Allocation Mechanism

By using simulations, we have been able to ascertain the egalitarian nature of GoraNetwork's rewards model where the bulk of node runners, which we expect to stake 2000 - 3000 GORA tokens, will be handsomely rewarded for their work. At the same time, due to proof of stake and Algorand's sortition process, we expect those who stake more to receive more rewards compared to those who stake less.

It is important for GoraNetwork that tokens are in the hands of its' participants. A direct to node sale will occur within the coming months which will help node runners to be prepared for the Gora's launch. A programmed rewards schedule exclusively for node runners/validators is designed to compensate node runners/validators for their contributions and an additional incentive mechanism will aid in increasing the number of early adopters as quickly as possible. Placing these resources in their hands helps in decentralising GoraNetwork and improving its' security and attractiveness to consumers.

Majority of the GORA tokens are dedicated towards ecosystem development and incentives which demonstrates the allocation priorities for GoraNetwork. GoraNetwork also makes use of lock up periods and cliffs to give node runners/validators a chance to gain an advantage before investors are able to unlock completely. The allocation mechanism in the medium term )(e.g. 3-5 years) will results in majority of tokens (>80%) in the hands of community, node runners and customers.

In the future, a DAO will be formed that will take decisions on reallocation of token supply and parameter changes of incentive mechanisms. At this moment, only a small portion of the ecosystem rewards have been earmarked for distribution, leaving over 38% of tokens can be distributed as the community sees fit once GoraNetwork gets going.

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