Tenseruem’s tokenomics have been dissected by some of the brightest minds in blockchain and finance to ensure that a sustainable and functional model is integrated into the protocol. Tensereum - TETH token - will have a fixed total supply and will be non-inflationary once the supply is circulating. 20% of the total supply will be ‘premined’ - this is vital for the early funding and functionality of TETH and the Tensereum blockchain. The distribution can be seen in the chart below.

The 20% team allocation is crucial to understand this distribution. The term “team” here is not used traditionally; Tensereum intends to be a community-driven project without a centralized team building the project. These funds are allocated to anyone who participates actively in the development and success of Tensereum. Consider it an open-source community fund more than a direct team fund; can you contribute to the coding? Earn TETH for your contribution! Are you willing to allocate time for community management? Great, earn TETH for it! Everyone can be and is welcome to be part of the Tensereum team.

The remaining 80% will be distributed as mining rewards over 20 years. Block rewards will halve every two years; having higher block rewards for the initial years will incentivize participation. After 20 years, the maximum supply will circulate, and no ‘new’ TETH will be mined in block rewards. TETH is non-inflationary and does not have a tail emission. Once the total supply is mined, the circulating supply will never increase. It’s important to remember that although no ‘new’ TETH will be mined, blocks will still reward protocol fees, so mining will not be without reward.

Tensereums’ Proof-of-AI (PoAI) consensus mines blocks that consist of two components: mining block rewards and transaction fees. Block rewards will be distributed proportionally to all participants contributing to the network. Resources allocated to the security and functionality of the network are calculated to determine individual proportions of the distribution.

The block rewards in the chain's infancy will consist of a higher mining reward to transaction fee ratio, which incentivizes growth and ensures the stability of the protocol. As the network grows and more transactions are processed, the ratio will invert with a higher percentage of the block reward coming from transaction fees. Once mining rewards are fully allocated after 20 years, the block rewards will continue as solely transaction fees, which will be sustainable once the network matures

At the current moment there are many projects jumping into AI or claiming to utlize AI in an attempt to make quick money. Tenseruem is a project that is fully focussed on the full utilization of both blockchain and AI technology. TETH is a crucial aspect of the network, being required to cover transaction fees for large data transactions involved in AI models. Due to TETH having a fixed maximum supply and a low inflationary distribution rate to reach that supply cap the token is also positioned to be in high demand - new supply rate slows and the demand increases with network growth. Having both demand shock and supply shock can be compared to the recent action with Bitcoin, with the ETFs dramatically increasing demand and the upcoming halving about to reduce supply significantly.