NEP-63: NEW Token Release Adjustment and NewForce System Retirement
| NEP | 63 |
|---|---|
| Title | NEW Token Release Adjustment and NewForce System Retirement |
| Author(s) | Newton DAO, AB |
| Category | Tokenomics |
| Type | Process |
| Status | Accepted |
| Created | 2025-01-25 |
| Updated | 2025-01-29 |
Simple Summary #
NEW Token Release Adjustment and NewForce System Retirement.
Abstract #
Newton Project, a blockchain project with a long history, has issued its native token, NEW. Currently, approximately 56.6 billion NEW tokens remain locked and not in circulation. With the launch of the Newton Finance sidechain, the original network has been renamed to Newton Core. To adapt to the increasing demands for blockchain node performance and reliability, Newton DAO has decided to revise the NEW token release rules starting February 2025. This proposal outlines the transition to a new incentive structure, the accelerated release of locked NEW tokens, and the retirement of the NewForce system.
Motivation #
The development of Newton Finance and Newton Core requires high-performance and reliable machine nodes as the foundation for stable growth. Redirecting all NEW token incentives to machine nodes will ensure a robust and scalable infrastructure for the ecosystem.
Additionally, promoting the circulation of the 56.6 billion locked NEW tokens is critical to creating more liquidity and enhancing the overall value of the Newton ecosystem. By releasing all locked tokens evenly over the next 12 months, the ecosystem will transition to a fully liquid token economy, improving efficiency, liquidity, and value creation.
Specification #
Incentive Redistribution:
- Starting February 1, 2025, all NEW token incentives will be distributed exclusively to machine nodes operating on Newton Finance and Newton Core.
- The 56.6 billion locked NEW tokens will be released evenly over the next 12 months, ensuring that all NEW tokens are in circulation by February 2026.
Retirement of NewForce System:
- The NewForce system will stop providing rewards on February 1, 2025.
- The NewForce system will cease operations on August 1, 2025.
- Users must unlock and withdraw their NEW tokens from the NewForce system before August 1, 2025, as locked assets will become inaccessible after this date.
Future Community Incentives:
- Newton DAO will explore new mechanisms for community rewards.
- A potential solution is the establishment of an on-chain staking and lending system, allowing NEW holders to earn higher returns while enhancing the ecosystem’s value.
Rationale #
Redirecting incentives to machine nodes ensures the ecosystem can meet increasing performance and reliability demands. Releasing all remaining locked NEW tokens over the next 12 months will enhance liquidity and unlock the full potential of the token economy. Retiring the NewForce system and exploring new reward mechanisms aligns with Newton DAO’s commitment to both community participation and ecosystem growth.
Implementation #
- The revised token distribution rules will take effect on February 1, 2025.
- The NewForce system will stop offering rewards on February 1, 2025, and will terminate operations on August 1, 2025.
- Discussions on new community reward mechanisms will be prioritized by Newton DAO.
Copyright #
Copyright and related rights waived via CC0.