Mining is not currently available on the Blockstack network. As a result, we expect the supply of 1.32 billion Stacks tokens created in the genesis block to decline over time due to burning.
We hope to introduce mining in or around 2020, which may increase the token supply through the creation of tokens as mining rewards. We anticipate that the number of tokens added will be governed by a principle that we call adaptive mint and burn, which provides that a minimum number of new Stacks tokens will be created as the mining reward for each block added to the blockchain, and a number of additional tokens may also be included in the mining reward to replace tokens that have been recently burned and thereby removed from the token supply, which additional tokens we refer to as replacement tokens. The number of tokens recently burned would be calculated using a measurement algorithm that remains to be determined.
Unless the number of tokens burned exceeds the maximum number of additional tokens that can be created, or the measurement algorithm fails to accurately measure the rate at which tokens are being burned, adaptive mint and burn will result in a net number of tokens being added to the token supply each year equal to the minimum number of tokens created — which would be equal to approximately 26,298,000 tokens each year for the first five years, 21,038,400 tokens each year over the next five years, and then 15,778,800 tokens each year after that. If the token-burning activity on the network consistently exceeds the cap on token creation, however, more tokens may be burned than are replaced by the replacement tokens, and this could result in less net tokens being added to the network over time than anticipated.
In addition, the blockchain would further add to the token supply by creating 12 million new Stacks tokens a year for App Mining, and 25 million tokens and 15 million tokens the first and second year after the introduction of mining, respectively, for user incentive programs. We are considering whether these caps on the number of additional tokens should be removed at some time in the future.
For more details, please see Description of the Stacks Tokens—Creation of new Stacks Tokens in our offering circular.