February 2024 / Version 1.1
This Light Paper provides a high-level overview of the purpose and design of the IXO token. IXO is the Layer-1 utility token of the ixo blockchain network. We propose updates to the IXO token economy that takes into consideration broader economic changes and technological developments since the original design. We introduce a novel crypto-economic mechanism to reward the objective function of the ixo network, which incentivises users to produce positive Real-World Impacts, at an Internet scale.
Since 2014 ixo has been developing pioneering Web3 standards and protocols for identifying, verifying, tokenising and financing Real-World Impacts (RWIs), which are observable changes over time in the state of societal, environmental, economic, and climate systems.
In 2021 we introduced the idea of The Internet of Impacts (White Paper), which is envisioned to become a multi-chain digital infrastructure through which Real-World Impacts are intelligently coordinated, delivered, financed, measured, reported, verified, and exchanged.
This Internet interconnects blockchain networks, hardware sensors, databases, file stores, software applications, and AI agents, into a virtual hyper-structure for computation and data relevant to Sustainable Development, Ecological Regeneration, and Climate Impacts. It includes an ecosystem of Web3 and Web 2.0 infrastructures, modular services, aggregation platforms, applications, and user interfaces. This new Internet has unique properties for holding a stateful graph of verifiable information, programming state-changes, digitally identifying and authenticating participating entities, and providing webs of trust between human and software (including AI) Agents. The Web3 infrastructure for processing messages, maintaining digital registries, and storing data proofs, is decentralised, trusted and secure.
Internet protocols are the mechanisms through which data gets communicated and stored. The ixo protocols extend core Internet standards for Semantic Data, Digital Identifiers, Verifiable Credentials, and related mechanisms. The ixo Layer-1 blockchain network and software application stack have been purpose-designed to provide a gateway and primary set of utilities for the Internet of Impacts. It has been built to implement the ixo Protocols, which produce time-stamped graphs of verifiable information, with cryptographic proofs about the state of the real world and the entities that are changing this state. Entities are represented as Digital Twins.
The data in this stateful graph is updated and stored across a network of computer servers referred to as Validator Nodes. These nodes compute the cryptographically signed messages that are sent to the network. For performing this work, node operators (Validators) receive transaction fees and commission on the staking rewards originated from the IXO token inflation that is autonomously generated and distributed by the network protocol.
The Internet of Impacts Platform Ecosystem
The IXO token has been the default currency for settling these transaction fees. Interchain protocols now make it possible for transactions on other networks to be paid in any accepted digital currency, including IXO.
Users of this distributed platform include Impact investors, project implementers, verification service providers, human agents, AI agents, and technology developers.
Users pay for the services they receive directly from the network, as well as from other connected networks. Payments and incentives for using and securing the ixo network are made with the IXO layer-1 utility token.
The IXO cryptographic token provides access to digital services and participation in the Internet of Impacts ecosystem through the ixo blockchain network. This token is native to the layer-1 ixo blockchain network, though it may be transferred and used on any other blockchain network. Usage of the services provided by and through the ixo network is paid in IXO tokens.
The genesis supply of 100 million IXO tokens was created when the main network – The Impacts Hub – was brought into existence by independent validators in 2021. This amount of genesis supply was a typical benchmark for Cosmos blockchains at the time. By the end of 2023 the total supply stood at 148,129,051 as the result of token supply inflation.
Of the initial supply, 40 million IXO tokens were allocated to a Community Pool, available for future distributions governed by the network. This was in-principle earmarked for the creation of an Internet of Impacts ecosystem DAO, once the software mechanisms for DAOs had matured. The Internet of Impacts DAO (”Impacts DAO”), a Liechtenstein Venture Cooperative, has since been established and currently holds approximately 33 million IXO from the genesis supply and accumulated inflation rewards. The Impacts DAO has been formed for the purpose of investing in the ongoing cooperative research and development, and market deployment, of Internet of Impacts technologies and market solutions.
The Community Pool supply held by the ixo blockchain Impacts Hub network has therefore become redundant.
The token economy of any network must dynamically adapt its rate of growth to changes in market demand. Through network governance the token supply and inflation can be increased or decreased.