Revenue-based Minting Algorithm
Last updated
Last updated
To prevent over-minting and ensure a healthy token supply, Dolphin.fm uses a quantitative model to decide and control the number of newly minted tokens. The model adjusts the minting rate based on revenue generation, ensuring that token issuance aligns with platform growth and demand.
Token Mint Algorithm:
where y is the number of tokens to mint, a and b are parameters in the current model with
The minting rate declines exponentially over time, reflecting the following considerations:
Limitation of Total Supply: To maintain scarcity and value.
Benefits for Early System Contributors: Rewarding early adopters and contributors to the system.
Increase in Market Participants: Accounting for the growing number of participants and the increasing difficulty of token acquisition.
This approach models the growing difficulty of mining and the rise in the number of participants, ensuring a balanced and sustainable token supply that aligns with Dolphin.fm's long-term goals and market dynamics.