Convex Coin
The Convex Coin (CVM) is the native utility token of the Convex network, enabling secure, scalable, and fully global on-chain state changes.
A small CVM fee applies only to transactions that modify the shared global state - safeguarding the network from spam while ensuring equitable access to shared resources.
Most interactions remain free:
- Unlimited reads: Query the global state at no cost
- Off-chain flexibility: Use Lattice Technology for storage and computation without CVM
CVM has various other uses in the ecosystem:
- Staking: Secure the network by staking CVM on trusted peers through Convergent Proof-of-Stake (CPoS), earning rewards while strengthening network security and resilience
- Value Exchange: CVM can be used as a convenient, self-sovereign digital currency
- Rewards: CVM is used to reward contributors to the network and ecosystem
Tokenomics
The non-profit Convex Foundation ensures that every CVM issued serves the long-term health of the network.
Coins are distributed based on the following proportions:
| Allocation | Purpose |
|---|
| 25% | Grants, bounties, and awards to accelerate core development, tooling, and dapp innovation. |
| 75% | Public sale over time via a fair, transparent release curve - ensuring broad participation and aligned incentives. |
The price of CVM is determined by the release curve which assigns an increasing price to each unit of CVM as it is released, according to the following formula:
price = c * x / (1 - x)
where:
- c is the constant base price of $100
- x is the proportion of CVM already sold from the release curve
The supply of CVM converges towards a theoretical hard cap of 1,000,000,000 CVM (but never reaches it). The rate of this convergence is determined by the economics of the release curve.
For more details see CAD020 Tokenomics and the Convex White Paper document.