Secret Network mints 1.079 billion tokens to fund operations after main developer exits
Secret Network creates new tokens to keep running after developer leaves
Secret Network, a blockchain platform, created 1.079 billion new SCRT tokens overnight. This was done to fund its operations after its main developer, SCRT Labs, announced it would stop supporting the network on September 1.
The new tokens were added through a software upgrade called v1.26.0, which was approved by the network’s community in Proposal 365. The upgrade was activated at block 26,790,327 on August 21.
What the token creation means for holders
Before the upgrade, the total number of SCRT tokens was about 362 million. After the upgrade, the total supply increased to approximately 1.443 billion tokens. This means the original tokens now represent about 25% of the total supply, reducing the share of existing holders.
The new tokens were allocated to different programs to keep the network running. These include:
- 299 million tokens for foundation and core development
- 178 million tokens for an ecosystem fund
- 72 million tokens each for advisors, research and development, and validators
- 43 million tokens for builders and relayers
- 44 million tokens for remediation
The upgrade also set the network’s inflation rate at 5% per year.
Why the developer’s exit matters
SCRT Labs, the main developer of Secret Network, announced it would stop supporting the network on September 1. The community voted against a proposal (Proposal 360) that would have moved some operations to another blockchain called Arbitrum. Without SCRT Labs’ support, the network’s future depends on the community and validators to maintain it.
The new tokens are meant to provide funding for development, infrastructure, and validator support. However, it is still unclear if the community can sustain the network long-term without the main developer.
What is confirmed
- The network created 1.079 billion new SCRT tokens through Proposal 365.
- The upgrade was activated on August 21 at block 26,790,327.
- The total supply of SCRT tokens is now approximately 1.443 billion.
- SCRT Labs will stop supporting the network on September 1.
- The community rejected Proposal 360, which would have moved some operations to Arbitrum.
What is still unclear
- Whether the community can sustain the network without SCRT Labs’ support.
- How the reduction in token share will affect the value and perception of SCRT for existing holders.
- If the allocated funds will be enough to cover long-term development and validator costs.
Why this matters for Secret Network users
The creation of new tokens and the exit of the main developer are significant changes for Secret Network. Users and holders of SCRT tokens may see their share of the total supply reduced, which could impact the token’s value. The network’s ability to continue operating smoothly now depends on the community’s efforts to maintain development and validator support.
