Welcome to the pages of our blog! Today’s article is devoted to the issue of emission model. Let’s talk about the general ideology and regulation of the GONT currency emission. We will also talk about the GDP of GONT economy and smart contracts.
Before proceeding to the description of the GONT emission model, we should answer the question: what distinguishes Ethereum from Bitcoin? The main difference is that Ethereum has no emission limit!
Consequently, in this case we have two types of emission: positive and negative (the currency is burned).
Model for GONT
GONT also has no emission limit, but emission must be regulated.
Let’s introduce some concepts:
- Primary GONT economics
— indicators of primary GONT activity, for example, generation of gVM cores for maintenance of services. But the generation of gVM does not mean that the service has users. Service users are displayed in terms of the real GONT economy.
Primary indicators show investors a general warm-up of the economy (the number of heated and potential customers). Primary economy – as an application for the use of real economy.
- The real GONT economy
— indicators for service launches and service gas consumption. This directly affects GDP and emissions.
All objects of the GONT economy are regulated by smart contracts.
Example of currency regulation by smart contracts and audit of contracts:
- GCB – GONT Central bank (central bank contract).
- SH – Stack holder – miners, who hold some amount of currency.
Theoretically, as usual, anyone can become a miner. There will be only requirements to the quality of mining services. For example, at the data center level and not lower.
The general ideology of emission
The emission cycle (positive or negative) is one week. In fact, this is a cycle of basic statistics on gas consumption throughout the GONT system.
The emission is calculated proceeding from the forecast of growth of demand for service gas for a week ahead. The forecast is built automatically from the data of the previous weeks (one of the models). It is assumed that there is a continuous increase in users and services to the system.
Automatic feedback and regulation of emissions
The main question is how to burn GONT currency, if the demand for gas has decreased?
Obviously, the miners will not be interested in voluntarily burning the currency.
Our main goal: to maintain the regulation of the amount of currency = the amount of service.
In this case, GONT currency can always be sold on the exchange at a more or less stable price in FIAT.
If the currency is less – there is a shortage of gas demand. There will be no possibility to pay for transactions.
If the amount of currency is larger, there is a deficit demand for dollars (FIAT).
Users will have problems with the output of the cryptocurrency, which can give rise to avalanche effects of currency reset and even panic.
The ideal balance of the whole system is work without a stock exchange, but through a guaranteed GONT-FIAT exchange. Which at a fixed price (binding to the price of electricity) guarantees an exchange in any direction! The exchange can correct the “jambs” of the system balance.
The GONT model of the central bank and negative emissions.
Let’s return to the main question – how to guarantee the “burning” of the currency with the fall in demand for service gas?
GCB (bank contract) is the only source of emission and it distributes the SH currency for the work done (on hosting and mining). But the currency is distributed not just so, but for a conditional loan at a conditional “refinancing rate.” The refinancing rate is needed to withdraw currency from miners for potential combustion. However, the mechanism is encouraging. The withdrawal is made automatically (at the “refinancing rate”) at the time of paying the rewards to the miners in a special reserve fund.
If the gas consumption throughout the GONT continues to grow, then the currency is not needed to burn and it is returned to the miners on the next cycle (full promotion of the miner with the growth of the economy).
If the gas consumption drops, the Reserve Fund is burned by the system.
PoS economy GONT
- Pre-GAS economy (primary) – generation of the GONT cores.
- Post-GAS economy (real) – generation of work of cores in services.
GDP of GONT economics
Key parameters of GONT GDP:
- Total gas consumption throughout the GONT economy. And also calibration of gas flow in Joules and transformation into FIAT cost.
- Number of service launches.
At the same time, any GONT participant can independently verify the gas consumption (based on the records in the BC).
If the WoW gas consumption (from week to week) does not change, then the issue will be zero.
Here you can think about the minimum amount of emissions needed to compensate the miners for the costs of maintaining the system.
Thank you for attention! Good luck!