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.*****