We are seeing a paradigm shift in the way the world perceives the economy. The advent of digital currencies and assets powered by blockchain is driving this change. With blockchain projects trying to promote the use of digital money and its underlying technology, there is a completely new form of the economy being built — the token economy.


Every blockchain platform or application supports a native digital token or currency that acts as a means of value exchange within its digital ecosystem. Projects working on these need to carefully plan their token economy before the launch of the project. 


The study and process of deciding the type of token, its use cases within the ecosystem, the token allocation, and distribution are together termed as token economics, more commonly referred to as “tokenomics” within the crypto community.


It is crucial to devise an all-inclusive token economy and business model for a blockchain ecosystem in order for the system to thrive. Not only must it be user-centric but it should also bring revenue for the company. The token economy decides how the users receive rewards or what fee they pay to transfer the native tokens to other users. It also outlines the various ways in which the company earns profits from the usage of the token. 


Without a well-defined token economy, it’s next to impossible for a blockchain ecosystem to survive. To that end, Alacrity’s blockchain ecosystem is supported by a sustainable token economy that promotes the adoption of digital currencies as well as the expansion of the project.

Alacrity token economy

To ensure the decentralisation of the Alacrity platform and its economy, the total ALA tokens to ever be issued will be equally divided between the network members and the development team. To understand this better, let’s dive into the token distribution and issuance rate.

Token Issuance Rate

The Alacrity Network has an inflationary economy model. The network will issue 40 million ALA, or 5% of the system’s multiplying factor 800 million, in the first year of launch. The following two years, an additional supply of 4% and 3% will be added to the network respectively. From then on, 2% of the ALA tokens will be released in the ecosystem each year unless the network users vote otherwise.


The issued ALA tokens will be distributed as follows:


  • Block Producers

30% of all ALA tokens on Alacrity will be rewarded to block producers on the network who help approve transactions within the ecosystem. The reward received by each block producer would depend on how much resources they contribute to Alacrity.

  • DApp Developer

Developers who create decentralised applications for users on Alacrity will receive rewards from a dedicated 10% supply of ALA. The more traction a developer’s DApp gains within network users, the more reward they will receive from the network.

  • Witnesses

Witnesses are standby block producers who keep a record of the transactions on Alacrity blockchain and have the resources to produce new blocks in case any primary block producer fails to do so. Witnesses will receive 7.5% of all ALA tokens.

  • Voters

Remaining 2.5% of the rewards allocated for the community will be given to users who stake ALA tokens to vote within the network. All users who have staked ALA tokens for at least nine days are eligible to vote on Alacrity. The rewards are delivered to users every 30 days depending on the number of votes each user casts.


  • Platform development and marketing

The next 50% of the ALA tokens are allocated for the development and marketing of the Alacrity tokens. 12.5% of these ALA tokens will be shared between the founding team members while 5% will be used for marketing purposes. The company will store the remaining 32.5% of ALA tokens to fund future community developments.

Parting thoughts

The distribution of ALA token has been done keeping in mind the best interests of the Alacrity community. It is aimed at creating a sharing economy, where each participant in the network is able to earn for what they contribute to the ecosystem.