TLDR:  

• Regardless of how the block time and mortgage rate change, the constant annual reward is441 million ONE tokens。

• As the platform gradually enters the application stage, the transaction fee offsets the additional issuance, makingbecome possible.become possible.

• First Year Yield Range:164% (5% collateralization rate) to 9% (95% collateralization rate)。

• For more details, check out ourimage description。

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Why aim for a higher mortgage rate?

A higher mortgage ratio has more benefits in the following two aspects. First of all, the mortgage rate can be said to be a barometer of the health of the PoS chain. A high collateralization ratio (over 60%) means the network is highly secure, as a 33% attack would require at least 20% of the token supply. Just as importantly, a high collateralization ratio means the project has a long-term loyal community behind it. If 60% or more of the tokens are bonded in the collateral contract, that means the majority of the tokens belong to the holders.

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Why is simplicity important?

Bitcoin demonstrates the power of simplicity. The economic model is so simple that you can even sum it up in one sentence: "Issuance is halved every 4 years until it reaches a maximum supply of 21 million." The simplicity of Bitcoin's economic model allows people to understand it quickly, so the new It's also easy for community members to get started. The easier a model is to understand, the easier it is to disseminate. Conversely, the more complex the economic model, the less likely it is that the protocol will enter mass adoption.

Therefore, we strive to create an economic model that can also be summed up in one sentence. Here's ours:

"Increased issuance plus transaction fees are fixed at 441 million ONE tokens per year."

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transaction fee

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Harmony’s new token issuance is steady at ~3%, which is lower than Bitcoin’s current inflation rate of ~4% at the time of writing. Issuance could drop to 0% as platform enters adoption and transaction fees offset new token issuance

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Differences from Legacy Economic Models

You might be wondering what this new model has to do withold modelimage description

Red is the new model, blue is the old model. The new model yields about 4% higher than the old model, and at some point about 100% higher than before.

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Why did we change the economic model?

We changed the model because the assumptions and judgments on which the original model was based changed. As John Maynard Keynes said: "When the facts change, I change my mind with them. And you?

Initially, we wanted to keep issuance as low as possible while maintaining a modest level of security, so inflation would be kept to a minimum. However, we later realized that the potential harm from inflation would be trivial compared to the benefits of building a strong validator and staker community in the early stages of the network.

Additionally, we realized that we could inflate long-term by using transaction fees to offset issuance. Therefore, we think it is worthwhile to increase the amount of additional issuance.

Another assumption in the old model is that staking is inherently competitive in collateralized application scenarios, such as DeFi. We were hoping to reduce the collateralization rate in order to maintain some circulation for these applications. Later, the new concept of "collateralized derivatives" was born, which is expected to eliminate this contradiction, because it will allow derivatives to represent tokens to be used as collateral for collateral.

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The above are some members of our global validator community. come on ourTelegram channelfirst level title

join the community

If you would like to learn more about our economic model, we encourage you to view our spreadsheet linked above and joinOur subredditdiscussion. If you are a validator or delegator and would like to understand how this new economic model affects your rate of return, we will create a staking calculator for you so that you can explore the benefits of different scenarios.

Want to stake on the first ever state-sharded PoS blockchain? Join our Pangea testnet and get ready for our public staking together. You can run a node, earn rewards and make history with us! Also welcome to ourPangea Volunteer Telegram Channel, our community kols will go all out to help you solve any problems you encounter.