Token Supply Adjustment Mechanisms

Burn Mechanism Details

Regular Burn Events:

  • Monthly public burn events

  • Transparent display of burn statistics and impact for each event

Condition-Triggered Burns:

  • Additional 5% of sales revenue burned when token price drops more than 25%

  • Dynamic burn ratio adjustments based on community voting

Registration Fee Burns:

  • 50% of device registration fees directly burned

  • Burns sent to permanent burn address

Total Supply Reduction Forecast

Period
Cumulative Burns
Remaining Supply
Market Cap Impact

Month 3

2,000,000

998,000,000

+0.4%

Month 6

6,000,000

994,000,000

+1.2%

Month 9

12,000,000

988,000,000

+2.4%

Month 12

20,000,000

980,000,000

+4.0%

Economic Model Sustainability

Reward and Revenue Balance

By limiting the daily reward pool to a fixed percentage of the previous day's RWA sales revenue, the design inherently ensures rewards never exceed sales:

  • Daily reward pool cap is set at 50% of the previous day's sales revenue (converted to AFI) or the annual allocation limit, whichever is smaller

  • Example: With sales revenue of 36,400 USDT and 50% reward ratio, the pool would be AFI equivalent to 18,200 USDT, less than total sales revenue

Mining Reward Emission Schedule

To ensure long-term sustainability of the 400 million AFI device income mapping pool, the following emission schedule has been implemented:

Year
Pool Allocation
Total AFI
Daily Maximum Mining Output

Year 1

30%

120,000,000

328,767 AFI

Year 2

25%

100,000,000

273,973 AFI

Year 3

20%

80,000,000

219,178 AFI

Year 4

15%

60,000,000

164,384 AFI

Year 5

5%*

20,000,000

54,795 AFI

Year 6

2.5%*

10,000,000

27,397 AFI

Year 7

1.25%*

5,000,000

13,699 AFI

Year 8

0.625%*

2,500,000

6,849 AFI

Year 9

0.3125%*

1,250,000

3,425 AFI

*Year 5 and beyond: The remaining 10% (40 million AFI) halves each year, following a similar emission curve to Bitcoin

Long-Term Emission Control Benefits

This carefully structured emission schedule creates several strategic advantages for the ecosystem:

  1. Extended Reward Period: The halving mechanism extends mining rewards over many years, ensuring continuous incentives for network participation.

  2. Supply Predictability: Participants can forecast token emission with high accuracy, supporting long-term investment planning.

  3. Scarcity Enhancement: Decreasing emission combined with active burn mechanisms creates progressive token scarcity.

  4. Sustainable Growth: Balanced reward reduction prevents early supply exhaustion while maintaining competitive mining returns.

  5. Value Preservation: The combination of controlled emission and active burning creates fundamental support for token value.

The mining reward emission schedule works in tandem with burn mechanisms to create a deflationary token model with predictable supply constraints, designed to support long-term ecosystem health and token appreciation.

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