TOS Tokenomics

TOS Network’s tokenomics are designed around the core principle of “Don’t Trust, Verify it” - every aspect of our token economics is mathematically verifiable and transparent to all network participants.

Token Overview

Basic Information

Token Utility

• Transaction Fees: Pay for network operations
• Mining Rewards: Incentivize network security
• Energy Staking: Enable gas-free transactions
• Smart Contract Gas: Execute decentralized applications
• Governance: Participate in network decisions

Supply Mechanics

Emission Schedule

TOS follows a carefully designed emission curve to ensure long-term sustainability:

Total Supply: 21,000,000 TOS
Initial Block Reward: 50 TOS
Halving Interval: Every 210,000 blocks (~36.5 days)
Mining Algorithm: TOS-Hash + AI-Mining

Block Reward Structure

pub fn calculate_block_reward(block_height: u64) -> u64 {
    const INITIAL_REWARD: u64 = 50_000_000_000; // 50 TOS in atomic units
    const HALVING_INTERVAL: u64 = 210_000;
 
    let halvings = block_height / HALVING_INTERVAL;
 
    if halvings >= 64 {
        return 0; // No more rewards after 64 halvings
    }
 
    INITIAL_REWARD >> halvings
}

Reward Distribution

Each block reward is distributed as follows:

• 80% - Block Miner (Traditional or AI-Mining)
• 15% - Network Development Fund
• 5% - Community Treasury

AI-Mining Economics

Dual Reward System

TOS Network supports both traditional mining and AI-Mining with balanced incentives:

AI-Mining Bonus Structure

def calculate_ai_mining_reward(base_reward, quality_score, innovation_score):
    """
    Calculate AI-Mining reward based on work quality
 
    Args:
        base_reward: Standard mining reward
        quality_score: Work quality (0.0 to 1.0)
        innovation_score: Innovation metric (0.0 to 1.0)
 
    Returns:
        Total reward including quality bonuses
    """
    quality_bonus = base_reward * (quality_score * 0.1)  # Up to 10% bonus
    innovation_bonus = base_reward * (innovation_score * 0.05)  # Up to 5% bonus
 
    return base_reward + quality_bonus + innovation_bonus

Supply Distribution Forecast

Year-by-Year Projection

Long-term Supply Curve

TOS Supply Growth (Asymptotic to 21M):

Year 1-2:   Rapid growth (bootstrap phase)
Year 3-5:   Moderate growth (stability phase)
Year 6-10:  Slow growth (maturity phase)
Year 10+:   Minimal growth (deflationary phase)

Final supply approaches but never exceeds 21,000,000 TOS

Energy Model Integration

Staking Mechanics

Users can stake TOS tokens to generate “Energy” for gas-free transactions:

Energy Economics

pub struct EnergyStaking {
    pub staked_amount: u64,      // TOS tokens staked
    pub energy_rate: f64,        // Energy generation per hour
    pub lock_period: u32,        // Days locked
    pub bonus_multiplier: f64,   // Bonus for longer locks
}
 
impl EnergyStaking {
    pub fn calculate_energy_generation(&self) -> u64 {
        let base_energy = (self.staked_amount as f64 * self.energy_rate) as u64;
        (base_energy as f64 * self.bonus_multiplier) as u64
    }
}

Network Value Accrual

Revenue Streams

TOS Network generates value through multiple mechanisms:

• Transaction Fees: Direct network usage
• Smart Contract Execution: DApp ecosystem growth
• AI-Mining Services: Productive work marketplace
• Cross-chain Operations: Interoperability features
• Privacy Services: Confidential transaction premiums

Token Burn Mechanisms

Quarterly Burns (Starting Year 2):

• 25% of transaction fees burned
• 10% of smart contract gas burned
• 5% of AI-mining service fees burned

def calculate_quarterly_burn(quarter_data):
    """Calculate tokens to be burned each quarter"""
    transaction_burn = quarter_data['transaction_fees'] * 0.25
    smart_contract_burn = quarter_data['smart_contract_gas'] * 0.10
    ai_mining_burn = quarter_data['ai_mining_fees'] * 0.05
 
    total_burn = transaction_burn + smart_contract_burn + ai_mining_burn
    return min(total_burn, quarter_data['max_burn_limit'])

Economic Security Model

Network Security Budget

Annual Security Budget = Block Rewards + Transaction Fees
Target Security Ratio = 2-3% of Market Cap
Minimum Hashrate Requirement = 1 PH/s

Attack Cost Analysis

Governance Token Features

Voting Power

pub fn calculate_voting_power(
    staked_tokens: u64,
    stake_duration: u32,  // days
    participation_history: f64  // 0.0 to 1.0
) -> u64 {
    let base_power = staked_tokens;
    let duration_multiplier = 1.0 + (stake_duration as f64 * 0.01); // 1% per day
    let participation_bonus = 1.0 + (participation_history * 0.5); // Up to 50% bonus
 
    (base_power as f64 * duration_multiplier * participation_bonus) as u64
}

Governance Proposals

• Network Upgrades: Protocol improvements
• Parameter Changes: Block size, fees, rewards
• Treasury Allocation: Community funding
• Emergency Responses: Security incidents

Comparison with Other Projects

Economic Sustainability

Long-term Viability

Revenue Diversification:

• Block rewards (decreasing)
• Transaction fees (increasing)
• AI-mining marketplace (growing)
• DeFi ecosystem fees (expanding)

Deflationary Pressure:

• Quarterly token burns
• Energy staking (temporary supply lock)
• Lost keys/wallets (permanent reduction)

Network Effects

Adoption Growth → Increased Transactions → Higher Fees →
Better Security → More Confidence → Greater Adoption

Risk Factors

Economic Risks

• Market Volatility: Token price fluctuations
• Miner Exodus: Reduced network security
• Regulatory Changes: Compliance costs
• Technology Disruption: Quantum computing threats

Mitigation Strategies

• Diversified Mining: Traditional + AI-mining
• Adaptive Parameters: Dynamic difficulty adjustment
• Treasury Reserves: Emergency funding
• Quantum Resistance: Post-quantum cryptography research

Future Enhancements

Phase 1: Optimization (2024-2025)

• Enhanced energy model
• Improved AI-mining rewards
• Cross-chain token bridges

Phase 2: Expansion (2025-2026)

• DeFi protocol integration
• NFT marketplace fees
• Institutional staking products

Phase 3: Maturity (2026+)

• Full deflationary model
• Governance automation
• Ecosystem revenue sharing

Conclusion

TOS Network’s tokenomics are designed for long-term sustainability, combining the proven scarcity model of Bitcoin with innovative AI-mining rewards and energy-based transactions. Our transparent, mathematically verifiable approach ensures that “Don’t Trust, Verify it” applies to every aspect of our economic model.

The combination of deflationary mechanisms, productive work incentives, and governance features creates a robust economic foundation for the TOS ecosystem’s growth and success.