Siacoin (SC)

Tokenomics & Utility

Monetary policy

SC has no fixed maximum supply. New coins are minted as block rewards to incentivize miners and secure the chain. The block reward began at 300,000 SC and decreases by 1 SC per block until it reaches a permanent floor of 30,000 SC at height 270,000; thereafter, issuance continues at 30,000 SC per block. This schedule produces high early inflation that falls markedly over time. SC amounts are represented in “hastings,” a base unit where 1 SC equals 10^24 hastings. (docs.sia.tech)

In February 2021, a community‑approved hard fork created the Sia Foundation and adjusted the supply schedule slightly. The Foundation receives an on‑chain subsidy—materialized as an output of 131.4 million SC every 4,380 blocks—plus a one‑time initial allocation of roughly 1.5768 billion SC to fund development. This changed the inflation path temporarily for about a year before returning near its pre‑fork trajectory. (sia.tech)

Utility in the protocol

SC is used to:

• Fund file contracts and pay hosts for storage and bandwidth.
• Post host collateral that is returned only upon valid storage proofs.
• Pay miner fees and block rewards.
• Disburse the Foundation subsidy. (sia.tech)

Sia also has a separate, fixed‑supply revenue‑sharing token called Siafunds (SF). There are 10,000 Siafunds in total. When storage contracts finalize, 3.9% of certain contract funds (such as renter storage and bandwidth payments and host collateral) are set aside and distributed pro rata to Siafund holders. Siafunds are treated as securities in the United States and are typically traded OTC rather than on mainstream exchanges. (docs.sia.tech)