Mina Tokenomics

Please note for a more detailed breakdown of Mina’s tokenomics visit the official Mina Protocol website here. The MINA token is the native currency of the Mina blockchain and is required to participate in block production and purchasing of SNARK proofs (via the Snarketplace). 

Unlike BTC, MINA is an inflationary token with no maximum supply cap. Token holders can stake or delegate their tokens to receive their share of the inflation. It is not necessary to lock or bond tokens in order to do this. In total there will be 1 billion MINA tokens distributed at launch. These will unlock fully over 8 years. During the first year of Mainnet, accounts with lock ups will receive block rewards equal to an annual inflation of 12%. This rate will decrease over time to 7% and then it is thought the figure will be voted on by MINA holders. 

During the first 15 months of Mainnet, unlocked accounts will benefit from ‘Supercharged’ rewards. These offer a higher % of rewards to incentivise holders to remain loyal to the Mina ecosystem. 

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Mina Token Circulation Schedule


Genesis Block: 
The first block of the Mina blockchain. Includes all the MINA tokens that are a part of the Initial Supply. Tokens are deposited to the Mina addresses of their intended recipients as of this block. 

MINA token: 
The native currency of the Mina blockchain. MINA tokens are required to stake and produce blocks on the Mina blockchain. They’re also the exclusive currency of the Snarketplace, which is used by block producers and SNARK producers to buy and sell SNARK proofs. Each MINA token is divisible up to 9 decimal places. 

Mina Foundation (MF): 
Mina Foundation is a non-profit organisation that is domiciled in the Cayman Islands. It is the steward of Mina, and owns and manages all of its tangible and intangible assets. More on the Mina Foundation and its board can be found here.

O(1) Labs: 
O(1) Labs is a San Francisco based startup that incubated Mina. O(1) Labs’ mission is to use cryptography and cryptocurrency to build computing systems that put people back in control of their digital lives. It continues to contribute to the project via code contributions and operational support. More on O(1) Labs can be found here.

Mina 8-year Circulating Supply

Staking and Delegating: 
Mina is a Proof-of-Stake based blockchain. As such, the right to become a block producer on the network is earned by staking MINA tokens. Holders of MINA tokens can also choose to delegate their tokens to another block producer, for them to stake. As opposed to some other Proof-of-Stake based blockchains, staking in MINA doesn’t have slashing or bonding periods. More on Mina’s staking dynamics can be found here. Those interested can also read more about tokenomics simulations for various attack scenarios here.

Time-locked accounts, Lock-ups and Unlocking: 
Vast majority of tokens in the Initial Supply are subject to protocol enforced lock-ups. Tokens held by the Mina Foundation and O(1) Labs Endowments are subject to self-enforced lockups, and both entities are committed to adhere to the unlock schedules in their respective sections below. Locked up tokens cannot be transferred out of their accounts, but can be staked or delegated. Accounts that enforce lock-up to tokens are called Time-locked accounts. By default, unlocking of lock-ups happens on a per-slot basis, but can be configured to occur periodically or via a cliff mechanism.

As tokens unlock, they can be transferred to another account, or can be kept in the original account. If the owner of an account tries to transfer more tokens than unlocked, the transaction will fail. More about the unlock logic configurations can be found here.