What is tokenomics?

Tokenomics is a term to describe the underlying approach to a project's token, how it will function, what it will be used for and how this will create rewards around it for holders.

Before we get into the underlying mechanics of how the token behind the project works, it might be worth explaining exactly what a cryptocurrency token actually is.

Cryptocurrency is a programmable currency unit where all the data around its usage is recorded on a digital ledger or blockchain and how it functions and can be used is programmed into it, these 'rules' are called smart contracts, code that enacts these functions based on the conditions or rules described being complete. The contract part is the rules, and the 'smart' being that these rules then automatically execute the action once all the rules or conditions are fulfilled.

So then what is a token? A token is a privately issued digital value exchange medium.

The CLNK token will give holders access to fee rebates for creating on-chain carbon credits, at reduced rates and to take part in the governance of the project itself. Initial access to the Token will be via two events, a Community airdrops (details to be announced later) and then a Fair Launch Auction (FLA). More on each of these events will be outlined at the end of this section and the dates and timings for these will be announced on our Discord nearer the time.

For those familiar with some of the major tokens out there, CLNK's tokenomics is based in part on elements of the mechanics behind Ohm, Klima, Binance and Matic.

The bonding and staking principles of Ohm or Klima, the fee rebates of Binance and the validator rewards of Matic. The CLNK token also has a Buyer of Last Resort (BOLR) mechanism built in to ensure that the token remains liquid and that holders can always buy and sell CLNK tokens with confidence.

The CLNK token will be used to access the Carbon Credit Protocol services, and to pay for the creation of carbon credits, with the associated fees discounted for holders of the token.

The token will also be used to access the Carbon Credit Protocol's governance system, allowing holders to participate in the decision-making process around the project.

The CLNK token will also be used to reward validators and stakers within the Carbon Credit Protocol network, and as part of the Buyer of Last Resort (BOLR) mechanism, in order to ensure that there is always a buyer for the token.

The Community Airdrop will be available to those who have participated in the project’s pre-launch activities and the Fair Launch Auction will be a way of accessing the token at a fair and equitable rate.