Understanding aelf Economic System and How its Governance Works

Wayne Jones • September 10, 2021

Bitcoin's introduction stands as the door to the transcendence of blockchain technology today. The disruptions in the financial world only are proof enough of what blockchain can manage. However, this growth is not only helping the world to move from traditional finance to digital money.

Healthcare, supply chain management, the Internet, education, to highlight a few sectors, are examples of what technology entails. Nonetheless, blockchain companies are yet to perfect a few issues in the space.

Projects coming up are exploring the options to improve blockchain scalability. One such project is aelf  investing significantly in blockchain interoperability that stands among the best scalability solutions. This article hopes to shed more light on aelf's main chain's economics and governance. Let's get right into it!

Glimpsing at the aelf Project

Aelf is an open-source blockchain project focused on cloud computing for blockchain solutions. Furthermore, it is revealing a prestigious era in web 3.0 combined with cross-chain interoperability. Users run their sidechains along with the mainnet, supporting the ability to deploy individual dApps on the platform.

While the platform is still checking through the system's security, its progress has been impressive. Currently, it is awaiting its token swap, a vital step in an overall mainnet experience for users. It will further be an opportunity to exercise governance and voting on the platform.

Its aim to provide massive blockchain infrastructure to its clients is backed by scalable mainnet features. It also wishes its users to have all the essential information of the mainnet. In that case, the platform has clear documentation and block explorer for the same. Additionally, it has a web wallet service for asset storage and a mobile wallet app to increase convenience.

Developers have their space to develop dApps, with more information on how to join the mainnet and governance system. Soon, the platform will be introducing its dApp and a DAO MGMT committee. Both are moves to add to its ecosystem's wellness and improve its decentralized governance.

Understanding the aelf Mainnet Economic System

Aelf is a developmental giant of governance mechanisms that could help corporates in a decentralized manner. The blockchain runs under a unique consensus algorithm, AEDPoS, adding to its scalability. According to the platform, it highly depends on its economics and governance for system stability. Moreover, it is a way to building an active community for the network to thrive.

The ELF token is the ERC-20 coin behind aelf's ecosystem, governing transaction fees, voting rights, and rewards. However, there are other tokens, including the resource token paid by developers, VOTE token, and SHARE token.

aelf Tokenomics

The aelf ecosystem has several coins that you need to know about. Here is a simple breakdown of their supply:

  • ELF token: 1 billion coins total supply
  • The resources are divided into various parameters: 25% for foundation, 25% for sale, 12% for AEDPoS, 10% for partnerships, 16% for the team, and 12% for marketing and airdrops.
  • Resource tokens: 500 million coins for every category under resource tokens, including READ, WRITE, RAM, STORAGE, TRAFFIC, DISK, NET, and CPU
  • ELF and Resource tokens both have a fixed supply
  • The platform will half-block rewards every four years.
  • The platform will burn 10% of transaction fees and 50% of the 0.5% fee incurred during resource token purchase. The rest goes to the dividend pools.

Ecosystem Contributors

  • Block producers/ production nodes: Block producers' role is to following the mainnet's consensus algorithm to generate blocks. The weight of production highly determines the rewards a node will collect. Also, the number of nodes on the mainnet is 17 + 2n, where n is the years aelf's mainnet has been open for elections.
  • Candidate Nodes: These nodes receive a lower vote and do not make it to block production level. Candidate nodes are responsible for block verification and production node alternation. In the long run, they contribute to the stability of aelf's ecosystem. Any user can be a candidate node by staking 100 000 or more ELF on the chain.
  • Voters: They are responsible for choosing production nodes on the network. Depending on a specific period provided, a voter can lock their votes and, in return, earn rewards. After staking ELF for voting rights, you can lock them for 3, 6, 12, 24, or 36 months. The longer the period, the more immense the reward.

A point worth noting is all the rewards for the above contributors come from the mainnet's dividend pools. Voters get the highest percentage in the pool at 75%, candidate nodes at 5%, and production nodes at 20%.

aelf Governance

aelf holds governance at high standards, using sophisticated models to ensure order on the chain. It depends on several governance models depending on the magnitude of the situation that needs decision-making. There are four governance models at work on the aelf mainnet, including:

  • The Parliament Governance Model: The model controls decisions on user voter rewards, the mainnet's smart contract upgrade or release, system contract method fee, adjusting dividend pool weights, among others.
  • The Referendum Governance Model: This model gives users a voting opportunity for block producers and candidate nodes.
  • Association Governance Model: If a group of users jointly manage an account, they can settle on a consensus depending on the decision and the number of the association members. It comes in handy in case of an issue such as funds withdrawal.
  • Custom Governance Model: This model might be the most important since it sorts out the most number of issues on aelf. Combining the characteristics of the previous 3 models, the model mainly sorts out financial issues on the platform, such as interest rates.

Closing Thoughts

Aelf's governance models extend beyond this to the sidechains, but for different reasons. However, that is a topic for another day. However, this is a simplified breakdown of the extensive features of the project's mainnet governance and economic system.

Hopefully, it achieves its mission to provide real-world blockchain solutions to users while maintaining scalability. Furthermore, it shows how far blockchain technology has come and its growth potential.

For now, keep watch for the upcoming mainnet token swap set for September 9, GMT +8. Keep in mind that there will also be an airdrop on September 23, GMT +8. For more details on what the project has in store for the future, join its growing community on Twitter and Telegram.

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. None of the content on Crypto Folds is investment advice nor is it a replacement for advice from a certified financial planner. Please do your own research before purchasing or investing into any cryptocurrency.  

Building a Stronger WEMIX: Strategic Updates for 2025

By press release • May 9, 2025
WEMIX has announced a comprehensive strategy to reinforce the long-term stability of its blockchain ecosystem. This includes a phased coin buyback, new Web3 game launches, and major technical upgrades – each designed to position the platform for sustained growth. Strategic Actions Phase 1 Buyback (Mar 14–Apr 21): Over 10 million coins repurchased (USD 7.5M equivalent) using TWAP/VWAP mechanisms. External auditors have verified the process. Phase 2 Buyback Underway (Announced Apr 22): Targets 20 million additional coins. Results will be disclosed after the program concludes. Upcoming Game Releases: To expand the ecosystem further, new game titles will feature restructured tokenomics and advanced NFT functionality. 2025 System Enhancements: In March, the platform underwent a full-scale maintenance process to reinforce user security and reliability. These steps are part of WEMADE’s commitment to sustainable platform development, transparent ecosystem management, and long-term user trust. About WEMADE WEMADE is a South Korean company with a two-decade legacy in digital entertainment and platform innovation. WEMADE’s WEMIX platform supports a wide range of Web3 services, including token management, NFT operations, DeFi tools, and decentralized gaming experiences, from its roots in online gaming to its current leadership in blockchain integration. The company is dedicated to building resilient systems where players and creators can collaborate and thrive: www.wemade.com . 

Principal Protocol Announces Innovative RWA-DeFi Concept with 100% Asset-Backed Valuation

By press release • May 7, 2025
Principal Protocol (PRN) , a new project blending traditional RWA with Defi concepts, has announced an innovative approach to tokenizing real-world assets, including a 100% asset-backed valuation for the projects it offers. The company aims to disrupt the decentralized finance landscape and democratize access to RWA investments. An ongoing private sale for the PRINCIPAL token (PRN) should help fund the project’s expansion and development. Principal Protocol's "Digitized Estates" concept focuses mainly on real estate assets, seeking to eliminate geographical barriers and provide greater liquidity. The project leverages blockchain technology and smart contracts to enable fractional ownership of real estate assets through digital NFT tokens. All PRN projects are tokenized into NFTs and issued to the buyers. The participants then access rewards depending on the RWA asset’s performance and potential returns. Principal Protocol has multiple safety nets in place to protect its RWA projects’ valuations. These safeguards include a bi-annual valuation of each project and a protocol-owned Crypto Reserve of various blue chip coins. This way, buyers can rely on several precautions guarding their participation in a tokenized RWA. PRN will periodically acquire real estate property and structure it into a fixed number of Non-fungible Tokens (NFT). The project will then distribute rewards via automatic airdrops to the NFT holders' wallets every financial quarter. Also, Principal Protocol plans to integrate a DeFi platform, enabling NFT holders to stake their holdings as collateral on Defi platforms and protocols. PRN will place each acquired property project under an SPV company wholly owned by Principal Protocol to ensure actual ownership. Every property will benefit from proper accounting records published quarterly and accessible to the individual project NFT holders via specific channels. Lastly, PRN will distribute individual project net profits as rewards on the blockchain. Principal Protocol believes that its approach rewards participants with perks and benefits that are difficult to find in other projects, such as: Global Accessibility PRN makes participation in global real estate markets available, opening the doors to communities that didn't previously have access to them. Liquidity The project relies on sturdy blockchain for easy token trading, potentially increasing liquidity better than traditional options. Fractional Ownership Principal Protocol lets participants own fractions of high-value properties, reducing the barrier to entry. Transparency PRN's use of smart contracts ensures a transparent distribution of benefits and rewards. Efficiency PRN's seamless blend of RWA and DeFi via blockchain technology creates a secure, decentralized environment. Reduced intermediaries and streamlined processes can lead to cost savings. The PRN Token is the backbone of Principal Protocol and its rapidly growing ecosystem. The team has set a maximum supply of 100,000,000 PRN tokens distributed as follows: Ecosystem - 50,000,000 (50%) Team - 10,000,000 (10%) Advisors - 5,000,000 (5%) Marketing - 5,000,000 (5%) Reserves - 20,000,000 (20%) Private Sales - 10,000,000 (10%) As Principal Protocol scales its platform, it aims to diversify its portfolio, integrate DeFi, and develop a Real Estate Attestation Chain. The latter will enable users globally to double-check the validity and authenticity of title deeds and various real estate documentation on the chain. The project has an ambitious roadmap ahead with several important milestones: Mobile App beta test launch (June 2025) Mobile App launch (July 2025) Defi platform integration (August 2025) Platform scaling (October 2025) Asset class diversification (Jan 2026) Development of Real Estate Attestation Chain (June 2026) Initial Public Offering (Jan 2027) About Principal Protocol (PRN) Principal Protocol aims to bridge DeFi and RWA and democratize access to real estate assets via its Digitized Estates concept. Behind the project is a professional team with solid expertise in relevant industries and areas, including real estate, blockchain, marketing, and entrepreneurship. PRN’s web app beta is currently live at app.prnpl.io . You can contact Principal Protocol here to learn more about the ongoing PRN token private sale: jason@prnpl.io For ongoing updates and community engagement, follow Principal Protocol here: Website , X , and Telegram . 

MNEE Stablecoin Now Available on HandCash: Unlocking Instant Transactions with No Gas Token Required

By press release • May 6, 2025
MNEE, an instant USD-backed stablecoin, is now live on HandCash , a leading wallet powering game economies and in-app transactions. This integration marks an advancement in the accessibility and real-world utility of stablecoins, especially for micropayment use cases. The integration allows HandCash users to hold, spend, and receive MNEE directly within the HandCash wallet without needing to manage gas tokens, private keys, or deal with blockchain complexity. Consumers and developers gain a frictionless payment method that settles instantly, with transaction costs as low as one-tenth of a cent - making it ideal for microtransactions, tipping, and in-app purchases. “This integration unlocks new possibilities for game developers building in-game economies, and real-time micropayments. It’s plug-and-play stablecoin utility,” said HandCash CEO Rafa Jiménez. HandCash’s mobile wallet and Connect SDK allow games and platforms to integrate seamless payments, and token economies with minimal effort. MNEE strengthens this ecosystem by providing a fully collateralized, regulated, and scalable stablecoin tailored for modern digital economies. For MNEE , the HandCash launch opens direct access to a global community of users and developers already building next-generation apps — from tipping streamers to trading game items and earning tokenized rewards. Users can now transact with a stable, instant, and user-friendly digital currency. “This partnership is a clear win for both developers and users,” said Harbind Likhari, Executive Director at MNEE. “It delivers on everything a stablecoin should be — fast, affordable, and simple — while unlocking real-world use across games, social apps, and digital commerce.” The integration between MNEE and HandCash sets the stage for a new era in digital payments — one where speed, compliance, and ease of use come together to power stablecoin adoption in everyday life. About MNEE MNEE is a USD-backed stablecoin enabling instant, scalable payments that cost next to nothing, and simple usage with no gas token required. Built on the 1Sat Ordinals protocol and ERC-20, MNEE’s commitment to building the future of money focuses on delivering secure, efficient payment solutions that cost next to nothing across a wide range of industries and platforms. Media Contact press@mnee.io www.mnee.io 

PeerGame Introduces Seamless Crypto Transactions with WalletConnect Integration

By press release • May 6, 2025
Leading cryptocurrency gaming company PeerGame has announced the launch of its new cashier system - its platform will now be integrated with WalletConnect for seamless, secure, and fast crypto transactions. The investment in this integration removes intermediaries, offering players a more efficient and user-controlled payment process, with direct wallet deposits and withdrawals for quicker transactions, and further bolstering PeerGame’s security and privacy offerings. WalletConnect is a feature that enables players to connect their wallets to the platform seamlessly, enabling crypto transactions without centralised payment solutions. This enhances security and privacy, as transactions are made directly from users' wallets, reducing the risks of third-party custodians and increasing transparency through blockchain’s trustless principles. This innovative partnership highlights PeerGame’s commitment to decentralised payments, providing players with greater control over their funds and enabling instant, secure transactions. By integrating WalletConnect, PeerGame delivers a future-focused solution, ensuring a more efficient and user-friendly payment experience in the Web3 gaming sector. Margie Dobrowolski, Project Lead at PeerGame, commented: "This new integration with WalletConnect offers our players a unique advantage, allowing them to perform seamless crypto transactions directly from their wallets. While other platforms may offer similar features, PeerGame’s integration is a true innovation in the Web3 gaming space, enhancing the overall gaming experience and setting us apart as pioneers in the industry." For more information about PeerGame visit https://peergame.com/ . About PeerGame PeerGame is transforming the Web3 gaming experience by integrating WalletConnect, enabling seamless, secure, and decentralised crypto transactions, giving players greater control over their funds. 
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