Ottó Blockchain Tokenomics AMA Summary
Big thanks to all who attended 👏 — it was a great session covering the recently announced Catalyst tokens, our unique PoS consensus mechanism and the future utility of the PLUG token.
When will pre-mine participants receive their OTTO rewards?
All pre-mine participants will receive their OTTO rewards from staking PLUG at launch of the blockchain, tentative for the end of this month (October).
Update on PLUG tokens
PLUG holders now have early access to mint Catalyst tokens, alongside those who have participated in the pre-mine. Catalyst tokens require OTTO to mint, with mint requirements increasing with every subsequent mint. PLUG holders may convert their PLUG directly to Catalyst at a price ratio of 25 PLUG: 1 OTTO. This is the same yield set for the pre-mine staking rewards.
PLUG tokens converted to Catalyst in this way are burned. Users will retain the opportunity to exchange PLUG to Catalyst post-launch.
The relationship between PLUG & OTTO tokens has not changed, correct?
Correct, PLUG remains to be a utility token for the Ottó ecosystem. Additional utility was just announced, meaning you can choose to mint Catalyst tokens directly using your PLUG tokens if you would prefer to participate in the decentralization and proof of stake in the Ottó Blockchain. In the future, PLUG will play a role of regulating centralised assets on the blockchain.
What is the max theoretical supply of the Catalyst token?
Max theoretical supply of Catalyst is 1 million tokens. However, this will become extremely difficult to achieve as it would take a considerable share of the circulating supply of OTTO tokens to mint the last 10% of the tokens.
How do users go about selling Catalyst tokens?
Catalyst tokens can be sold on the secondary market, AKA. the Ottó DEX. The price will be determined by the free-market balance of demand and supply of the Catalyst and OTTO tokens.
CENNZnet adopted a dual token economy, but PLUGnet and Ottó did not. Why not & what’s the difference in the philosophies?
Ottó is designed to have a very high level of security for each transaction which requires the difficulty of producing a false block to be an unreasonable threshold and effectively risk more to do than it would ever be worth. This token and PoS design allow the network to have exceptionally consistent utility for all users and grow more and more secure and decentralized the higher number of users and their assets are active on the blockchain.
Doing it this way is native and intrinsically tied to the blockchain function and security rather than any dollar figure or external value / leverage or price. This reduces vulnerability and causes less friction against network usage demand.
What is the circulating and max supply of OTTO?
Circulating supply is the same as the total pre-mining rewards, 10 million OTTO. Max supply is 1b tokens, however because of the mechanisms that govern the cycle of circulating supply it is very unlikely that there will be an excess of OTTO tokens in circulation beyond the immediate needs for transactions and liquidity as it would be more sensible to convert these to Catalyst tokens at this point.
Will OTTO holders have access to Catalyst prior to launch?
Yes, both OTTO holders and PLUG holders will have the early access to mint Catalyst tokens.
Will there be institutional partners of Ottó off the bat / How much TVL will be bootstrapping Otto at launch?
We are in the talks with institutions very interested in utilising the Ottó blockchain. No specific figures have yet to been set, and so we cannot estimate TVL at this moment, or yet announce who we are working with.
Will the chain launch with any applications other than its native DEX?
Yes, there are some DeFi tools which we are launching with. Being EVM capable, we hope to introduce additional leading DeFi protocols after asset onboarding begins.
How much OTTO will be used to bootstrap liquidity on MEXC?
None from our side, as we own no OTTO tokens — they are community owned and decentralised. MEXC however was a participant in the pre-mine and may bootstrap liquidity themselves.
Updates on the Immersive partnership
We will be working with their team to assist in the launch of their product and integrating their services into the Ottó blockchain for the benefit of our users.
Updates on the Ottó attestation NFT
The Ottó attestation NFT is ready to launch! We will do it at the time of asset onboarding as it is a critical component of this.