Incentive Mechanism (Burn and Mint Equilibrium - BME)

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

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

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

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

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

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

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