JAM Tokenomics Update

To our JAM community,

We are excited to announce that we have raised $30m! The JAM token is the key to these new capital investment commitments and comes in various forms: token purchase programs, OTC deals, and token-backed credit facilities.

We also have seen enormous success with our staking program called JAM Treasury Whale Bonds with over 1 Billion JAM staked! The advantages of this staking program are not just to incentivize JAM purchases, but also to enable long term JAM whale hodlers to earn. The “treasury bond” program is different from traditional staking because the JAM is not “locked,” but rather goes back to the treasury. So in essence it’s a “delayed minting” program that rewards large buyers, very similar to the way traditional treasury bonds operate, hence the name. JAM will be minted in the future to repay these “treasury bond” hodlers when they mature.

In addition, our larger OTC deals and purchase programs require more JAM to be minted to sell to private party buyers. These buyers don’t intend to dump the token on the market but rather utilize algorithmic liquidation methodologies with limit orders to absorb organic buying demand. Many buyers intend to hodl large amounts for the longer term. With the JAM circulating market cap hovering between $3m to $10m depending on price and over 90% of the supply in circulation, we intend to mint more JAM to satisfy these demands and needs. Of course we would not want to sell $30m in JAM at today’s prices as that would in effect give a select few parties the vast majority of the JAM supply. Thus we plan to do this over time as the full value of JAM appreciates while optimizing tokenomics. This way we are incentivized to actualize the true market value of JAM. We plan to accomplish this through algorithmic buybacks as well as various kinds of marketing initiatives to bring new hodlers to the JAM community.

In order to accomplish these goals, the project requires additional JAM tokens to be minted to fulfill our obligations to OTC buyers, purchase programs, and JAM Treasury Whale Bond hodlers. This is in the best interest of the project and requires a modification to our current minting schedule. The current schedule of 1 Billion JAM per year does not fit our current needs, because it is an arbitrary amount of value with the changing price of JAM and happens at an arbitrary time that doesn’t reflect the dynamic nature of the project. Thus we will transition to minting on an as-needed basis for the time being until minting is no longer necessary. We plan to optimize tokenomics with buybacks and growing our ecosystem.

The 10% JAM fees on the platform for all transactions acts as a deflationary pressure on the tokenomics, so as we grow our community and transaction volume, deflation will increase in tandem accordingly. Eventually we will be in a situation where minting is no longer necessary and JAM will be in a constant deflationary state. This will happen when we achieve scale and real world adoption through fundamentals. As we are growing our nascent ecosystem and deploying funding, a more inflationary approach is necessary.

Managing tokenomics are more of an art form than a science, and we are taking every precaution to operate our treasury protocols with the utmost care and consideration to protect the needs of our project and community. We really appreciate our community’s continued support and dedication. We all look forward to this new phase of growth for the JAM ecosystem!