Incentive Mechanism (Burn and Mint Equilibrium - BME)

The BME may adjust the token supply to stabilize the economy, which could be represented as

Define T(t)T(t) as the total supply of tokens at time tt. When a task is completed, burn a fraction ϕ \phi  of the task's cost from the total supply and mint new tokens MM based on network activity A(t)A(t):

T(t+1)=T(t)ϕCost(task)+M(A(t)) T(t + 1) = T(t) - \phi \cdot \text{Cost}(task) + M(A(t)) 

Where M(A(t)) M(A(t))  is a function that determines the number of new tokens to mint based on network usage metrics.