- Render Network’s RNDR token is up over 90% in the past week
- RNDR has increased over 300% in the last 30 days to reach around $1.69
- The Render Network Foundation has been established to maintain the protocol and grow the community
- The project voted 100% in favor of adopting a new tokenomics model called burn-and-mint equilibrium
Render Network’s RNDR token is making headlines after its price increased by over 90% in the past week. CoinGecko reported the token’s recent surge, which has also seen an increase of over 300% in the last 30 days to reach a value of around $1.69. The new growth is attributed to the launch of the Render Network Foundation and the passing of a new tokenomics model by the project’s DAO.
The Render Network Foundation, which was established on January 20, is a not-for-profit organization aimed at maintaining the core Render Network protocol and growing its community and ecosystem. Additionally, the project voted 100% in favor of adopting a new tokenomics model, burn-and-mint equilibrium, which incentivizes market participants to accumulate RNDR in the near term.
Render Network offers artists a distributed network of GPUs to render their 3D designs, with the RNDR token acting as the proprietary payment currency for the rendering services. The burn-and-mint equilibrium model operates by setting the price of “jobs-to-be-done” in USD and having creators burn RNDR tokens equivalent to the job price. Non-transferable, non-fungible “Coupon Tokens” (or “Render Credits”) are then issued to track completed jobs.
Node operators are compensated for their work through base-asset issuance incentives that reward their availability to take on jobs and the number of jobs completed within a network’s epoch. A net emissions cap is set to ensure rewards continue, even after the cap has been reached, and the emission amount is adjusted based on network growth requirements. The system operates in equilibrium if the number of tokens burned is equal to the number minted, and if usage grows, the supply decreases and creates upward price pressure, and vice versa for usage slowdowns.
Render is not the first project to adopt the burn-and-mint equilibrium tokenomics model, as a matter of fact the Helium Network and the now-defunct Factom also made use of it.