3 minutes to understand the design concept of CEP economic system

For the blockchain, the key to its long-term health is the economic model. Only a good economic model can increase the enthusiasm of miners to participate and inspire the community.

So, what is the economic model of CEP?

>>>>Token governance model

As we mentioned before, the governance model of CEP is “completely decentralized and fluid democracy.” Therefore, when the CEP development team is designing the economic model, it has given its token governance rights.

The simple understanding is that in the liquidity mining of CEP, the members who own the token can have the governance rights on it. Of course, the real performance may be more voting rights, and the voting weight is determined by the ownership of the governance token.

In fact, this model has appeared as early as 2016, which is the DAO model. In this model, as long as the governance committee, that is, the representative elected by the community, makes decisions, such as changes in the allocation and transfer of funds, the smart treaties in the agreement can be implemented, avoiding centralized control, and achieving fairness and Transparency and freedom.

CEP also adopts this model to give all stakeholders in the network the right to speak, so as to ensure the full participation of the community and the healthy development of the blockchain.

>>>> Token structure design

Similar to other liquid mining, CEP’s economic model advocates community interests first. Therefore, in the structure of the token, the CEP development team has set that “90% of the token is provided to the community in order to provide liquidity mining for CEP.” Throughout the history of blockchain development, there are only a handful of tokens that can provide such a large proportion of tokens to the community.

In fact, for the community, the best incentive method is naturally financial rewards. The maximization of token distribution can increase the stickiness of the community and stimulate the initiative of community participation.

At the same time, because CEP wants to be “completely decentralized,” it must ensure maximum community participation. And because participation in governance must have its token, it must have a high community distribution ratio.

Therefore, 90% of the community distribution is more in line with the governance needs of CEP.

>>>>Fair start

This is the foundation established by the first two.

Based on the original design of liquid mining, CEP adopts a fair start-up method-by adjusting the interest relationship between the founders, early investors and the community, a better profit distribution method is realized, which will be fundamentally improved The rules of the game in the blockchain industry.

More specifically, when designing the economic model, CEP has already started a fair start, including but not limited to:

· Establish an early ownership distribution strategy

· Establish an incentive mechanism

· Arrange smart contract (sometimes economical) review

These are all about the construction of economic models. CEP is launched fairly, communicates with investors at the beginning of design and construction, and adopts the common suggestions of most investors. The economic model built on this is more in line with the expectations of the community, and it can also play an incentive role to maintain the development of the blockchain.