Tokenomics
MIZU, the native token of MIZUHIKI, serves a dual purpose within the ecosystem:
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MIZU function as the native token of MIZUHIKI, powering the execution of smart contracts and blockchain applications.
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Validator Client Operators and stakers stake MIZU tokens and are rewarded in MIZU tokens for their role in securing the network. Rewards in MIZU tokens are earned at a target rate for the first ten years of the network being live, alongside transaction fees paid by MIZUHIKI users.
Staking Ecosystem
The design of the MIZUHIKI Validator Network consists of 21 Validator Client Operators, with validator client infrastructure all on-shore in Japan.
MIZUHIKI wants to drive a robust staking/ownership ecosystem, with millions of companies and individuals in Japan via delegate and retail staking. Amongst the 21 validator clients, MIZUHIKI will split the allocation between full node, delegate, and retail staking services.
For the first five-year phase from Mainnet launch (2025-2030), the 21 MIZUHIKI validator clients will be allocated the following staking options:
| Node Type | Entity Type | Allocated Nodes | Stakers per Node | Year 0-5 Expected APY |
|---|---|---|---|---|
| Full Node | Nikkei 100 | 8 ～ 10 | 1 | 20% |
| Delegate Staking (Supported by trusted delegate partners)1 | Medium to Large Enterprises | 8 ～ 10 | 100s to 1,000s | 10％～ 15％ |
| Retail Staking (Supported by AltX Research) | Small businesses and Individuals worldwide | 3 ～ 5 | Up to millions | Floating Rate |
| Total Validator Clients | - | 21 | - | - |
Table 1: Staking and Validator Ecosystem
Issuance
The total initial supply of MIZU tokens has been set at 50 billion units.
Below, we detail the MIZU token allocation chart, outlining how the initial supply of tokens is distributed among different roles, each with specific vesting conditions and unlock schedules.
| Group | Allocation | Token units（in millions） |
|---|---|---|
| Validator Client Operators | 21% | 10,500 |
| AltX Research | 15% | 7,500 |
| Foundation - Treasury | 25% | 12,500 |
| Foundation - Public Sale | 34% | 17,000 |
| Foundation - Developer Engagement | 5% | 2,500 |
| Total | 100% | 50,000 |
Table 2: MIZU token allocation
Validator Client Operators (21%)
Each Validator Client Operator ('Operator') must purchase the minimum stake required to become an Operator, which is equal to 1% of the total initial supply. These tokens are deposited into the validator smart contract and will remain locked.
AltX（15％)
The AltX allocation is set aside as an incentive for the MIZUHIKI founders, shareholders, developers, and core team members to recognize their contributions and align their interests with the project's long-term success and growth.
Foundation - Treasury (25%)
Of the initial token supply, 25% will be allocated to the Foundation treasure specifically earmarked for the Community Fund. This allocation is designed to support the growth and development of the MIZU token ecosystem by funding community-driven projects, events, and initiatives. It serves as a financial reservoir to incentivize participation, foster innovation, and encourage the active involvement of community members in the project's expansion and success.。
Foundation - Public Sale (34%)
Of the initial token supply, 34% will be allocated to the Foundation treasury for sale to the public on international and domestic exchanges. The Public Sale portion is the share of tokens that will be offered in tranches over time to investors. It provides access and liquidity to the MIZU tokens, while the Foundation ensures this sale aligns with the Foundation mission. These tokens are not vested as this sale will be conducted through an exchange listing and offerings.
Foundation - Developer Engagement Fund (5%)
The Developer Engagement allocation distributes tokens to new and existing MIZUHIKI community developers to increase participation in the Layer 1 development and application development - including but not limited to the MIZUHIKI Compliance Suite and other Japan-focussed compliance technologies - and to enhance token circulation, reward loyalty and further support developer engagement.
Issuance and Rewards
MIZU stakers are rewarded for their active and honest participation in securing the network. For the first 10 years of operation, stakers will earn staking rewards in the form of issuance rewards and transaction fees.
After 10 years, we envision a high level of transaction volume will be sufficient to reward validators for their securing of the network via transaction fees alone.
Issuance is set to decrease over time, with the goal of reaching zero after 10 years.
Given the MIZUHIKI block time of 6 seconds, the issuance reward will be 400 MIZU tokens per block. Assuming each validator client has an initial stake of 500 million initial MIZU tokens, thus a total of 10.5 billion MIZU tokens across all 21 validator clients, the issuance rewards are as follows:
- Year 1-5: 20% APY issuance reward (2.1 billion MIZU tokens issued per year)）
- Year 5-10: 10% APY issuance reward (1.05 billion MIZU tokens issued per year)
Full node stakers (i.e., Validator Client Operators) will receive the entirety of their validator client's staking reward, while stakers in staking pools will receive the reward proportionate to their stake in the pool.
Blockchain transaction fees are paid by MIZUHIKI users in MIZU tokens. Like Ethereum, transactions will include a base fee to pay for the processing of the transaction, and an optional priority fee for transaction priortisation. Base fees are burned, or removed from circulation, to avoid collusion between validators and customers2.
The Foundation is actively researching how transaction fees may be subsidized for stablecoins and other essential use cases through mechanisms embedded at the Layer 1 level.
The flowchart below breaks down the economic dynamics within the MIZUHIKI ecosystem:
