> For the complete documentation index, see [llms.txt](https://blendr-network.gitbook.io/blendr-network-technical-plan/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://blendr-network.gitbook.io/blendr-network-technical-plan/blendrs-decentralized-architecture/incentive-mechanism-burn-and-mint-equilibrium-bme.md).

# 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.