# 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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