"TAN's Inflation Protection Model: Minting, Halving, and Burning for Economic Stability"

Generated by AI AgentCoin World
Monday, Feb 3, 2025 4:01 pm ET1min read
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In the rapidly evolving world of blockchain, maintaining economic stability while encouraging network growth is a significant challenge. Many projects struggle with balancing token supply and demand, leading to inflationary pressures that erode value over time. TAN, however, has introduced a robust Inflation Protection Model designed to sustain its economy, protect investor value, and foster long-term growth.

At the heart of TAN’s strategy are four key pillars that work in harmony to ensure economic sustainability and network resilience:

1.

Minting Supply Through Block Per Reward Mechanism

TAN’s unique Block Per Reward Proof of Stake (BPoS) mechanism allows for a controlled and predictable minting of new tokens. Unlike traditional systems that flood the market with tokens or rely on fixed staking rewards, TAN mints its supply based on actual block creation.

Predictable Supply Over Time: The total token supply is designed to be minted over 80 years, ensuring gradual and sustainable growth.

Incentivized Participation: Validators are rewarded for their contribution to network security, fostering active engagement without compromising the token’s value.

Decentralized Minting Process: By tying minting to block rewards, TAN ensures that new tokens are distributed fairly and transparently, aligning with the network’s decentralized ethos.

2.

Halving Rewards to Create Scarcity

Similar to Bitcoin’s halving model, TAN reduces block rewards at predetermined intervals, approximately every four years. This systematic reduction creates a sense of scarcity, preserving the value of existing tokens and encouraging long-term holding.

Scheduled Halvings: Predictable reward reductions help maintain scarcity while giving validators time to adjust their strategies.

Encouraging Long-Term Commitment: Halving incentivizes participants to stay engaged with the network, knowing that their early involvement yields greater rewards.

3.

Complete Transaction Fee Burning

In contrast to networks that only burn a portion of transaction fees, TAN implements a complete transaction fee burning mechanism. This deflationary approach removes tokens from circulation with every transaction, reducing overall supply and counteracting inflation.

Deflationary Pressure: Continuous burning of transaction fees ensures that the token supply decreases over time, supporting price stability.

Enhanced Token Value: As demand

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