Tokenomics

$TIG is the native utility token of the TIG Ecosystem. It is used for fostering an environment of open innovation and incentivizing participation.

The $TIG token is an ERC-20 token (18 decimals) deployed on Base @0x0C03Ce270B4826Ec62e7DD007f0B716068639F7B

Token Emission Schedule

The total supply of $TIG is capped at 131,040,000 TIG. The TIG token emission schedule consists of five tranches, each with the same total emission of 26,208,000 TIG, with each tranche lasting twice as long as the previous, measured in rounds:

*Approximates

Post tranche 5, rewards are solely based on tokens generated from TIG Commercial license fees.

The TIG Vault

The number of active Challenges in the protocol directly affects the flow of $TIG tokens. While the network is still growing, only a portion of the emitted tokens are distributed as rewards — the remainder are temporarily held in a vault. This mechanism ensures sustainable distribution during the early stages of the network.

Specifically, we define a scaling function $\Gamma: \mathbb{N} \to [0, 1.02]$ that determines the proportion of emissions to be distributed (with the rest sent to the vault) based on the current number $n$ of active Challenges:

Until the network reaches 100 active Challenges, $\Gamma(n) < 1$, meaning a portion of each emission is stored in the vault. Once 100 Challenges are live, $\Gamma(100) = 1$, aligning with the original emission schedule.— aligning with the original emission schedule. As the network grows beyond that point, $\Gamma$ gradually increases and asymptotically approaches 1.02, enabling the controlled release of the previously stored tokens.

A detailed release schedule for the vault post-scaling will be announced in the near future.

Token Utility

• Incentivising Innovators: Innovators are rewarded with $TIG tokens for submitting and optimising algorithms.

• Incentivising Benchmarkers: Benchmarkers are rewarded with $TIG tokens for benchmarking algorithms.

TIG uses Optimisable Proof of Work to create a synthetic market for algorithms, a dedicated ecosystem and funding model for the development and optimization of algorithms.

In this ecosystem, innovators will develop new algorithms and optimise existing ones; Benchmarkers will identify the most efficient algorithms. Algorithms will be available for licensing, with all license payments flowing into the system to reward contributors.

Token Distribution

The distribution of $TIG block rewards is performance-based and divided among contributors as follows:

Benchmarkers: 50% of block rewards are allocated for Benchmarkers. These rewards are distributed pro-rata based on each Benchmarker’s influence

Innovators (Advances): 20% of block rewards are allocated for algorithmic methods (Advances). These rewards are split evenly across Challenges, before being distributed to Innovators, pro-rata with each of their Advance’s adoption*

Innovators (Code): 10% of block rewards are allocated for implementations of algorithms (Code). These rewards are split evenly across Challenges, before being distributed to Innovators, pro-rata with each of their Code’s adoption*

Challenge Owners (Base): 10% of rewards are allocated as baseline incentive for Challenge Owners. These rewards are split evenly across Challenges to their respective owners*

Challenge Owners (Performance): 10% of rewards are allocated as performance incentive for Challenge Owners. These rewards are distributed to Challenge Owners pro-rata with the number of active Advances that has been recently submitted to their Challenge*

* There may rewards that are “orphaned”: e.g. algorithms not meeting adoption threshold; or no owner for a specific challenge. These “orphaned” rewards are redirected to a “bootstrap address” in the TIG Treasury, specifically ringfenced to incentivise algorithmic breakthroughs.

See Rewards for the exact details concerning token rewards.