Skip to main content

INCP Tokenomics

This page details the INCP token's utility, supply, distribution, and economic model for the Inception blockchain.

Token Overview​

AttributeValue
Token NameInception
TickerINCP
TypeNative blockchain token
Max Supply50,000,000,000 INCP (50 billion)
Decimals18
InflationFixed cap, no inflation beyond max supply

Token Utility​

INCP serves multiple critical functions on Inception:

1. Gas Fees​

All transactions require INCP to pay for gas:

  • Transaction execution: Simple transfers, contract interactions
  • Contract deployment: Deploy new smart contracts
  • State changes: Any operation modifying blockchain state

Fee Model: EIP-1559 with base fee (burned) + priority tip (to validators)

2. Validator Staking​

Validators secure the network by staking INCP:

  • Stake requirement: 32 INCP per validator
  • Security deposit: Slashed if validator misbehaves
  • Economic security: Total staked INCP secures the network
  • Rewards: Validators earn INCP for honest participation

3. Governance​

INCP holders participate in protocol governance:

  • Voting power: 1 INCP = 1 vote
  • Proposals: Create proposals with sufficient INCP
  • Delegation: Delegate voting power to others
  • Protocol control: Govern upgrades, parameters, treasury

4. Network Security​

Total staked INCP determines network security:

  • Economic cost of attack: Attacker needs 33%+ of total stake
  • Slashing penalties: Malicious validators lose stake
  • Finality threshold: 66% of active validators needed for finality

Supply and Allocation​

Maximum supply: 50,000,000,000 INCP (fixed cap; minted at genesis). Base-fee is burned (EIP-1559), creating deflationary pressure as usage grows.

Allocation (100% of 50,000,000,000 INCP)​

  • NFT Staking Hubs — 55% (27.5B INCP)
  • Community Treasury — 25% (12.5B INCP)
  • Core Team — 8% (4.0B INCP)
  • Developer Incentives — 6% (3.0B INCP)
  • Staking Validators — 4% (2.0B INCP)
  • Advisors — 2% (1.0B INCP)

Rewards split: Base issuance distributes 75% to attesters and 25% to proposers; tips go to the proposer; base fee is burned.

Reference: Whitepaper v1.2 (see Transparency & Addresses page for the signed PDF).

Deflationary Mechanism

Every transaction burns INCP (base fee), permanently removing it from circulation. This creates deflationary pressure, reducing supply over time.

Information Only

Information only. Not financial advice. Cryptocurrency prices are volatile. Only risk what you can afford to lose. Governance parameters and allocations may evolve via community votes; always verify on the Transparency & Addresses page and Status.

Rewards Distribution​

Validators earn rewards from multiple sources:

Block Rewards​

New INCP issued to validators (until max supply reached):

  • Issuance schedule: Decreasing over time
  • Distribution: Proportional to stake and performance
  • Frequency: Every epoch (~6.4 minutes)

Transaction Fees​

Validators earn from transaction fees:

  • Priority tips: User-specified tips go to block proposer
  • Base fees: Burned, not given to validators
  • MEV opportunities: Maximal Extractable Value from transaction ordering

Staking Yield​

Estimated annual yields (approximate):

Network StateEstimated APY
Early (Low Participation)8-12%
Moderate Participation5-8%
High Participation3-5%
Yield Variability

APY varies based on:

  • Total staked INCP (more stake = lower individual yield)
  • Network transaction volume (more txs = more tips)
  • Validator performance (uptime, missed attestations)
  • MEV opportunities

Reward Calculation Example​

Validator with 32 INCP stake:

Base rewards: ~3-8% APY depending on participation
Transaction tips: Variable, typically 0.5-2% APY
MEV (if captured): Variable, typically 0-1% APY

Total estimated APY: 3.5-11%

Token Burning​

EIP-1559 burns the base fee from every transaction:

Burning Mechanism:

  1. User submits transaction with maxFeePerGas and maxPriorityFeePerGas
  2. Base fee algorithmically determined by network
  3. Base fee portion burned (removed from supply)
  4. Priority tip goes to validator
  5. Any excess from maxFeePerGas refunded to user

Burn Rate:

Depends on network usage:

  • Low usage: ~10,000 INCP burned per day
  • Moderate usage: ~50,000 INCP burned per day
  • High usage: ~200,000+ INCP burned per day

Long-term Effect:

  • Reduces circulating supply over time
  • Creates deflationary pressure
  • Benefits long-term holders
  • Aligns incentives (more usage = more scarcity)

Economic Security​

Network security is proportional to total staked value:

Security Calculation:

Security = Total Staked INCP × INCP Price

Example:

  • 1 billion INCP staked
  • INCP price: $0.01
  • Economic security: $10 million

An attacker would need to acquire 33%+ of staked INCP to attack the network, costing at minimum $3.3 million plus the value lost from slashing.

Slashing Penalties:

  • Validators who attack lose their entire stake
  • Slashing reduces attacker's assets
  • Makes attacks economically irrational

Treasury Management​

The protocol treasury is governed by INCP holders:

Treasury Size: 12,500,000,000 INCP (25% of supply)

Governance Control:

  • All spending requires governance vote
  • Treasury funds ecosystem growth
  • Transparent on-chain tracking
  • Regular reports published

Use Cases:

  • Developer grants and bounties
  • Security audits
  • Marketing and partnerships
  • Infrastructure costs
  • Ecosystem investments
  • Research and development

Approval Process:

  1. Proposal submitted for treasury spending
  2. Community discussion (1-2 weeks)
  3. Formal governance vote (7 days)
  4. If approved: Timelock (7 days)
  5. Execution and distribution

Token Distribution Timeline​

Circulating Supply​

At Launch:

  • Public Sale: 1,500,000,000 INCP (20% of 7.5B)
  • Ecosystem Fund: 5,000,000,000 INCP (unlocked but governed)
  • Validator Pool: Available for staking
  • Initial Circulating: ~20-30% of max supply

Over Time:

  • Vesting releases increase circulation
  • Burning decreases total supply
  • Net effect: Circulating supply trends vary

Track Supply:

Validator Economics​

Running a Validator​

Costs:

  • Initial stake: 32 INCP
  • Server costs: $50-200/month
  • Bandwidth: Included in server or separate
  • Electricity: Minimal for PoS

Revenues:

  • Block rewards: Variable, decreasing over time
  • Transaction tips: Variable, depends on usage
  • MEV: Variable, optional

Profitability:

Break-even and profit depend on:

  • INCP price
  • Network participation rate
  • Operating costs
  • Validator uptime and performance

Example (Approximate):

32 INCP stake at $0.01 = $320 initial investment
5% APY = 1.6 INCP per year = $16 per year
Operating costs = $100/month = $1,200 per year

Net: -$1,184 per year at $0.01 INCP price

For profitability, INCP price must appreciate or yields must increase.

Market Dynamics​

Supply and Demand​

Supply Pressures:

  • Vesting releases add supply
  • Validator rewards add supply (until cap)
  • Public sale distributions

Demand Pressures:

  • Network usage requires INCP for gas
  • Validator staking locks INCP
  • Speculation and trading
  • DeFi and ecosystem usage

Deflationary Factors:

  • Base fee burning
  • Staking lockup
  • Treasury holdings
  • Lost keys

Price Discovery​

INCP price determined by:

  • Exchange listings and liquidity
  • Network adoption and usage
  • Validator participation rate
  • Overall crypto market conditions
  • Speculative demand

Token Safety​

For Holders​

  • Custody: Use hardware wallets for large amounts
  • Seed phrases: Backup and secure your recovery phrase
  • Scam awareness: Beware of phishing and fake tokens
  • Verify addresses: Always verify contract addresses

For Validators​

  • Key security: Protect validator keys
  • Slashing risk: Understand slashing conditions
  • Uptime: Maintain high availability
  • Updates: Keep clients updated

Disclaimers​

Investment Risk
  • Not financial advice: This is informational documentation
  • Volatile: Cryptocurrency prices are highly volatile
  • Research: Do your own research before investing
  • Risk: Only invest what you can afford to lose
  • No guarantees: APY estimates are not guaranteed
  • Regulatory: Token regulations vary by jurisdiction

Resources​

Token Metrics Summary​

token:
  name: Inception
  ticker: INCP
  decimals: 18
  max_supply: 50_000_000_000

distribution:
  validators: 30%
  treasury: 25%
  early_contributors: 20%
  public_sale: 15%
  ecosystem: 10%

utility:
  - Gas fees (EIP-1559)
  - Validator staking (32 INCP)
  - Governance voting
  - Network security

economics:
  fee_model: EIP-1559 with burning
  inflation: None (capped supply)
  deflation: Base fee burning
  staking_yield: 3-12% APY (variable)

Next Steps​

FAQ​

Will there be more INCP created?​

No, the supply is capped at 50 billion INCP. No additional tokens will be minted beyond this cap.

What happens to burned INCP?​

Burned INCP is permanently removed from circulation. It cannot be recovered or reused.

How do I track circulating supply?​

Use the block explorer or price page to see current circulating supply and total burned amounts.

Can I unstake my INCP immediately?​

No, validators must submit a voluntary exit and wait in the exit queue. Full withdrawal takes days to weeks.

What determines validator rewards?​

Total staked INCP, network usage, transaction fees, your uptime, and performance all affect rewards.

Are rewards guaranteed?​

No, rewards vary based on network conditions and validator performance. Estimates are not guarantees.

Updates​

This tokenomics documentation reflects the current design. Any changes will be:

  • Announced on the Status Page
  • Discussed in governance forums
  • Subject to governance approval
  • Updated in documentation

Last updated: October 12, 2025 — Launch docs alignment; updated to Whitepaper v1.2