, on Young Platform Step, users receive YNG as a reward for crypto-related quizzes and challenges. This was the first function of YNG, the token has been distributed for free since January 2019. YNG is a token based on Ethereum’s ERC-20 standard, the most widely used to develop utility tokens. YNG is a token, not a coin, precisely because it does not live on its own blockchain but relies on a third-party chain.
Total supply: how will the YNG token be distributed?
One of the key points to consider in the tokenomics of a cryptocurrency is its total supply. From this figure, one can tell whether the number of tokens, or coins, in question is set to increase indefinitely or not. In the case of YNG, the smart contract provides for a limited supply of 100 million tokens. This means that the number of tokens cannot be exceeded under any circumstances. The Young Platform team decided to allocate these 100 million YNG for different purposes:
1. Rewards in the Young Platform product ecosystem (63.6%)
63.6 percent of the total supply of YNG goes to Young Platform users in the form of rewards. How can YNG be obtained as rewards? E.g. on the Young Platform Step app to encourage in-depth knowledge of the crypto sector, or on Young Platform as an additional reward for activities related to the Earning Wallet feature and all future initiatives.
As of the 30th of May 2022, 7.3 million YNG have already been distributed for this purpose. The remaining 56,3 million will be distributed from now onwards.
2. Sale (17.6%)
A small percentage of YNG’s total supply was reserved for sales. This is because the choice was made to favour internal incentives within the platform itself and the user experience. With the Community Sale in May 2022, 6.9 million YNG were sold/purchased while 10.75 million are in the Treasury, divided between market makers, Venture Capital and listing procedures.
3. Young Platform Team (10%)
A portion of the YNG tokens will be distributed to Young Platform employees starting in 2023. Young Platform is growing as a company thanks to people, so the YNG token will be a reward for the work of individuals who make a difference and support the company with their skills.
4. Advisors (5%) and Stakeholders (3.8%)
Young Platform also receives input and support from people outside the company. An incentive mechanism for advisors and stakeholders has been devised for this purpose.
The YNG Liquidity Management System
To regulate the liquidity of the YNG-EUR market pair on the Young Platform exchange, an algorithm will be used based on the same mathematical formulas that are normally used to manage the liquidity pools of decentralised exchanges based on automated market makers. In the specific case of YNG, the same formula will be used that allows the liquidity pool of Uniswap to function: K = x * y, where ‘x’ represents YNG tokens and ‘y’ the Euros in the pool. The purpose of this formula is to calculate the right proportion between the number of tokens bought or sold and their price; and also to keep the product between the amount of tokens in the pool and the amount of Euros constant over time. Based on this formula, the Young Platform pool will initially contain 1,000,000 EUR and 4,166,666 YNG. Contrary to DeFi protocols, there will be no major variation in the liquidity contained in the Young Platform pool for the short-medium term, however any changes in the total liquidity will be promptly communicated. This mechanism will in fact only serve to ensure adequate liquidity on our exchange through a sufficient number of limit orders on our order book, while the price of YNG will be determined by supply and demand.
Supporting the market cap with buybacks
In order to reduce the circulating supply and increase the market capitalisation, especially in the first phase after the listing of YNG, Young Platform reserves the right to use the buyback mechanism. This means that in order to support the performance of the YNG token, the company could buy back a certain amount of tokens, which would then either not be put back on the market or be burnt. Buybacks will always be announced well in advance through the official channels of Young Platform, as well as how the purchased tokens will be used.
Circulating supply as of 30 May 2022
Circulating supply represents the number of tokens that are available for purchase and sale at any given time. As of 30 May 2022, there were 16.73 million YNG tokens in circulation. Specifically, 7.1% of the circulating supply of YNG were in Step’s wallets, 63.2% in Young Platform’s wallets, 23.9% in the Liquidity Pool needed to support the Order Book, 1.2% was for external advisors, and 4.6% was distributed to stakeholders in 2019 through the crowdfunding campaign.
All use cases of the YNG token
We said that YNG is a utility token, but what exactly is its utility? Before the listing, YNG was always distributed via airdrop as a reward for quizzes and challenges on Young Platform Step. In addition, YNG holders were entitled to receive discounts on exchange service fees. What changed after the listing? The airdrop on Step will remain unchanged, but the benefits of owning the YNG token will multiply! By locking in part of your YNG, you will be able to access the Young Platform Clubs. By joining one of the 4 Clubs, you secure exclusive treatment and all the best promotions on Young Platform products.