πŸ’°Tokenomics

MLH's tokenomics model aims to create a sustainable, value-stable ecosystem, balancing supply and demand through innovative mechanism design while providing long-term value for all participants.

Token Supply and Distribution πŸ“Š

  • Distribution Mechanism:

    • Initial Liquidity: Created at a ratio of 10MLH:0.5S for initial liquidity pool.

    • Launch Round: Distributed to launch round participants at a ratio of 10MLH:1S.

    • Regular Cycles: Based on launch round MLH distribution, decreasing by 0.5% each cycle.

    • No Pre-mine: No token pre-allocation to project team, developers, or any other parties.

  • Production Mechanism: New MLH tokens are generated through Power mining, with gradually decreasing issuance per cycle.

Deflationary Mechanism πŸ“‰

MLH employs multiple deflationary mechanisms designed to increase token scarcity and value over time:

  1. Automatic Liquidity Pool Burning:

    • Automatically burns 0.25% of MLH tokens in the liquidity pool every 30 minutes.

    • This mechanism continuously reduces token supply, increasing scarcity.

  2. Reward Decay:

    • Mining rewards decrease by 0.5% each cycle, limiting new token supply growth rate.

Fee Structure and Distribution πŸ’΅

MLH's fee structure is designed to support project sustainability and value creation: fee structure is designed to support the project's sustainable development and value creation:

  1. Mining Fee (S) Distribution:

    • 42% enters 8-day reward pool for stakers.

    • 50% used for token buyback and liquidity addition, increasing token scarcity. If liquidity pool token amount falls below 5% of total supply, protocol automatically mints corresponding tokens to the liquidity pool.

    • 8% allocated to project team for continued development and operations.

  2. Zero Transaction Fees:

    • No additional fees on MLH token transactions, encouraging liquidity and usage.

Value Capture Mechanism πŸ“ˆ

  1. Staking Rewards:

    • Users can stake MLH tokens to earn mining fees (S), encouraging long-term holding.

    • Rewards sourced from 8-day pool, supplied by mining fees.

  2. Auto-compounding:

    • Unclaimed mining rewards automatically considered staked, generating compound effects.

Economic Model Sustainability 🌳

  • Dynamic Adjustment: System dynamically adjusts mining difficulty and rewards based on market conditions and participation to maintain long-term balance.

  • Long-term Incentives: Encourages long-term ecosystem participation through staking mechanism and holding rewards.

  • Value Lock: Project effectively captures and locks value through continuous buyback and burn mechanisms.

Through this carefully designed tokenomics model, the MLH project aims to create a self-sustaining, value-growing ecosystem that provides long-term economic incentives and value returns for all participants.

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