Emission

Dynamic emission curve

The BRRR token is emitted for every successfully processed and validated transaction in the accounting chain. The network validators confirm transactions using their stake in BRRR tokens.

The BRRR token is emitted based on a dynamic issuance model. The issuance model adjusts the minting curve according to system usage. The emission schedule is bound by two parameters: processed transactions (activity) and elapsed time (operational time). Parameters can be dynamically adjusted, but the default ones are as follows:

  • BRRR emission parameters

    • Transactions target, TtrT_{tr}1,000,000,000
    • Incentives lifespan, LL10 years
    • Incentives total supply, PsP_s30%
    • MoM decrease percent, DMoMD_{MoM}5.6%

Amount of tokens to mint as incentives is:

Sincv=Smax⋅Ps=300,000,000S_{incv} = S_{max} \cdot P_s = 300{,}000{,}000

Mint target portion for month i compared to month 1 (assumed as 1.0):

Pi=(100−DMoM100)i−1P_i = \left(\frac{100 - D_{MoM}}{100}\right)^{i-1}

Total portions:

∑i=1120Pi\displaystyle \sum_{i=1}^{120} P_i

The target amount of tokens to mint in a particular month is:

Mitarget=Sincv⋅Pi∑j=1120(100−DMoM100)j−1M^{target}_i = S_{incv} \cdot \frac{P_i}{\sum_{j=1}^{120} \left(\frac{100 - D_{MoM}}{100}\right)^{j-1}}

Tap on the image to expand

The target amount means that the mint (emission) rewards depend on the key metric – transaction activity. BRRR emission schedule is designed to target the first one billion transactions over the first ten operation years. The first tokens to be distributed in the first epoch mark (set) the base target. In every following epoch if the transaction target is not reached – fewer tokens are distributed. It allows for more tokens to be minted for the same amount of transactions in the following epoch. The idea is similar to the Bitcoin network’s difficulty adjustment process.

However, it is not the block time that is tracked as a constant but an emission curve target. A parameter DMoM=5.6%D_{MoM} = 5.6\% value roughly results in 1/2 of the monthly token minting target after the first 12 months (similar to the so-called "the halving").

Tap on the image to expand