Phoenix Token Economics Update – Maximum Supply, Hybrid Staking, & CCD

In this release we will provide an overview on much anticipated newest updates on token economics of the Phoenix Ecosystem, and will cover 3 aspects: 1) maximum supply cap 2) overview of Computation Credits (CCD) token economics 3) a brief overview of Phoenix Hybrid Staking.

Maximum Supply

In the past, it has been the case that no maximum cap has been set on the Phoenix (PHB) supply, and due to automated mechanisms such as inflation (ecosystem rewards such as staking), which is currently 9% per annum (decreased early 2023), and utility-based token burn mechanisms, the supply will take it’s course via such mechanisms.

After careful deliberation and discussion, the Phoenix Core Development and Phoenix DAO, for the holistic purpose of optimal token economics combined with ecosystem development has decided to change this once and for all, setting a maximum supply cap – a supply once reached cannot increase (but can only decrease).

The maximum supply cap will be set at 64,000,000 PHB. To see what this means for ecosystem growth, incentives, and economics, continue reading. Following this announcement, the Phoenix Core Development will proceed to update the latest supply information with Coinmarketcap as well as establish a real-time supply API.

What does this roughly mean?

Based on this total maximum supply and other dynamics, including reductions in inflation rate via the Phoenix RISE program, the entry of hybrid staking, and ecosystem growth, we can approximate a range and scenarios in which the maximum supply is reached:

A few important things to note:

  1. If network utility significantly exceeds expectations, it’s completely possible for the maximum supply to never be reached

  2. Once the maximum cap is reached, it does not mean that the supply cannot go down from there. Multiple types of utility-based token burning including via Computation Layer and Native dApp (AlphaNet) usage can reduce token supply.

  3. Hybrid Staking reduces reliance on PHB rewards-based staking, and is expected to be proportional to ecosystem growth as well linked to CCD usage (read on for more details). The growth of Hybrid Staking hence has a direct affect on time for max supply to be reached (will lengthen timeframe). Hence once maximum supply has reached, it will be understood that there will be no staking rewards in the form of PHB (therefore zero inflation).

  4. By the time that maximum supply is reached, we expect most of staking has transferred over to Hybrid Staking, which includes a) functionality-based staking b) ecosystem rights-based or tier-based staking, and staking for mining/production of CCD (see below for more details).

Computation Credits (CCD) – Introduction & Overview

Computation Credits (CCD) should be familiar to most of PHB community members, holders, and partners, as it was launched as the unit of compute resource credit on the Phoenix Computation Layer. CCD is used as the unit of value exchange for various computational resource tasks, including running AI models, multi-party computation jobs, and decentralized AI – in general it is used for AI and computation scaling on our AI Node Network.

Here we will give an introduction of Computation Credits (CCD) – we will shortly release a separate full paper on CCD token economics and how it strengthens the Phoenix ecosystem.

Where is the current CCD supply from?

Currently the only way to obtain CCD is to via a one-way swap from PHB in the Phoenix Computation Layer Control Panel – meaning that PHB is burned to create CCD and is put into circulation. After the newly circulated CCD is deposited into the user’s account, he/she can use it for various tasks on the Phoenix Computation Layer.

CCD can also be created via our fiat gateway (AlchemyPay), which allows global credit card and other fiat payment formats – the resulting mechanism is the same mechanism as the one-way swap, as gateway converts fiat to PHB then to CCD.

Currently there are Around 600+ addresses on Phoenix Mainnet using and holding CCD. Additionally, dApps in the Phoenix ecosystem (such as AlphaNet & NYBL) that utilize Phoenix Computation Layer will also require CCD as the credit for computational resources through the AI Node Network.

Currently CCD cannot be traded on any third party platform or exchange, although that is expected to change (according to Phoenix DAO’s planning) as soon as within a year. CCD is a native ERC-20 standard compatible asset on the Phoenix Mainnet, and there will be easy-to-use bridges to BSC and Ethereum formats soon.

How does CCD fit in to the Phoenix Token Economics?

CCD is completely synergistic to PHB’s token economics, and adds unique value in various different ways, including but not limited to community/holder incentives, AI Node Network growth (both on demand-side and supply side), Hybrid Staking, and overall staking participation. CCD has an especially important role in our Computation Layer’s SkyNet update. (See SkyNet update details here: )

CCD circulating supply creation will be community and ecosystem-driven, and has a “mined” and “produced” concept, meaning that any new circulating supply would require an action, participation or value exchange, which includes:

  • Swapping PHB for CCD, and burning PHB

  • Hybrid Staking [Hybrid Rewards] – Staking PHB at above certain tier, and obtaining both PHB and CCD as rewards

  • Becoming a compute resource node in the AI Node Network – node incentives (other than fees)

Moving forward CCD will adopt the principle of limiting circulating supply, maximizing utility.

CCD Circulation Roadmap

Below we will provide a simple summary of the CCD circulation and token economics roadmap – additional details will follow in the standalone CCD token economics paper:

Hybrid Staking

Hybrid Staking is a unique concept developed by Phoenix DAO that incorporates staking with more dynamic, multifaceted value creation – that is value from not just reaping staking rewards from the default token. Like CCD token economics, there will be more detailed specs to come regarding Phoenix Hybrid Staking, hence here we will briefly summarize the types of Hybrid Staking.

Current Staking

Currently Phoenix’s staking program is highly successful, with over 14,000,000 PHB staked, which is approximately 33% of the circulating supply in Phoenix Staker. This shows a 1 year growth of nearly 100% in the total amount staked, showing a significant increase in long-term PHB holders. It’s expected that Hybrid Staking will increase this trend further.

Hybrid Staking Formats

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