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.