💎Tokenomics

Distribution and Initial Supply

As the supply of USDI is entirely determined by user demand through the creation (minting) process, there will be no pre-created or initial distribution of USDI. The total amount of USDI in existence will grow organically as users deposit USDT to create USDI on the supported networks.

The fundamental principle of USDI is its 1:1 peg to the US Dollar, achieved through a direct backing mechanism with USDT. For every 1 USDI in circulation, there is 1 USDT held in reserve. This ensures that users can always redeem 1 USDI for 1 USDT (minus any potential minimal transaction fees on the respective blockchain).

2. No Native Utility or Governance Token

Unlike many blockchain projects, USDI does not have a separate native utility or governance token. The value proposition of USDI lies solely in its stability and interoperability as a stablecoin. Introducing a separate token could potentially:

• Introduce Complexity: Adding another token could confuse users and dilute the focus on USDI's core function.

• Create Volatility: A separate token would be subject to market fluctuations, contradicting the stable nature of USDI.

• Raise Regulatory Concerns: Introducing a non-stable asset alongside a stablecoin could attract unwanted regulatory scrutiny.

3. Minting and Burning Mechanism

The supply of USDI is dynamic and determined by user demand. The minting and burning mechanism through the USDI DApp ensures the 1:1 peg:

• Minting: Users can create (mint) USDI by depositing USDT into designated smart contracts through the USDI DApp on any of the supported EVM networks. For every 1 USDT deposited, 1 USDI is created and sent to the user's digital wallet on the chosen network.

• Burning: Users can destroy (burn) USDI to receive USDT. By sending USDI to the designated smart contracts through the USDI DApp on any supported EVM network, the corresponding amount of USDT is released from the reserves and sent to the user's digital wallet on the chosen network.

4. Fees and Revenue Model (Potential)

As a stablecoin focused on utility, USDI aims to minimize fees to encourage adoption. However, to sustain the project's development and operational costs, a minimal fee structure may be implemented in the future. Any potential fees would be transparent and clearly communicated to users. Possible fee scenarios could include:

• Small Transaction Fees: A very small percentage fee on the creation (minting) or destruction (burning) of USDI to cover operational costs (e.g., optimizing transaction costs on the blockchain, maintaining the DApp). These fees would be designed to be significantly lower than fees associated with using bridging solutions or centralized exchanges.

• Potential Integration Fees: If USDI becomes deeply integrated into specific DeFi protocols, there might be revenue-sharing arrangements or small fees associated with those integrations (again, designed to be minimal).

Important Note: The implementation and structure of any fees will be carefully considered and communicated to the community well in advance. The primary goal is to ensure USDI remains a cost-effective and accessible stablecoin.

5. Reserve Management and Transparency

Maintaining the 1:1 peg requires robust reserve management and transparency. Key aspects include:

• Dedicated Smart Contracts: The USDT reserves that back USDI will be held in secure and transparent smart contracts on the respective blockchains. The digital addresses of these contracts will be publicly available.

• Regular Audits: Independent third-party firms will conduct regular audits to verify that the amount of USDI in circulation matches the amount of USDT held in reserve. The reports from these audits will be made publicly available.

• Transparency Reporting: Regular reports detailing the total amount of USDI in circulation and the corresponding amount of USDT held in reserves will be published to ensure full transparency for the community.

6. Distribution and Initial Supply

As the supply of USDI is entirely determined by user demand through the creation (minting) process, there will be no pre-created or initial distribution of USDI. The total amount of USDI in existence will grow organically as users deposit USDT to create USDI on the supported networks.

7. Ecosystem Growth and Adoption

The "tokenomics" of USDI heavily relies on its successful integration and adoption within the broader DeFi ecosystem across multiple chains. Key drivers for growth include:

• Seamless Interoperability: The ease with which a stable asset pegged to the US Dollar can be moved across various EVM networks.

• Lower Transaction Costs: Offering a potentially cheaper way to transfer stablecoins compared to using bridging solutions or the main Ethereum network.

• Deep DeFi Integrations: Becoming a widely accepted stablecoin within decentralized exchanges (DEXs), lending platforms, yield aggregators, and other DeFi applications on the supported networks.

• Strong Community and Awareness: Building a strong and engaged community that supports and uses USDI.