KEY TAKEAWAYS
- Cere blockchain plans to transition to a non-inflationary economy by Q1 2025, replacing token inflation with real-world demand.
- The shift involves burning tokens to reduce supply and tokenizing cloud computing services to generate real yield.
- Cere aims to create over 1 million data wallets, enhancing data privacy and sovereignty with its Decentralized Data Cloud.
- The ‘Diamond Hands Bonus’ rewards validators and nominators, aligning incentives with real-world usage and demand.
Cere blockchain, an L1 blockchain known for its inflationary economy model, is set to transition to a non-inflationary economy by the end of the first quarter of 2025. This shift aims to replace token inflation with real-world demand, marking a significant milestone for the blockchain and the broader Web3 ecosystem.
The initial inflationary model was designed to reward validators and nominators, a common practice among Proof of Stake (PoS) chains to bridge the demand gap until sufficient transaction volume and fees are generated. However, Cere is now preparing to phase out this model as it begins to tokenize cloud computing on clusters like Dragon 1 through CERE tokens. This approach involves securing service level agreements (SLAs) and data security while automating payments and validations.
Transition to Real-World Demand
By the end of Q1 2025, Cere plans to become a completely non-inflationary economy. This will involve burning tokens allocated from the treasury to reduce the overall token supply to 10 billion. Concurrently, inflation will be gradually reduced until it is entirely eliminated once the target supply is reached.
The blockchain will showcase how everyday data operations from Dragon 1, and other data clusters, are being tokenized via the CERE token. This process aims to displace inflation with real-world demand and yields. Cere highlights that communities and creators can use decentralized data infrastructure to stream and monetize video content, bringing economic value to data nodes and CERE validators and nominators.
Innovations and Future Plans
Cere is driving towards creating over 1 million data wallets with real-world users. These wallets will be securely stored, fully encrypted, and segmented individually, demonstrating data privacy and sovereignty while providing the agility needed for future computing. Additionally, Cere is building real-time secure Agentic systems with partners on top of its Decentralized Data Cloud (DDC), offering a sovereign and automated data stack where only permitted AI agents can operate transparently and accountably.
To support this transition, Cere has announced the “Diamond Hands Bonus,” a time-limited reward for existing validators and nominators who have supported the ecosystem. This bonus will augment real yield generated by data clusters during the initial months of 2025, ensuring that those who have shown steadfast support are rewarded during this phase.
Eligibility criteria for the bonus include nominators remaining staked with a minimum of 200,000 tokens and voting on at least three community proposals. Validators must remain self-staked with a minimum of 400,000 tokens, avoid being slashed more than three times, and also vote on at least three community proposals.
More details on the Diamond Hands Bonus and its impact on token utility will be shared in the coming weeks. By aligning rewards with real usage, Cere aims to ensure that the $CERE token reflects real-world demand from competitive decentralized data clusters, benefiting all participants in the ecosystem.
The full announcement can be read here.
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