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Implementation of the NIBI Tokenomics ​

Nibiru's Inflation Module implements the emissions for the Nibiru (NIBI) token. These emissions go to stakers, the Nibiru Foundation treasury, and the community reserve.

Introduction ​

The Nibiru blockchain's main, native digital asset is called NIBI. As of Nibiru v1.3.0, NIBI tokens are only ever minted by the Inflation Module, which is a drop-in replacement for the Mint Module from the Cosmos-SDK. We use a custom implementation in order to properly implement the Nibiru token economics and release schedule.

Total Supply ​

NIBI tokens are not automatically burnt by this module, and the fully diluted supply is capped at 1.5 billion NIBI if there are no "buyback and burn" events.

Module Parameters ​

TIP

The NibiruChain/tokenomics GitHub repo shows how the coefficients for the following module parameters are computed.

ParameterDescription
inflation_enabledThe parameter that enables inflation and halts increasing the skipped_epochs.
polynomial_factorsFactors of a polynomial in decreasing order. These numbers are used to calculate polynomial inflation.
inflation_distributionDistribution of percentages describing where to send newly minted tokens.
epochs_per_periodThe number of epochs that must pass before a new period is created.
periods_per_yearThe number of periods that occur in a year.
max_periodThe maximum number of periods that have inflation being paid off. After this period, inflation will be disabled.
has_inflation_startedIndicates if inflation has started. It's set to false at the start, and stays at true when we toggle inflation on. It's used to track the number of skipped epochs.

The token emissions are derived from a target rate of increase in each epoch. To represent these values precisely onchain in discrete chunks, we use a polynomial since a small-order polynomial can be used to approximate almost any smooth, monotonic curve.

You can query these parameters on mainnet using the Nibiru CLI.

bash
# Mainnet CLI Config
nibid config node https://rpc.nibiru.fi:443
nibid config chain-id cataclysm-1
nibid config broadcast-mode sync 
nibid config
bash
nibid query inflation params
js
{
  "inflation_enabled": true,
  "polynomial_factors": [
    "-0.000147085524000000",
    "0.074291982762000000",
    "-18.867415611180000000",
    "3128.641926954698000000",
    "-334834.740631598223000000",
    "17827464.906540066004000000"
  ],
  "inflation_distribution": {
    "staking_rewards": "0.281250000000000000",
    "community_pool": "0.354825000000000000",
    "strategic_reserves": "0.363925000000000000"
  },
  "epochs_per_period": "30",
  "periods_per_year": "12",
  "max_period": "96",
  "has_inflation_started": true
}

Community Reserve ​

The term "community reserve" in the Nibiru ecosystem refers to the "Community Pool" module account, which is designated to hold funds for use in community-driven projects. These funds are managed through a governance process, allowing stakeholders to propose and vote on their allocation.

The reserve receives a portion of newly minted tokens, intended to support initiatives that may include development grants, educational efforts, or other activities that contribute to the network. This setup provides a mechanism for the community to decide on resource allocation to projects aligned with its interests and goals.