SCRT is the native asset of Secret Network and was launched in 2020. It’s used to pay for network transaction fees and can be staked to earn rewards and participate in governance on Secret Network.

Other forms of SCRT include:

• sSCRT-a privacy-preserving version of SCRT
• seSCRT and stkd-SCRT-liquid staking derivatives of SCRT that accumulate value as if they were staked, but are not subject to the limitations typically associated with staking (e.g. 21-day unbond periods)

Secret Network is a Delegated Proof of Stake network (DPoS).

For a node to validate a block on Secret, the chain—and the community—must have the means to trust that node. That’s where staking comes in.

Users lock up or bond their SCRT to a node through a process called delegation.

Node operators (called Secret nodes) must stake their SCRT as well to operate a node. In return, these Secret nodes receive inflation rewards and a portion of the transaction fees.

As a result of the inflationary mechanics described above, SCRT has no max supply.

However, staking is designed to outpace inflation. Currently, the SCRT token supply inflates at 15% per year. Staking yields an APR of 22-27%.

This variable APR range is contingent on the percentage of SCRT bonded at any given time. When under 67% of the supply is staked, the APR yield gradually increases. When above 67%, the rate gradually decreases.

To try and calculate your real return on staking, you’d want to use something like this formula:

Staking APR % - (Validator Commission Percentage/100 * APR) - 15% Inflation - Taxes = Adjusted return %

You can also use a staking ROI calculator like this one from Secure Secrets.

The total supply and distribution of SCRT is always changing. The chart below represents a recent capture of this data.

For more information on what the SCRT token supply and distribution looked like initially, check out this blog post from December 2020.

The community can vote to allocate portions of network transaction fees for specific purposes.

There are currently two taxes in place:

1. The Foundation Tax. 10% of all transaction fees go towards this tax, with currently 40% going to support the Secret Foundation, while 60% going to the Terra Developer Fund. The Terra Developer Fund is designed to attract and fund projects from the Terra ecosystem that want to relocate to Secret.
2. The Community Pool. 2% of all transaction fees go to the Community pool (represented on the chart above by the orange sliver), which is governed by the community. Any community member can make a proposal about how funds from the pool should be allocated.

This article is a temporary snapshot of the SCRT tokenomics data as of December, 2022. Token distribution and supply are constantly changing. If you’d like to further research Secret Network tokenomics, visit a block explorer like Mintscan.