Minter 3: BIP Tokenomics Update

Future Changes Network-Wide

1. Dynamic Mining

A block reward balancer based on the BIP price dynamics over a specific period. For example, if BIP price shows a 10-percent weekly increase, the block reward distributed among delegators goes up. If, however, the price shows a decrease of +10% over said period, the block reward volume goes down. The actual timeframes for monitoring the price of BIP and extent to which the reward is to be increased or decreased will be calculated in detail later.

2. Burning by Balancer

If the price of BIP goes down, it doesn’t slow down the mining of new coins, meaning the deadline for reaching total supply doesn’t change. In this case, undistributed rewards (down to the base value) will be burned via being sent to the 0th address.

3. Auto-Redelegation

Currently, all delegation rewards are sent to addresses of delegators about once every hour. Auto-redelegation will change things in a way that all rewards will be automatically delegated, increasing the stake. To claim rewards, the user will need to make a regular unbond transaction, specifying the number of coins they need.

4. Burning of Transaction Fees

Portion of each transaction fee will be withheld and burned.

5. Burning of Ticker Fees

When creating a new coin or token, the issuer pays the fee that depends on the length of the ticker—the shorter, the cheaper. Instead of being distributed to validators and their delegators, this fee will now be sent to the 0th address and burned, taking the coins out of free circulation.

6. BIP Buyback and In-Pool Liquidity Lock

When swaps are made within liquidity pools, part of the fee is forever locked into the pool (e.g., by transferring LP tokens to the 0th address) or BIP is bought back and later burned.

  1. BIP buyback and burn
  2. Freezing inside the pool

7. Mechanism of Locking Tokens for Set Duration

This mechanism opens up extra opportunities for DeFi services and Minter-powered projects. The ability to lock BIP, HUB, project tokens, and LP tokens in a decentralized way will help services craft attractive lending, farming, and staking products. In turn, this will extract assets from free circulation and freeze them, and in the case of liquidity pools, guarantee stabler trades. For example, a project/service can establish a liquidity pool and lock LP tokens for a specific duration, ensuring that the pool will be liquid for that time.

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Supporting development and adoption of Minter, a digital assets marketplace powered by a fast blockchain. Other social media: minter.org/#follow