Skycoin's distribution model is hard-coded into the blockchain code
Fudders often claim that Skycoin's undistributed supply could be dumped at any time by the developers. This is incorrect. In fact, the Skycoin distribution model is hard-coded into the blockchain code.
Under the Skycoin distribution model, 25 million coins (25% of maximum supply) are available for initial distribution, with the remaining 75 million coins being time-locked. After the initial 25 million coins have been fully distributed, an additional 5 million are unlocked each year and become available for distribution.
The code containing the distribution parameters can be found here. This code defines a maximum supply of 100 million coins, 100 distribution addresses to contain one million coins each, 25 of these addresses to be initially unlocked, and 5 further addresses to be unlocked every 31536000 seconds (one year).
The code containing the distribution process can be found here. This code references the above parameters and performs the actions of moving the total supply into the distribution addresses, unlocking the initial 25 addresses, and enabling the unlocking of 5 addresses every year once the coins from the initial 25 addresses have been distributed (i.e. once the coins have been moved out of those distribution addresses).
The code containing the distribution verification can be found here. This code is applied when a Skycoin wallet attempts to make a transaction. The code verifies that the coins involved in the transaction are not part of a locked distribution address. If a wallet attempts to move locked coins then the error message "Transaction has locked address inputs" is returned and the transaction fails.
Together, these three pieces of code ensure that no more than 5% of Skycoin's maximum supply can be distributed or sold each year, after the initial 25% of coins have been distributed.
A detailed analysis of Skycoin's past and future distribution can be found in this article by Christian Ott.
Under the Skycoin distribution model, 25 million coins (25% of maximum supply) are available for initial distribution, with the remaining 75 million coins being time-locked. After the initial 25 million coins have been fully distributed, an additional 5 million are unlocked each year and become available for distribution.
The code containing the distribution parameters can be found here. This code defines a maximum supply of 100 million coins, 100 distribution addresses to contain one million coins each, 25 of these addresses to be initially unlocked, and 5 further addresses to be unlocked every 31536000 seconds (one year).
The code containing the distribution process can be found here. This code references the above parameters and performs the actions of moving the total supply into the distribution addresses, unlocking the initial 25 addresses, and enabling the unlocking of 5 addresses every year once the coins from the initial 25 addresses have been distributed (i.e. once the coins have been moved out of those distribution addresses).
The code containing the distribution verification can be found here. This code is applied when a Skycoin wallet attempts to make a transaction. The code verifies that the coins involved in the transaction are not part of a locked distribution address. If a wallet attempts to move locked coins then the error message "Transaction has locked address inputs" is returned and the transaction fails.
Together, these three pieces of code ensure that no more than 5% of Skycoin's maximum supply can be distributed or sold each year, after the initial 25% of coins have been distributed.
A detailed analysis of Skycoin's past and future distribution can be found in this article by Christian Ott.
