How To Understand The GEODNET Token System

A com­mon ques­tion with any DePIN project is: Where do all the tokens go? In GEODNET, 35% of all tokens emit­ted go to those of us deploy­ing GEODNET base sta­tions and pro­vid­ing cov­er­age. But what about the rest of the tokens? Where do they go? How many are there? How do you KNOW?

Let’s start with what GEODNET pro­vides on their site, which is a break­down of where the tokens are allo­cat­ed. The total sup­ply is 1 bil­lion tokens; this is what was mint­ed to start the project. There will be no more tokens mint­ed; that’s it. Now, just because they’re mint­ed does­n’t mean those tokens are imme­di­ate­ly emit­ted all at once. It just means they’re cre­at­ed and ready to be used. The mint­ed tokens are sep­a­rat­ed into seg­ments to reward dif­fer­ent par­tic­i­pants in the project.

As you can see, the biggest sec­tion goes to those actu­al­ly build­ing the net­work (that’s the big yel­low sec­tion marked “Min­ing 35%”.)

Where do the rest of ’em go, and how do you know? 

This is one of the most pow­er­ful things about a blockchain project. You can see, on a pub­lic and immutable ledger, where all the tokens are and have been. To do that, you need two things: 

• Access to a blockchain explor­er (I’ll be using PolygonScan) 
• Know­ing which wal­lets are linked to which segments.

Let’s start by going to Poly­gon­Scan and look­ing for the GEODNET project. Here’s what I saw in late August of 2022, when this was written.

You’ll notice some impor­tant details, like the total sup­ply, the con­tract address, the num­ber of wal­lets (2,558) and then the tab we’re going to hit, which is the Hold­ers tab. Once we’re here, we look for 6 impor­tant addresses:

• Min­ing — 0xfa5fed5cc2b6dd8f370651d17242c52ed711b14f
• Team — 0xca3e874bc4e830796d822f529c29df30302324b2
• Remain­ing for Investors — 0x486559899e96981dfe55c4e6ebf5101a76bfadfa
• Ecosys­tem — 0x3a6906e4239f9860c81035c54198df58d892653b
• Ven­dor — 0x82146cf0f350c241757660fd803c73313b06d75c
• Pub­lic Sale — 0xcecccb3ee2c208fb58a5a02499e97d4bf041ff6f

Two addi­tion­al impor­tant address­es are:

Pend­ing Burn / Rev­enue Buy Back — 0xc327C048d75398Da9DB5254679bb84a4a9e42010

Already Burned — 0x000000000000000000000000000000000000dead

When you search for the Pend­ing Burn wal­let (last 4 — 2010) you’ll need to click on the “ERC-20 Token Txns” to see what’s going on with it. Here’s an example:

As you can see, it’s receiv­ing GEODNET tokens IN and imme­di­ate­ly send­ing OUT USDT. This is the “buy back” aspect. 

The way “buy back and burn” works is that the GEODNET Foun­da­tion takes 80% of the rev­enue it cur­rent­ly earns from pay­ing cus­tomers, buys GEODNET tokens with that rev­enue, and then burns those tokens to a “dead” wal­let, in this case, it’s in the name: 0x000000000000000000000000000000000000dead 

If you want to see how many tokens have been burned, look at the burn wal­let, which can be found here. An exam­ple from August 22, 2023, is below. Note how many many tokens have been burned so far (2,290,000).

There is no way to retrieve tokens from that wal­let; they are gone! It does­n’t mean you can’t track them, just that they’re per­ma­nent­ly out of circulation.

You can explore the var­i­ous address­es as much as you want. If you’d like to learn about stak­ing GEODs to earn 10% or deploy­ing a min­er to earn up to 14X tokens, check out this arti­cle (and now you’ll know how to track it all!)

So there you have it: All the impor­tant address­es on GEODNET and a way to under­stand where all the tokens are, and where they’ve gone. 

Rock ‘n roll!

****Full Dis­clo­sure: Author Nik Hawks is own­er of the con­sult­ing com­pa­ny Gold Hawks & Asso­ciates LLC, which main­tains GEODNET as a client. Noth­ing in this arti­cle should be tak­en as finan­cial advice.*****