Mint=Burn TLM

Mint = Burn TLM

The Mint=Burn Token Logic Module (TLM) is, theoretically, the only TLM necessary once the network reaches maturity in the far future.

It is the transfer of tokens from the applications to the suppliers based on the amount of work received and provided respectively.

Introduction

The number of tokens burnt from the Application module is equal to the number of tokens minted across all protocol participants.

The minted tokens are distributed according to the MintEqualsBurnClaimDistribution parameters to suppliers, proposers, service source owners, and the DAO.

(Token flow overview:)

• Application Operation: BURN CSA tokens

• Application Keeper / Application Address

• Token Logic Module: Mint=Burn Mechanism

• Tokenomics Module (MintEqualsBurnClaimDistribution)

• Tokenomics Keeper: Claim Settlement Amount (CSA)

• Distribution Allocations:

  • DAO Treasury — Distribution (X%)

  • Block Proposer — Distribution (Y%)

  • Supplier — Distribution (Z%)

  • Source Owner — Distribution (W%)

• Result: INCREASE Balance for recipients; REDUCE Stake by SA amount; Token Value returned to Application Module

Example Distribution

Assume the application pays 10 POKT for 10 relays.

The POKT would be distributed as follows:

• DAO: 1 POKT (10% of 10 POKT)

• Proposer: 0.5 POKT (5% of 10 POKT)

• Supplier: 7 POKT (70% of 10 POKT)

• Source Owner: 1.5 POKT (15% of 10 POKT)

• Application: 0 POKT (0% of 10 POKT)

MintEqualsBurnClaimDistribution Parameters

The MintEqualsBurnClaimDistribution parameters control how the settlement amount is distributed across different network participants:

• dao: Percentage of settlement amount sent to the DAO reward address

• proposer: Percentage of settlement amount sent to the block proposer (validator)

• supplier: Percentage of settlement amount sent to suppliers (distributed among revenue shareholders)

• source_owner: Percentage of settlement amount sent to the service source owner

• application: Percentage of settlement amount that remains with the application (typically 0 for mint=burn)

These percentages must sum to 1.0 (100%) to ensure all settlement tokens are properly distributed.

For reference:

• Introduction: https://dev.poktroll.com/protocol/tokenomics/token_logic_modules_mint_equal_burn#introduction

• Example Distribution: https://dev.poktroll.com/protocol/tokenomics/token_logic_modules_mint_equal_burn#example-distribution

• MintEqualsBurnClaimDistribution Parameters: https://dev.poktroll.com/protocol/tokenomics/token_logic_modules_mint_equal_burn#mintequalsburnclaimdistribution-parameters