Ethanim Ecological Deflation and Inflation Operating Mechanism
Ethanim is a metaverse infrastructure that can support the full decentralization of large-scale applications. It’s technical implementation which is totally different from that of the existing blockchain platforms can enable the large-scale decentralized applications to have comparable performance and use experience with the centralized applications while ensuring security. And it truly achieves eternality to avoid the problems of blockchain completely, such as slow transaction, low concurrency and inability to support large-scale and complex computations. It is a complex technological innovation and an amazing blockchain architecture that will provide complete and powerful underlying support for the metaverse.
Ethanim economic token EPU
EPU is a utility token and unit of value in Ethanim and it is the core of Ethanim’s economic model. The Ethanim blockchain platform and the metaverse applications on top of it are enabled to function properly with EPU, and the ecological value of Ethanim will be expressed by EPU.
There are two components of the Ethanim economic system that can cause deflation, namely, “costs” and “forfeitures”:
The resources that require payment are mainly divided into two parts:
Fees generated from storing the application’s code, files, and data will be paid with $EPU rewards and can also be paid with token rewards provided by the applications and users don’t need to do any payment.
Execution such as transferring money on the main chain, executing smart contracts, running applications by computing nodes, image rendering, etc. will also incur costs, the amount of which is determined by the complexity of the computation and can be paid preferentially by the pending revenues from the user’s participation in staking. The application also can pay on behalf of the users.
Each cost of execution is calculated as a “base cost” and a “burning cost”, with the base cost being paid to the resource provider and the burning cost being permanently destroyed to offset system inflation.
Forfeitures：To maintain the security of the system, proof of challenge is available between Ethanim nodes. As opposed to being rewarded for honest work, if a malicious node is run or dishonestly uses the application, it will be punished and the system will forfeit the staked tokens. The forfeited tokens will be divided into two parts, partly to reward the reporting user and partly to be completely burnt, the ratio will be decided by the community governance vote.
The economy of a sustainable system will continue to grow in size, and EPU, as a utility token, also bears the responsibility of maintaining the stability of the economic system and node rewards, and will necessarily need to meet the demand for an increased number of tokens. Therefore, EPU will predictably enter an inflationary state, but due to the existence of the burning mechanism, when the platform is heavily used, EPU will likely be burnt in large quantities and the system will enter a deflationary state.
But any fixed and rigid economic governance will fail in a changing market, and scientifically flexible governance will provide great help to the stability of the economic system. Therefore, the future amount of EPU increase and the use of allocation will be decided by the community together, with scientific and flexible governance.
Ethanim will launch NFT business in the near future and plan activities for NFT, so stay tuned.
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