Ecosphere
  • Introduction
  • Elevator Pitch
  • Pitch Deck
  • Lean Model Canvas
  • OVERVIEW
    • Mission
    • Problem Statement
    • Ecosphere Prime Solution
    • Benefits
    • Value Proposition
    • Use Cases By Industry
    • Achieving Net Zero
    • Technology Platform
    • "Waze For Weather"
    • Strategic Roadmap
  • Technology
    • Climate Intelligence Network
    • Climate Nodes
      • Prototype
      • Device Mockup
      • Device Setup
      • Node Location Planning
      • Node Explorer
    • Smart Nodes On Hedera
      • Web3
      • Smart Nodes Vs Smart Contracts
    • DIDs and Verifiable Credentials
    • Peer-to Peer Data Sharing
      • How We Use Hedera
      • Hedera Topics
      • Data Tokenization
      • Data Sharing
    • Decentralized Identity
    • Micro Royalties
    • Fractional Ownership
    • Integration
      • Climate Data Workbench
      • API
    • AI Forecasting
  • Functional Flows
    • Registering A New User
    • Registering A New Node
    • Data Collection From Nodes
    • Data Tokenization
    • Data Sharing
    • AI and DLT
    • Marketplace
    • Fractional Ownership
  • Community Product
    • Product Community Fit
    • Product Vision
    • Minimum Viable Product App
    • Wireframe
      • Onboarding
      • Walkthrough Tutorials
      • Wallet Creation
      • Location List
      • Weather Information
      • Location Options and Support
      • Timelapses
      • Animations
      • Weather Station Setup
      • Search and Explore
      • Settings
      • Sharing and Notifications
    • Style Guide
    • Visual Design Elements
    • Usernames Feature
  • Commercial Product
    • Sector Focus
    • Product Market Fit
    • Comprehensive Reporting and Dashboards
    • Climate Data Oracle
    • Go-To-Market
    • Competition
  • Tokenomics
    • Revenue Drivers
    • $PRIME Token
    • Value Capture Mechanism
    • Reward Structure
    • Locale Coverage
    • Nodes For Public Good
  • Community
    • Whitepaper
    • Public Good
    • Joining Ecosphere
    • Governance
    • Awareness
    • Disaster Readiness
    • Early Warning System
    • Socials
  • Project Developer
    • About
    • Team
    • Funding
    • Testnet Accounts
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On this page
  • Dynamic Minting
  • Dynamic Burning
  1. Tokenomics

Value Capture Mechanism

Previous$PRIME TokenNextReward Structure

Last updated 6 months ago

Dynamic Minting

In the Ecosphere network, token minting incentivizes supplier participation. Unlike static minting models which define a fixed minting schedule before launching the economy, the dynamic minting model is adaptive and state-dependent such that the amount of tokens to be minted is determined by the growth in the supply network’s value. A dynamic minting model ensures that the token’s circulating supply is perpetually commensurate with the actual value generated by supply-side network activities.

Climate Nodes, acting as primary suppliers within the network, are rewarded with newly minted tokens in each epoch. The quantity of tokens received is directly proportional to the volume of data they contribute to the climate forecasting models.

When a supplier earns a reward, new tokens are minted in accordance to the respective reward function, and disbursed to the supplier. The circulating supply increases by this amount.

When more Climate Nodes are onboarded to the Ecosphere network , this represents a growth in the supply side of the network. A growth in the supply side is always accompanied with a equivalent volume of minting.

Dynamic Burning

A burning policy is employed so as to capture the value generated due to Ecosphere network demand and product usage. Mechanistically, it drives deflation of the $PRIME token and increases its unit value in relation to the demand. Note that the inflationary dynamics still remain dominant, so the system overall remains inflationary.

Revenue earned from climate data subscriptions will be used to buy back $PRIME tokens from the secondary market and those tokens will be burned.