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Tokenomics Overview

Introduction

The HELIOS token is the native asset of the Helios blockchain, designed to power the ecosystem through staking, governance, and security incentives. It plays a fundamental role in maintaining the Interchain Proof of Stake and Reputation (I-PoSR) mechanism, ensuring decentralization, validator participation, and economic sustainability.

Token Utility

The HELIOS token is used in multiple ways:

  • Staking & Validation: Delegators stake HELIOS to support validators and secure the network while earning staking rewards.
  • Governance: HELIOS holders participate in on-chain governance, voting on key protocol upgrades, parameter adjustments, and treasury allocations.
  • Transaction Fees: Used to pay gas fees within the Helios network.
  • Interchain Operations: Required for interacting with Hyperion modules, bridging assets, and participating in cross-chain activities.
  • Security Mechanisms: Used as collateral by Hyperion-enabled validators to enhance consensus integrity and reduce malicious behavior.

Supply & Emission Model

The HELIOS token follows a controlled inflation model, starting with:

  • Initial Supply: 500 million HELIOS
  • Maximum Supply Cap: 5 billion HELIOS (subject to governance adjustments)
  • Inflation Rate: Dynamic, governance-controlled (ranges from 7% to 20%)
  • Epoch-Based Minting: New tokens are minted per block and distributed proportionally to stakers and validators.

Inflation Phases

The inflation rate is designed to adjust dynamically based on total supply:

  • Early Phase (0 - 2B HELIOS) → 15% default inflation
  • Growth Phase (2B - 4B HELIOS) → 12% inflation
  • Maturity Phase (4B - 5B HELIOS) → 5% inflation
  • Post-Cap Phase (>5B HELIOS) → Governance-controlled (1-3%)

Staking & Rewards Distribution

Rewards are distributed based on the stake-weighted contribution of validators and delegators, following:

  • Dynamic APY Scaling: Validators maintaining HELIOS collateral receive boosted APY.
  • Epoch-Based Payouts: Rewards are distributed per epoch to prevent reward farming exploits.
  • Whale Limit Mechanism: Single entities holding >5% of the network stake see reduced APY through an exponential scaling factor.

Conclusion

HELIOS tokenomics are designed for sustainability, decentralization, and security. With a governance-driven supply model and staking incentives, the token ensures long-term alignment between validators, delegators, and ecosystem participants.