What is eGold?

eGold is the native currency of the MultiversX blockchain and is designed for simplicity and global adoption.

Alex avatar
Written by Alex
Updated over a week ago

eGold is the native currency of the MultiversX blockchain and is designed for simplicity and global adoption. There are only 20 Mil initial eGold at Genesis relative to 8 Bil people. This means there is a very limited supply of only 0.0025 eGold per person. This sets an arms race game of accumulation in motion, since owning a few thousand eGold now is like owning a few thousand Bitcoin in 2010.

There are strong staking incentives for validators to secure the MultiversX network. At first, these staking incentives come from new supply issued yearly, but as adoption kicks in, inflation is substituted with transaction fees to cover the staking rewards. Furthermore, in contrast to most other blockchain networks where the new issuance is infinite and uncapped, in MultiversX this sum is capped to a theoretical supply limit of 31,415,926 eGold which can be reached over 10 years.

One of the most powerful features of the eGold economic model is that each transaction fee paid reduces the theoretical limit by substituting inflation with fees, thus making eGold more scarce, ensuring that the 31.4M max supply limit will never be reached. Thus, MultiversX offers arguably one of the strongest adoption models in the blockchain space, thanks to the network being able to immediately transition to a fully deflationary model via any adoption scenario.

eGold has taken the most robust and universal store of value in existence and improved its every aspect by making it digital. Whether it's fungibility, portability, durability, divisibility, impossibility to be counterfeited, seamless transferability, scarcity, or non-sovereignty, all of these take a superlative form in eGold.

But perhaps the most important aspects when it comes to eGold, are global transferability at a negligible cost via any communication channel, infinite programmability, and digital scarcity.

Similar to the evolution of mail to email, from books to ebooks, now we have the evolution from gold to eGold: digital gold or gold 2.0.

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