Content to Earn

Our platform employs an advanced dynamic halving mechanism to sustainably manage token rewards. This adaptive system adjusts user rewards based on the current health of the reward pool, ensuring long-term balance and aligning incentives with network growth.

Overview

• Reward Pool: The total pool starts at 100 billion TOK, securely held in a Cosmos-SDK module account.

• Initial Reward: Users initially earn 100 TOK per action (e.g., posting a comment).

• Dynamic Adjustment: As rewards are issued, the pool balance declines. Once the balance drops below predetermined thresholds, the reward rate is automatically halved to conserve tokens. Additionally, advertising fees—paid in TOK and funneled back into the pool—can replenish the balance and even reverse previous halvings, allowing the system to stabilize over time.

Halving Threshold Dynamics

We define the halving threshold using the formula:

$$T(n)=S×(12)nT(n) = S \times \left(\frac{1}{2}\right)^nT(n)=S×(21​)n$$

Where:

• $SSS$ is the initial reward pool (100 billion TOK)

• $nnn$ is the number of halving events that have occurred

Examples

• First Halving: When the pool balance falls below:

  $$T(1)=100 billion×12=50 billion TOKT(1) = 100\,\text{billion} \times \frac{1}{2} = 50\,\text{billion} \,\text{TOK}T(1)=100billion×21​=50billionTOK$$
• Second Halving: When the balance drops below:

  $$T(2)=100 billion×(12)2=25 billion TOKT(2) = 100\,\text{billion} \times \left(\frac{1}{2}\right)^2 = 25\,\text{billion} \,\text{TOK}T(2)=100billion×(21​)2=25billionTOK$$
• Third Halving: When the balance falls below:

  $$T(3)=100 billion×(12)3=12.5 billion TOKT(3) = 100\,\text{billion} \times \left(\frac{1}{2}\right)^3 = 12.5\,\text{billion} \,\text{TOK}T(3)=100billion×(21​)3=12.5billionTOK$$

Adjusting Rewards per Action

If the initial reward per action is $R0R_0R0​$ (e.g., 100 TOK), then after $nnn$ halving events, the reward is determined by:

$$R(n)=R0×(12)nR(n) = R_0 \times \left(\frac{1}{2}\right)^nR(n)=R0​×(21​)n$$

Examples

• Before Any Halving (n = 0):

  $$R(0)=100 TOKR(0) = 100\,\text{TOK}R(0)=100TOK$$
• After First Halving (n = 1):

  $$R(1)=100×12=50 TOKR(1) = 100 \times \frac{1}{2} = 50\,\text{TOK}R(1)=100×21​=50TOK$$
• After Second Halving (n = 2):

  $$R(2)=100×(12)2=25 TOKR(2) = 100 \times \left(\frac{1}{2}\right)^2 = 25\,\text{TOK}R(2)=100×(21​)2=25TOK$$

Cooling Mechanism

To prevent rapid or oscillatory halving events caused by short-term fluctuations in the reward pool balance, a cooling period is implemented. After each halving event, a 2-week (14-day) cooling period is enforced before any subsequent halving can be triggered. This cooling mechanism helps stabilize the system by allowing time for the reward pool to recover through advertising income and other inflows.

Adaptive & Reversible Halving

The system is designed to be both dynamic and reversible:

• Halving Events: Rewards are automatically halved when the reward pool balance falls below the specified thresholds. This adjustment ensures that token outflow is moderated during periods of heavy distribution.

• Reversal Capability: As advertising fees are deposited back into the pool, the balance may recover beyond a previously triggered threshold. In such cases, the system is capable of reversing the halved state, thereby restoring a higher reward rate. This flexibility allows the mechanism to balance rewards with income, ensuring a resilient and sustainable token economy.

By continuously balancing reward outflows with advertising income and incorporating a cooling period, our dynamic halving mechanism protects the integrity of the reward pool while incentivizing high-quality, consistent content creation.