Mining_Mechanism

System Overview

The ECO Protocol ecosystem combines the actual operation of environmental equipment with blockchain mining mechanisms through an innovative smart mining machine model, building a fair, transparent, and sustainable economic ecosystem. The system is built on the Ethereum network, adopts a stable economic model, and ensures all participants receive reasonable returns while maintaining long-term healthy development of the ecosystem through AI-driven computing power compensation mechanisms and intelligent revenue distribution systems.

Mining Machine Tiers and Investment Configuration

The ECO Protocol system designs six different investment tier mining machine configurations, each carefully calculated through precise economic models to provide reasonable investment returns while incentivizing larger-scale participation through tiered computing power bonuses.

Mining Machine Tier Table

Investment Amount

Computing Power T

Corresponding Equipment Value

Expected Static Monthly Yield

AI Optimization Bonus

100 USDT

100T

Small VOCs Processing Equipment

≈15%

1.0

500 USDT

500T

Medium Oil & Gas Recovery Unit

≈15%

1.0

1,000 USDT

1,050T

Standard EcoMagic EVR2.0

≈15%

1.05

2,000 USDT

2,200T

Enhanced Processing System

≈15%

1.1

5,000 USDT

5,750T

Industrial Processing Equipment Combo

≈15%

1.15

10,000 USDT

12,000T

Large Environmental Equipment Network

≈15%

1.2

As shown in the table, as investment scale increases, unit computing power cost gradually decreases, with the highest tier saving 17% in computing power acquisition cost compared to the basic tier. This design not only encourages large investments but more importantly provides economic incentives for rapid ecosystem development through economies of scale.

The computing power bonus calculation formula is:

Actual Computing Power = Base Computing Power × (1 + Bonus Percentage)

For example, the actual computing power for the 1,000 USDT tier is:

1,000T × (1 + 5%) = 1,050T

Diversified Purchase Mechanisms

The ECO Protocol system provides four different mining machine purchase methods to meet different investors' needs and risk preferences, while achieving ecological balance through differentiated token processing mechanisms.

1

100% ECO Payment

Users purchase mining machines using pure ECO tokens, and all paid ECO tokens will be permanently burned, creating deflationary effects. This method provides actual utility value and scarcity support for ECO tokens.

2

Hybrid Payment Mode

  • Initial Stage: 50% ECO + 50% ESG

  • Mature Stage: 80% ECO + 20% ESG

In hybrid payments, the ECO portion is burned while the ESG portion flows back to the mining pool, ensuring both tokens play important roles in the ecosystem.

3

ESG Queue Entry

  • Daily entry quota control: 20,000-50,000 USDT

  • Early stage maximum 50,000 USDT entry

  • Floor price: 0.2 USDT

  • FIFO (First In, First Out) principle

4

ESG Direct Orders

Direct purchase at exchange guide prices, gradually opened after mechanism maturity, providing more liquidity support to the market.

Intelligent Computing Power Compensation Mechanism

The most innovative feature of the ECO Protocol system is its AI-driven computing power compensation mechanism, ensuring long-term fairness and sustained vitality of the ecosystem through dynamic adjustments.

Compensation Algorithm

Computing power compensation takes effect from the second day of system launch, using compound calculation mode:

Daily Effective Computing Power = Base Computing Power × Compensation Coefficient^Operating Days
Compensation Coefficient = 1.003 - 1.007 (AI algorithm dynamic adjustment)

Fairness Example

Using 500 USDT investment as an example:

  • Zhang San (purchased on day 1): Gets 500T base computing power

  • Li Si (purchased on day 200): Due to computing power compensation, gets approximately 1000T effective computing power

This design ensures later participants are not disadvantaged by timing while incentivizing continuous network growth.

Network-wide Computing Power and Token Production Mechanism

The ECO Protocol system adopts a dynamic token production mechanism that automatically adjusts daily token production based on network-wide computing power growth, ensuring economic balance and sustainable development.

Initial Setting Parameters

  • Expected Private Sale Mining Machines: 700,000 USDT

  • Daily Token Production: 30,000 ECO

  • Issue Price: 0.2 USDT

  • Static Monthly Yield: Approximately 15%

Dynamic Expansion Mechanism

When network-wide computing power increases by 200,000T, daily token production increases accordingly
Final cap: 400,000 ECO/day

This design meets early participants' yield expectations while providing sufficient incentive space for subsequent scale expansion.

Daily Production Distribution Mechanism

The ECO Protocol system adopts a 60% static revenue + 40% dynamic revenue distribution model, using daily production of 100,000 tokens as a detailed example.

Static Revenue Distribution (60% = 60,000 tokens)

Static revenue is fairly distributed according to computing power ratio, with the calculation formula:

Personal Daily Token Production = (Personal Computing Power T ÷ Network-wide Computing Power T) × Daily Static Token Production

Due to the computing power compensation mechanism, effective computing power is used in actual calculations:

Personal Effective Computing Power = Base Computing Power × Compensation Coefficient^Operating Days

Dynamic Revenue Distribution (40% = 40,000 tokens)

Dynamic revenue is further subdivided into three parts:

Direct Referral Rewards (10% = 4,000 tokens)

Weighted distribution based on network-wide direct referral computing power T quantity:

Personal Direct Referral Reward = (Personal Direct Referral Computing Power T ÷ Network-wide Direct Referral Computing Power T) × 4,000 tokens

New Addition Rewards (10% = 4,000 tokens)

Weighted dividend based on network-wide community new computing power T ratio:

Personal New Addition Reward = (Personal Community New Computing Power T ÷ Network-wide New Computing Power T) × 4,000 tokens

Special case: If only one person's community has new additions on a given day, they receive all 4,000 reward tokens.

Community Computing Power Rewards (80% = 32,000 tokens)

Uses sun-line structure, with total computing power from all areas except the largest area forming personal community:

Personal Community Reward = (Personal Community T Total ÷ Network-wide Community T Total) × 32,000 tokens

Community Definition:

  • Sun-line structure, excluding largest area

  • Sum of other areas constitutes personal community

  • Encourages balanced development, prevents excessive concentration

Mining Machine Management and Exit Mechanism

Multi-Mining Machine Management

Each wallet address can purchase multiple mining machines of different tiers in chronological order, with the system backend displaying:

  • Total USDT investment across all mining machines

  • Total computing power T

  • Operating status and revenue of each mining machine

Exit Rules

Exit Condition:

Dynamic Revenue + Static Revenue = 2x Investment Amount (calculated in ECO value)

Exit Order: Exit in purchase order (FIFO principle)

This design provides investors with clear revenue expectations and risk control, ensuring sustainable ecosystem development.

Token Circulation and Burning Mechanism

The ECO Protocol system establishes a comprehensive token processing mechanism, achieving economic balance through differentiated processing:

Token Processing Rules

Scenario
ECO Processing
ESG Processing

Mining Machine Purchase

100% Burned

100% Returns to Mining Pool

Withdrawal Fuel Consumption

100% Burned

100% Returns to Mining Pool

Withdrawal Mechanism

  • Transaction Fee: No traditional transaction fees

  • Fuel Consumption: Requires consuming 5% of withdrawal amount in ESG or ECO as fuel

Fuel consumption formula:

Fuel Consumption = Withdrawal Amount × 5%

This innovative design reduces user costs while creating actual usage demand for tokens.

Economic Model Advantages

The ECO mining machine and computing power operation mechanism has the following core advantages:

  1. Fairness Guarantee: Computing power compensation mechanism ensures later participants are not disadvantaged

  2. Incentive Diversification: Static + dynamic revenue meets different participant needs

  3. Sustainable Development: 2x exit mechanism and dynamic token production ensure long-term stability

  4. Value Accumulation: ECO burning mechanism creates deflationary effects

  5. Risk Control: Multiple security mechanisms and transparent management

Through this complete mechanism design, the ECO ecosystem creates a fair, transparent, and sustainable investment environment for all participants, laying a solid foundation for the long-term prosperity of the entire ecosystem.

Last updated