$BURGER Token Inflation Mechanism

3 min read4 days ago

New Tokenomics Voting Results: Balanced Model Takes the Lead! 🚀

After widespread participation and active voting from the community, the Balanced Model has emerged as the top choice among all proposed options. This result reflects the high engagement and dedication of our community members, guiding the future direction of our project.

🔽 Scroll down for details of the economic model!

Background

Initially, the total supply of BURGER tokens was limited to 63 million. Although there was an intended mechanism to allow for inflation beyond this cap, the specific methodology remained undefined. With the recent update in business direction, the new inflation tokens will be directly linked to future business activities. This strategy not only safeguards the interests of existing token holders but also introduces new potential revenue streams and token benefits. The approach shifts from a solely Proof of Stake (PoS) and decentralized finance (DeFi) model to a hybrid model incorporating both Proof of Stake (PoS) and Proof of Work (PoW) mechanisms, thereby promoting moderate and sustainable business growth.

Design Principles

1. Economic Foundations:

The inflation rate is tied to real economic growth.
Market supply and demand balance is taken into account.
An automatic adjustment mechanism is introduced.

2. Positive Incentives:

Revenue growth drives higher inflation rates, fueling ecosystem development.
Increasing computational power scale brings more incentives, supporting infrastructure development.
A positive correlation between revenue and computational power creates a virtuous cycle.

3. Negative Adjustments:

Rising token prices lower the inflation rate to prevent overheating.
A logarithmic function is used to handle price impacts, avoiding excessive volatility.
The denominator design ensures that the inflation rate remains within a reasonable range.

Design Philosophy

We have devised an intelligent inflation adjustment mechanism that automatically modifies the inflation rate based on the platform’s development status to ensure:

Sufficient incentives during periods of rapid growth
Automatic reduction of inflation in overheated markets
Maintenance of basic incentives during market downturns

Annual Inflation Range

(Based on the community vote, the final result is confirmed. Voting link: https://snapshot.box/#/s:burgercities.eth/proposal/0xb277e970e59277c27bed767b54a3fbe24e8b0f5a719a60c0c8b60edca0d925eb)

Base Inflation Rate: 6%
Maximum Inflation Rate: 12%
Dynamic Adjustment: Automatically adjusts based on platform revenue, computational power scale, and market conditions

Detailed Inflation Mechanism

Inflation Formula: y = 0.06 + (k1·a·b — k2·log(c))/(α·(1 + β·a·b — γ·log(c)))

a. Basic Structure:

0.06: Represents a base inflation rate of 6%
Numerator (k1·a·b — k2·log(c)): Determines the direction of inflation adjustment
Denominator (α·(1 + β·a·b — γ·log(c))): Controls the magnitude of changes

b. Core Variables:

a: Platform revenue indicator (current month revenue / benchmark revenue)
b: Computational power scale indicator (current computational power / benchmark computational power)
c: Token price indicator (current price / benchmark price)

c. Adjustment Parameters:

k1: Weight of revenue and computational power influence (0.2–0.4)
k2: Weight of price influence (0.05–0.1)
α: Basic adjustment parameter (1.5)
β: Revenue-computational power linkage coefficient (0.2)
γ: Price suppression coefficient (0.1)

Moving forward, we will continue to monitor market trends and technological advancements, adjusting our strategies accordingly to stay at the forefront of the industry. With the collective efforts of our community, we believe BurgerCities will achieve its vision and become a leader in AI and Web3.

BurgerCities aims to create a unified and standardized metaverse world of Web3 via integrating DeFi, NFT into the wider Metaverse. In this world, users could carry out daily events such as social, gaming, etc. Meanwhile, they could experience DeFi and NFT functions with their own avatars such as trading, staking, NFT exhibitions or gamefi, etc.

BurgerCities hopes to contribute fresh energy to the booming metaverse and bring new vigor and vitality into Web3 applications such as DeFi and NFT.

Visit BurgerCities — https://burgercities.org/

Twitter: https://twitter.com/BurgerCitiesBar

Telegram: https://t.me/burgercities

Medium: https://burgercities.medium.com/

Discord: https://discord.gg/zdT9PCW5jb

CoinMarketCap:https://coinmarketcap.com/currencies/burger-cities/

SI aims to leverage advanced AI technologies and a comprehensive market to enable enterprises to achieve unprecedented productivity and innovation. By seamlessly integrating advanced AI models, intelligent computing resources, and robust cloud infrastructure, we aim to set the gold standard for efficiency and excellence in the Web — 3 era.

Our commitment is to provide unparalleled solutions that drive the success of enterprises and individuals, transforming the landscape of mining and AI-driven development.

Find us:

Website: https://si.online/
X: https://x.com/Si_Protocol
Discord: https://discord.gg/siprotocol
Telegram Announcement: https://t.me/Si_Protocol
Telegram Community: https://t.me/SiProtocol
Medium: https://medium.com/@Si_Protocol
YouTube: https://www.youtube.com/@Si_Protocol