Starting today, we will use a series of articles with examples to let everyone better understand the principles and practical operations of Coinversation Protocol.

First, let me introduce the liquidity mining of Coinversation Protocol.

There are two main purposes for setting up liquidity mining: 1. CTO distribution; 2. To provide liquidity for the forging of synthetic assets. Therefore, we stipulate that users who participate in liquidity mining must also participate in the forging of synthetic assets, and the tokens participating in the forging of synthetic assets must be at least 1/4 of the tokens participating in liquidity mining. At the same time, we also stipulate that at least 20% of the CTO obtained by users through mining will participate in liquidity mining.

Currently, liquidity mining supports two tokens, CTO and DOT, for mining. CTO gets 75% of the output (tentative), and DOT gets 25% (tentative). Liquidity mining output is halved every 4 years, and 25 million CTOs are produced linearly over time from the first to fourth year.

The following is a specific case of participating in Coinversation Protocol liquidity mining.

Assuming that in the first year of the project's launch, there are currently 10 million CTOs and 1 million DOTs that all users participate in liquidity mining pledges. Because there are a total of 25 million CTOs produced by mining in the first to fourth years, so 25 million / (4*365) = 17123 per day. Pledge CTO to get 75% of the output, 17123*0.75=12842 per day, DOT gets 25%, 117123*0.25=4281 per day.

Therefore, under this condition, staking each CTO can get 0.0012842 newly generated CTOs every day, and staking each DOT can get 0.004281 newly generated CTOs every day.

If one user A pledges 10,000 CTOs, he can obtain 10,000 * 0.0012842 = 12.842 newly generated CTOs through liquidity mining every day.

At the same time, according to the rules, user A needs to mortgage at least 2,500 tokens (that is, 1/4 of 10,000 tokens) for the forging of synthetic assets, that is, user A needs at least 12,500 tokens to participate in this project. Of the 12.842 CTOs obtained every day, 20%, or 2.5684, also need to be used for the forging of synthetic assets, and the remaining 80%, or 10.2736 user A, can be freely disposed of.