Akashic Mining

Storage Economic Model

Storage Economic Model(Mining)

The economic model of encryption protocols coordinates the interests of service providers (miners), service users (users), and token holders. Miners provide computing, bandwidth, and storage resources to the encryption protocol network to ensure its security and availability, for which users pay fees to miners. Miners' income consists of two parts: transaction fees paid directly by users and newly minted tokens distributed to miners by the protocol, known as block rewards. Block rewards are distributed among all token holders according to their holdings and are essentially a form of token inflation tax. In almost all encryption protocol economic models, the main source of miners' revenue is block rewards (token inflation). For example, although Bitcoin has undergone three halvings of block rewards, block rewards still account for 95% of miners' total revenue, while transaction fees only account for 5%. This effectively subsidizes user protocol usage by token holders.

The Akashic protocol generates approximately 52,727 NRG tokens per block on average, with block rewards halving every four years, for a total maximum issuance of 40 billion NRG tokens. This means that after the mainnet goes live, every four years, half of the remaining NRG tokens will be mined, with the first four years mining 20 billion, the second four years mining 10 billion, the third four years mining 5 billion, and so on.

In summary, block inflation is the primary source of revenue for most encryption protocols, such as Bitcoin and Ethereum, which provide miners with block validation compensation in the form of native tokens. The total supply of NRG tokens is 100 billion, with the genesis block of the mainnet generating 60 billion tokens. Similar to Bitcoin, the issuance/block reward design of NRG tokens is declining, eventually reaching 0 as block inflation decreases.

The core contributors to the Akashic network are voluntary miners who are motivated by revenue to permanently store data. Miners' income comes mainly from two sources: network fees and block rewards/block inflation.

On the other hand, NRG, like ETH, is a utility token. It is mainly used for two purposes: users pay storage fees and it serves as a block reward for miners. As the demand for Akashic storage increases, the utility value of NRG tokens increases, while the circulation of NRG tokens decreases due to the large proportion of NRG tokens in transaction fees being deposited into a donation pool. As mentioned in the article by Mr. Liu Yi, the characteristics of low issuance and rapid decay of issuance speed make NRG tokens have typical characteristics of sound currency scarcity, similar to BTC, and therefore also the most holder-friendly token.

Investors in the Akashic ecosystem (i.e., NRG holders) are not the drivers of the ecosystem but passive holders. Holders cannot earn rewards by providing currency supply, i.e., by staking.

Energy is the native coin

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