Introducing tokenomics

Rowan Energy introduces a tokenomics model that presents enormous value propositions for those willing to invest into the potential of the network. Our model incorporates a sophisticated deflationary mechanism which is a stark difference from the highly saturated, inflationary emissions and token unlocks model that tends to harm investors and devalue their share in the network. A deflationary model means that our circulating supply is continually decreasing and so a given holder’s share in the network will constantly be increasing. Under a model like this the market cap of the project can remain the same even while the price is increasing. In this blog we will dive into how this process works and what it means for you.

Distribution

The Rowan Coin distribution has evolved considerably throughout 2024 due to the deflationary mechanics already implemented. The original circulating supply was a total of 195,000,000 coins. This is the important value to keep an eye on as it is constantly decreasing due to the deflationary mechanism. The total supply is 545,000,000 coins however this does not mean there are emissions or unlocks as I will explain. 180,000,000 coins form something we call the “Mining Buffer Pool”. This pool of coins acts as the buffer of coins that can be sold to fund incentives required for the Rowan Rewards vertical. Rowan Rewards is the incentive scheme that our customers join once they have a SmartMiner installed and entitles them to a cash-back of £0.10 per kWh of renewable energy generated. The mining pool can be utilised to fund these rewards however it is not needed unless absolutely necessary. 150,000,000 is assigned as reserve coins to be available for institutional investment which are contracted and incentivised in a way that encourages them to only sell via OTC should those coins wish to change hands. 20,000,000 coins are assigned to the team however these are also without question obligated to only change hands via OTC and with the forecasted growth, revenue and adoption – these coins will likely remain untouched.

Buybacks

The Rowan Energy deflation mechanic can be seen very much as one that is directly correlated to the network growth and ultimately the amount of revenue generated. We have a very sophisticated and structured financial model and expansion plan. We are currently in the first stage of this model which is the preliminary expansion phase. We are blitz scaling our network by installing thousands of SmartMiners that introduce the unique selling point of opening up an additional revenue stream for customers. For every SmartMiner sold $150 worth of RWN is bought off the market at market price as a network onboarding fee for all new customers. This is our first revenue generating avenue and will be followed by many more, all amounting to coins coming off the market. NFT Carbon Offset sales will see coins bought back, Decentralised Energy Trade will see coins bought back and all other revenue verticals will see a similar buyback mechanic. 

Deflation

So now we know that all revenue verticals directly lead to RWN coin demand and that translates into coin buybacks, but where do these coins end up? As we mentioned in the ‘Distribution’ section, we have two important pools in our model: the circulating supply and the mining buffer pool. When coins are bought back they are taken out of the circulating supply, therefore reducing the total circulating supply. These coins are then transferred to the mining buffer pool. You may have realised from earlier on that the mining buffer pool is used to fund rewards if needed in order to satisfy the £0.10 per kWh for each Rowan Rewards customer. So we have the first pool, the circulating supply, experiencing buybacks that move coins to the mining buffer pool and on the other hand we have the second pool, the mining buffer, experiencing reward redemptions that move coins to the circulating supply. In order to achieve deflation you have to develop a tokenomics model and expansionary plan that ensures the absolute value of the buybacks is greater than the redemptions over a given period. This is exactly what we do. Our financial model ensures the tokenomics exhibits deflationary properties as the net flow of coins into the circulating supply is always negative. The outflow is greater than the inflow. For example: If buybacks amounted to 1500 RWN but we had reward redemptions totalling 1000 RWN, that is still a net deflation of 500 RWN coins.

Conclusion

The key thing to understand is that Rowan Energy is a very dynamic network. We will release many varieties of products and services over the coming months and years, spanning many sectors with huge opportunities for revenue creation. As the network grows, as our product offerings grow and ultimately as our revenue grows – this all leads to RWN coin demand and deflation. We will never stop expanding, never stop growing and never stop pushing forward. The RWN coin is the transactional medium for everything that happens on our chain and every time we generate revenue, every time a transaction is conducted – RWN is in demand.