Tokenomics & Inflation

• Minting Power of HUBs:

Each HUB in the system is endowed with a specific minting power. This minting power is a crucial attribute that determines the HUB’s ability to generate rewards or cryptocurrency.

• Difficulty Adjustment and Minting Power Retention:

Every 30 days, the system undergoes a difficulty adjustment. This means that new HUBs created after each adjustment have less minting power compared to existing ones. However, a HUB that has acquired a specific minting power retains that power level for the first two years following its activation. This provides stability and predictability for early adopters.

• Locking of NRT (Newly Released Tokens) Linked to HUB:

When Newly Released Tokens (NRT) are linked to a HUB, they are locked for a period of 720 days. This long-term lock is likely designed to stabilize the token supply and prevent sudden market fluctuations.

• Calculation of Max Minting Production Daily (MMPD):

The MMPD is calculated by dividing the Minting Power (MP) of a HUB by its cycle life. This formula determines the daily token generation capacity of each HUB.

• Distribution and Locking of NRT:

Of the Newly Released Tokens (NRT), 60% can be withdrawn by the user immediately.

The remaining 40% is temporarily locked in a wallet. This portion is only unlocked after a period of 720 days, counting from the date of the first NRT linked to the HUB.

This system appears to create a balanced approach to token generation and distribution, incentivizing early participation while also implementing mechanisms to ensure market stability. The locking and gradual release of tokens could help manage the token supply, potentially preventing inflation and encouraging long-term investment in the platform.

• The "Value at Market (VM) and Increase Price (IP) Evaluation"

The "Value at Market (VM) and Increase Price (IP) Evaluation" process you've described is a method for adjusting a reward system based on the relationship between two key financial metrics: the Value at Market (VM) and the Increase Price (IP). This system seems to be designed for a reward or incentive program, possibly in a trading or investment context. Here's a refined explanation of the process:

Comparison of VM and IP: The first step involves comparing the current Value at Market (VM) with the Increase Price (IP). This comparison determines how the reward amount is adjusted.

Adjustment for VM > IP:

• Formula Application: If the VM exceeds the IP, the Maximum Retrievable Daily Reward amount is recalculated.

• New Calculation: The new reward amount is determined by multiplying the existing Maximum Retrievable Daily Reward amount by the ratio of IP to another metric (possibly PTM, as mentioned in your formula).

• Purpose: This adjustment reflects the growth of the VM over the IP, implying a positive market performance.

No Adjustment for VM ≤ IP:

• Stable Reward: If the VM is less than or equal to the IP, the Maximum Retrievable Daily Reward amount remains the same.

• Progression to Next Step: In this case, the user moves forward to the subsequent step in the process without any change in the reward amount.

This approach balances incentivization with market performance, encouraging participants to aim for scenarios where the VM outperforms the IP, thereby increasing their potential rewards. It's a dynamic system that adjusts rewards based on real-time market valuations, ensuring that the rewards are always aligned with current market conditions.

• HUB Difficulty

Generation date: 26 Sept 2023

HUB Difficulty Level: 2.4 HDL