Caiz Tokenomics: A Deflationary Mechanism for Real-World Use-Cases

3 min readMar 6


“Understanding Caiz Circulating-Supply”

The Caiz Ecosystem is a use-case driven ecosystem that is designed to be deflationary by nature.

Tokenomics refers to the economics of cryptocurrency tokens and how they function within a decentralized network. It encompasses various factors such as token supply, distribution, velocity, liquidity, and governance, which play a significant role in the success of a cryptocurrency. The use of smart-contracts and blockchain technology is also a critical component of tokenomics, as they allow for the creation and management of various token types such as payment tokens, security tokens, utility tokens, and governance tokens. Overall, tokenomics is essential in incentivizing participation and promoting desirable behavior on a decentralized network.

Caiz Ecosystem: Elastic Token Release Schedule

Caiz tokenomics feature a Deflationary Mechanism that rewards early participants in the ecosystem with greater access to average available Caizcoins. When more users join the ecosystem, the overall circulating-supply of the coins increases in direct proportion to the number of verified wallets. A verified Wallet is a fully KYCed wallet, which is linked to an individual. In this capacity, individuals can only have one personal account. The Caiz ecosystem is designed to prevent an ecosystem-wide oversupply of the coins. For every new verified wallet that is created, only a limited number of Caizcoins (7.75 coins in the first slot) are released into the ecosystem.

The limited number of Caizcoins is always less than the current average number available to the users in the ecosystem. The overall number of circulating-supply rises with the number of users, but the average number available to every user in the ecosystem falls slightly with every new user. This maintains the deflationary mechanism by decreasing the average number of Caizcoins available to users each time a new user is accepted into the ecosystem.

The Caiz ecosystem is designed to offer practical applications and benefits that are driven by real-world use-cases. One of its key features is its user-growth mechanism. According to the Caiz tokenomics, new tokens are introduced into the ecosystem in direct correlation with user-growth.

Caizcoin Tokenomics: Deflationary Mechanism

Caiz tokenomics is designed to maintain a Deflationary Mechanism, a critical feature of the ecosystem. As mentioned earlier, early adopters will have greater access to available average Caizcoins, as this mechanism will decrease the average coin availability over time.

The Caiz ecosystem has a total supply of 999,999,999 coins, with 40 million currently in circulation. This ensures that there is always a sufficient number of coins for transactions, without creating a surplus that can lead to a decline in their value. To ensure the availability of the coins when needed, the ecosystem has reserved 20 million coins (of the 40 million Caizcoin currently in circulation) in a “Liquidity Wallet.” These coins are locked in the Ecosystem’s Liquidity-Wallet, and these are not intended for distribution in the ecosystem, but only to provide liquidity in the ecosystem which supports a more stable buying- and selling-price, also when lots of people simultaneously want to buy or sell their Caizcoin. Further, the deflationary mechanism provides protection against the destabilizing effects of inflation, which can erode the purchasing power of a currency and cause economic instability.

For example, if the number of verified wallets decreases, Caizcoins will be transferred back to the Minted Wallet, and the transfer of tokens to the Distribution Wallet will be halted until the surplus of Caizcoins is absorbed by the creation of new verified wallets.


Tokenomics plays a critical role in the success of a cryptocurrency by incentivizing participation and promoting desirable behavior on a decentralized network. The Caiz ecosystem’s tokenomics features a deflationary mechanism that maintains the stability and value of its currency. This mechanism ensures that the average number of available coins decreases slightly with each new user, incentivizing early adopters and maintaining stability for the currency’s value.

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