Original model

Deflationary economic models and multidimensional value capture mechanisms

💎 EON Cherry Protocol: Deflationary Economic Model and Multi-Dimensional Value Capture

The core of the EON Protocol lies in constructing an Intrinsically Deflationary economic model based on the "Burning-Mining Mechanism." This model is designed to achieve sustained token scarcity management and cross-ecosystem value capture through precise algorithmic design and a multi-tiered incentive structure.

I. Core Mechanism: The Rigid Burn-to-Mine Protocol

This mechanism serves as the underlying engine for the circulation and issuance of the EON token (FRC20). By directly linking the act of token burning with computing power incentives, it establishes EON's status as a rigid deflationary asset.

Mechanism Element	Professional Description	Economic Driving Force
Deflationary Fuel	Users purchasing computing power miners must burn EON tokens equivalent to the corresponding output value (uniformed as of the investment) to acquire the power.	Rigid Deflationary Demand: Transforms the EON token into a consumable fuel for securing future returns, ensuring existing supply is continuously removed from circulation and establishing a high scarcity threshold.
Supply Control Issuance	The output method is defined as "Burning-Staked Computing Power Mining, Mining-while-Burning." Every new token generation is predicated on a larger scale of token destruction.	Dynamic Supply-Demand Balance: Implements an anti-inflationary mechanism at the protocol level, dynamically adjusting the burning-to-issuance ratio via algorithms to ensure the token's long-term value stability.

II. Scarcity Management: Dual Dynamic Halving Mechanisms

The protocol further reinforces token scarcity and guides users toward long-term compounding strategies by combining dynamic production reduction based on individual behavior and global time.

Halving Type	Control Mechanism	Logical Objective	Economic Effect
Miner Re-Stake Slowdown	The cycle increases by 5 days for every re-stake of a miner (capped at 130 days).	Balance Short-Term Sell Pressure: Dynamically extends individual return cycles, discourages short-term liquidation, and incentivizes token re-investment, locking output back into the protocol.	Reinforces Compounding Effect, providing continuous lock-up momentum for the token.
Platform Cycle Slowdown	Starting from the official launch, the initial output cycle increases by 5 days every 120 days (three increments in total, capped at 65 days).	Global Time-Based Deflation: Ensures the overall token issuance rate steadily slows down over time.	Elevates Early Participation Incentives and provides stable long-term support for the token price.

III. EON Token's Multi-Dimensional Value Capture System

The EON token (Total Supply: 2.1 Billion) is endowed with six value capture functions, upgrading it from a mere medium of exchange to the core asset of the ecosystem.

Value Dimension	Mechanism Description	Asset Positioning
Compounding & Financial Leverage	Generated EON can be re-staked and rolled over, achieving exponential growth in computing power scale and daily output (e.g., 1.6x amplification in 21 days).	High-Efficiency Asset Allocation: Provides a yield amplification effect far exceeding static passive investment.
Governance Weight	Token holders can participate in voting, discussion, and proposals, determining the ecosystem's direction, including future destruction decisions regarding EBN BTC L2 public chain token shares.	Power and Control: Anchors the ecosystem's highest decision-making authority and future development trajectory.
Profit Sharing Rights	80% of the 15% fee deducted when users withdraw EON is distributed as partner dividends. Partners are exempt from withdrawal fees.	Profit Rebate Mechanism: Structurally allocates transaction fee revenues to the community builders.
Transaction Fees	A 10% fee is charged to the seller in C2C transactions (paid in EBN or USDT) and used for public chain ecosystem development.	Protocol Revenue: Directly captures liquidity value from the transaction stage.
Market Maker Income	Levels V1 and above can apply to become market makers, enabling 24-hour free order placement and trading.	Liquidity Service Incentive: Rewards for providing essential market liquidity.
Market Premium Anchor	The protocol mechanism sets an expected annual premium growth of approximately 50%, automatically executed by the smart contract based on supply and demand, with no centralized fund pool.	Scarcity Premium: Establishes a stable price growth expectation through the deflationary model and transparent contract execution.

IV. Conclusion: The Deflationary Closed Loop of Technology and Economy

The EON Protocol's economic model is a meticulously designed deflationary closed-loop ecosystem ("Burn-Mine-Apply-Appreciate").

It effectively controls the token supply through the rigid burning mechanism, reinforces scarcity expectations via the dynamic halving mechanisms, and bestows the EON token with irreplaceable utility and financial value through the multi-dimensional value capture system (compounding, governance, dividends, premium).

This model not only solves the issue of unsustainable economic incentives in existing L2s but also establishes the EON token as the core value engine driving the future EBN L2 modular aggregation platform (hosting RWA, DeFi, etc.), ensuring the protocol's long-term sustainable growth and powerful ecological attraction.