Cypherium Token and Metrics — Consolidated
Cypherium is a highly innovative blockchain platform that offers a unique solution to the challenges faced by existing blockchain networks. The platform leverages a unique hybrid consensus mechanism that combines Proof-of-Work (PoW) and the HotStuff consensus algorithm to achieve high transaction speeds, improved security, network stability and a fully decentralized blockchain, making it ideal for a wide range of use cases, from payments and remittances to decentralized applications and more. In this article, we will explore the role of the Cypherium Tokens and the token valuation and metrics of the Cypherium Blockchain.
The Cypherium Token — CPH
The role of the Cypherium Token, as the native utility token of the Cypherium Network, is critical in the functioning of the network — CPH serves to allocate network resources to participants. Like Ethereum’s Gas mechanism, Cypherium CPH holders receive a proportional amount of Cypherium Power, where each Power represents one share of the total network resources. The primary role of CPH is that it is used as a means of payment for transaction fees when creating and using decentralized applications and services on the network. This ensures that the network remains self-sustaining, as users must hold CPH in order to use the network. Secondly, it is used to reward network participants who contribute computing power to secure the network through PoW mining. This incentivizes users to participate in network security, which helps to maintain network stability. In contrast to Ethereum, like Bitcoin, which only rewards a single miner, Cypherium evenly splits the fees collected from a transaction among the committee members. This departure keeps the fees lower than on the Ethereum VM because the committee working collectively allows the network to process a greater overall number of transactions, reducing the cost of each individual contract.
Thanks to Cypherium’s hybrid consensus mechanism, which incorporates HotStuff-BFT and Proof-of-Work, the Cypherium blockchain processes thousands of CPH transactions per second and the mining prevents unauthorized new CPH from being generated. Furthermore, Cypherium uses Proof-of-Work only for securing the blockchain and selecting the validator nodes. Only miners with a valid Proof-of-Work can join the validator committee. Transactions are verified using the HotStuff algorithm. Therefore, the Cypherium Network does not have an issue with a 51% attack. Cypherium’s consensus is Byzantine fault tolerant. Only if a hacker takes out 66% of our nodes can he truly sabotage our block.
Valuation and Tokenomics
The valuation of CPH can be based on several key factors, including its underlying technology, the size of the potential user base, the adoption of blockchain technology and the competitive landscape of the blockchain industry. The technology behind Cypherium is highly innovative and provides a solution to the scalability and governance challenges faced by existing blockchain networks. The potential user base for Cypherium is large, as more and more individuals and businesses are adopting blockchain technology. The valuation can also be based on the future potential of the network, including its scalability, security, and governance capabilities. The adoption of blockchain technology is growing rapidly and is expected to continue to grow in the coming years, providing a large market for Cypherium to tap into.
The tokenomics of the Cypherium network also play a key role. The network has a fixed supply of CPH, with a portion of tokens being reserved for network incentives, such as rewards for network participants who contribute computing power to secure the network. These mining tokens are apportioned over 10 years at a 5% rate of inflation. This helps to ensure that the network remains self-sustaining and that it is able to attract and retain network participants. Upon mainnet launch on October 31st, 2020, the network was fully functional and usable for transactions and the execution of smart contracts written in both Java and Solidity. CPH tokens are transferable on the mainnet via mobile wallets and clients. In addition, the vesting schedule of the Pre- and Public Sales has ended and the last distribution of tokens was done on April 14th, 2022.
Token metrics
The current token metrics of the Cypherium Token, including the amount that is allocated and the percentage of the maximum supply, are as follows:
This is the current overview of the token metrics and allocation of the tokens. However, 1 Billion CPH tokens will be burnt. Like EIP1559, tokens will be burned from the transaction fees of the miner allocation. The minimum gas will be burned, but extra will be paid to miners. The more transactions that occur, the faster the burn. Once a total burn accumulated 1 Billion tokens, the mechanism will stop.
The overview of the Team-controlled token metrics allocations and a link of the specific wallets to the Cypherium Explorer are as follows:
Conclusion
Cypherium represents a highly promising and innovative blockchain platform. The Cypherium Token is a crucial component of the network, serving several important functions. Its strategic implementation of the PoW protocol and HotStuff consensus algorithm, combined with its strong focus on community and user-centered design, make it a highly attractive utility for those looking to build and operate in the blockchain industry. With its combination of advanced technology, high transaction speeds, low transaction fees, improved security, and decentralized governance, Cypherium is well-positioned to become a leading player in the rapidly growing blockchain industry and to bring the benefits of blockchain technology to a wider audience.
