CNDT Token
CNDT is the native utility token of Conduct Protocol, designed with a fixed supply and Bitcoin-inspired economics to support network security, governance, and ecosystem growth.
Token Overview
- Token Name: Conduct Protocol
- Token Symbol: CNDT
- Total Supply: 21,000,000 CNDT (fixed)
- Initial Circulating Supply: ~7,000,000 CNDT (33.3% at genesis)
- Block Time: 2 minutes (262,800 blocks annually)
- Emission Model: Halving every 4 years (Bitcoin-inspired)
The fixed supply and halving mechanism create predictable, deflationary tokenomics that reward early participation while ensuring long-term sustainability.
Token Distribution
CNDT distribution balances ecosystem development, network security incentives, and fair allocation across stakeholders.
Genesis Allocation (33.3%)
The genesis allocation of 7,000,000 CNDT bootstraps the network with sufficient liquidity while maintaining long-term alignment through vesting schedules.
Treasury & Protocol Development (15%)
Allocation: 3,150,000 CNDT
Vesting: 12-month cliff, 48-month linear vest
The treasury funds core development, security audits, marketing initiatives, and business development. Strategic deployment follows governance-approved roadmaps focused on ecosystem growth and developer tooling.
Private Investors (10%)
Allocation: 2,100,000 CNDT
Vesting: 12-month cliff, 36-month linear vest
Strategic investors bring operational value beyond capital, including Bitcoin-focused funds, mining operations, and Lightning Network infrastructure providers. Geographic and sector diversification prevents concentration.
Team & Advisors (5%)
Allocation: 1,050,000 CNDT
Vesting: 12-month cliff, 48-month linear vest
Recognizes multi-year commitment required to build the protocol, covering core developers, researchers, business development, and advisors who provide strategic guidance.
Ecosystem Fund (3.3%)
Allocation: 700,000 CNDT
No vesting (available immediately with quarterly governance review)
Drives community engagement through developer grants, integration bounties, educational content, hackathon sponsorships, and community rewards programs.
Emission Schedule (66.7%)
Allocation: 14,000,000 CNDT distributed through block rewards
Following Bitcoin's halving model with adjustments for 2-minute block times:
- Years 1-4: 10 CNDT per block (~2,628,000 CNDT annually)
- Years 5-8: 5 CNDT per block (~1,314,000 CNDT annually)
- Years 9-12: 2.5 CNDT per block (~657,000 CNDT annually)
- Years 13-16: 1.25 CNDT per block (~328,500 CNDT annually)
- Beyond Year 16: Continues halving until all tokens are distributed
The faster block time creates more frequent reward distribution, improving validator cash flow and benefiting smaller validators.
Primary Utilities
Network Security
CNDT serves as the primary security mechanism through the innovative Bitcoin-linked staking system. Validators stake CNDT combined with demonstrated Bitcoin network usage to participate in consensus and earn rewards.
See the Protocol Tokenomics page for detailed staking mechanics and formulas.
Governance Participation
Token holders participate in protocol governance including parameter adjustments, treasury allocation, upgrade proposals, and strategic decisions. The governance system uses quadratic voting to prevent whale dominance.
Governance Parameters:
- Vote Weight: 1 CNDT = 1 vote
- Quorum Requirement: 10% of circulating supply
- Proposal Threshold: 100,000 CNDT required
- Voting Period: 7 days
As a closed-source protocol, voting mechanisms serve primarily as guidance for the Conduct team.
Transaction Fees
CNDT functions as the native gas token for all network operations including smart contract execution, cross-chain transactions, and data storage. Dynamic fee adjustment maintains predictable costs while capturing value during high-demand periods.
Revenue Sharing
Staked token holders receive proportional distribution of network fees, creating direct utility value. Revenue sources include transaction fees, cross-chain bridge operations, data storage fees, and premium services.
Value Accrual
CNDT captures value through multiple mechanisms:
Transaction Requirements
CNDT is required for all transactions on the Conduct blockchain, creating constant demand as network usage grows.
Data Storage in UTXOs: Conduct Blockchain allows for data storage within UTXOs (Unspent Transaction Outputs), enabling flexible on-chain data management. The cost scales with data size:
- Larger data storage requires more CNDT
- Creates economic incentive for efficient data usage
- Generates additional fee revenue as applications store data on-chain
Tax
A percentage of transaction fees are taxed:
- Base tax: 10% transaction tax rate
Fixed Supply
No additional minting beyond 21,000,000 CNDT ensures scarcity, with decreasing emissions through the halving schedule.
Network Effects
Higher transaction volumes increase fee revenues, enhanced security attracts larger users, and growing validator participation improves network resilience and decentralization.
How to Acquire CNDT
Validation Rewards
Run a validator node and earn block rewards plus transaction fees. Mobile devices can participate through the Conduct mobile application with integrated Bitcoin wallet.
Every Conduct application instance can operate as a mobile validator, democratizing network participation without dedicated infrastructure.
BTC/CNDT Swap
The Conduct mobile application features a built-in BTC/CNDT swap, allowing users to exchange Bitcoin for CNDT tokens directly within the app. This seamless integration eliminates the need for external exchanges and simplifies token acquisition for Bitcoin holders.
Ecosystem Participation
Earn CNDT through developer grants, integration bounties, community rewards, governance participation, and educational content creation funded by the Ecosystem Fund.