Your Guide to Understanding the $ONO Token

Sep 9, 2025

At the time of designing the tokenomics, onocoy aimed to build a stable system that would serve all stakeholders well for years to come, while providing the necessary incentives to get through the critical start-up phase.

This led to the following principles:

1. The system must be economically viable and attractive to all stakeholders

2. Users must have stable service prices. And they need ease of use similar to their past experiences.

3. Reference station operators (aka miners) must have a strong incentive to provide data in the quality and availability required by users

4. Miners are de facto small investors and must participate in the long-term success of onocoy

Tokenomics

These principles are translated into onocoy's tokenomics through a dual-token model with a capped, deflationary $ONO utility token and Data Credits for network utility payments.

1. $ONO drives miner incentives and governance

2. Data Credits (uncapped, fiat-pegged, non-transferable) are used for stable utility payments - purchased for accessing GNSS reference station data and burned after use

How Does the Value Flow Into the System?

onocoy's GNSS services are available to users in exchange for Data Credits, which are purchased with FIAT and burned after the service is used. This generates recurring revenue from real-world usage, which is the key driver for the tokenomics. onocoy uses these revenues to finance operations and it may buyback and burn tokens.

How Do Reference Station Operators Get Value?

Miners provide data to onocoy in return for $ONO tokens. The amount of the $ONO reward is dependent on data quality, availability and location uniqueness. By correctly setting miner incentives, onocoy makes sure miners provide data the way users need them.

And since $ONO is listed on crypto exchange(s), miners can eventually convert their tokens into stablecoins (or FIAT).

$ONO’s deflationary token design

A stable tokenomics mandates a capped token supply and deflationary elements to incentive miners to buy and operates reference stations well before demand from users has pickedup:

1. $ONO has a capped supply of 810M.

2. The release of tokens follows a deflationary factor of 16%, which equals a halving every 4 years. This is perfectly tuned to the needs of an infrastructure project (and yet somewhat similar to Bitcoin)

3. A percentage of the tokens bought back from the exchange are burned, which adds yet another deflationary element by making the total supply scarcer.

The release of $ONO get scarcer over time (halving) while burning increases as the network grows (more users = more demand = more burn). Together, this creates long-term upward value pressure on the $ONO token while users still benefit from pay stable service prices through Data Credits.

TL;DR

$ONO was designed with capped supply and deflationary elements to create systematic long-term upward pressure on the price. This is the basis for encouraging miners, investors, and the team to contribute to onocoy well before sufficient customer revenue flows into the system (tokenomics) for break-even. Due to its status as a non-profit association under Swiss law, onocoy cannot distribute profits. The only legally sound way to dispose profits is through token buybacks and burns. This further increases upward price pressure on $ONO.

However, in order to benefit from this upward pressure, the stakeholders listed above must take a sufficiently long-term view. Fortunately, onocoy has already generated its first revenues, which shows that there is demand for onocoy's services. In addition, onocoy has also bought back and burned tokens on a smaller scale.