Tokenomics
ECO Token Overview
ECO Protocol (ECO) is an ERC-20 standard token issued on the Ethereum network, serving as the core economic unit and value carrier of the ECO Protocol ecosystem. ECO token is not only a payment medium for various services within the ecosystem, but also an important bridge connecting real-world environmental assets with blockchain digital economy.
Basic Token Parameters
Token Name
ECO Protocol
Token Symbol
ECO
Token Standard
ERC-20 (Ethereum Network)
Total Supply
1,000,000,000 ECO (1 billion, fixed supply)
Decimal Places
18
Initial Price
0.2 USDT
Network
Ethereum
Deflationary Mechanism
Smart Burning Mechanism
Technical Features
Ethereum Network Foundation: Built on the Ethereum network, enjoying support from the world's largest smart contract ecosystem and developer community.
Enterprise-grade Security: Audited by multiple rounds of international top security institutions, adopting upgradeable contract architecture to ensure asset security and system stability.
International Standards: Complies with ERC-20 international standards, supports global mainstream exchanges and wallets, facilitating international operations and compliance.
DeFi Ecosystem Integration: Native support for Ethereum DeFi protocols, seamlessly integrating liquidity mining, lending and other financial services.
Token Functions
🔋 Computing Power Purchase: Purchase environmental equipment computing power to participate in mining and earn rewards.
🏦 Governance Rights: Participate in DAO governance and vote on important proposals.
💱 Payment Medium: Payment for service fees within the ecosystem.
🔄 Value Storage: Long-term value storage guaranteed by deflationary mechanisms.
🌱 Environmental Incentives: Reward environmental contributions and green behaviors.
🔗 Asset Bridge: Connect RWA assets with digital economy.
$ECO Token Basic Information
As the core economic unit of the entire ecosystem, ECO token has a fixed total supply of 1 billion tokens, adopting 18-decimal precision to ensure transaction flexibility. ECO achieves dynamic balance through the smart mining machine system. When users purchase computing power using ECO tokens, the paid tokens will be permanently burned, thereby achieving deflationary e
ffects and laying the foundation for long-term value accumulation.
Token Distribution Structure
The ECO token distribution structure has been carefully designed to balance ecosystem stability with sustainable development needs. 80% of the total supply is allocated to the computing power mining reward pool, fully reflecting the core value of AI-driven environmental equipment computing power to the entire ecosystem. The remaining 20% of tokens are reasonably allocated to key areas including technology development, market value management, ecosystem incentives, governance mechanisms, team building, and strategic reserves, ensuring comprehensive healthy development of the ecosystem.
Computing Power Mining Reward Pool
80%
800
10-year algorithmic distribution based on computing power contribution
Incentivize environmental equipment computing power contribution, AI-optimized rewards
Technology Development & Operations
8%
80
10-year linear release, excess burned
Core protocol development, AI algorithm optimization, smart contract development
Market Value Management Fund
4%
40
Strategic release based on market conditions
Liquidity provision, market stability, exchange market making
Ecosystem Incentives
3%
30
Continuous distribution based on ecosystem participation
Community building, developer incentives, partner rewards
Team & Advisors
2%
20
Linear release over 5+ years, 18-month lock period
Core team incentives, technical advisors, environmental expert advisors
Strategic Reserve Fund
3%
30
Foundation multi-sig control, emergency use
Incident handling, market crisis response, ecosystem protection, DAO governance reserve
Computing Power Mining Reward Structure (80%)
The computing power mining reward pool, as the core component of token distribution, accounts for 80% of the total supply, fully reflecting the key position of AI-driven environmental equipment computing power in the entire ecosystem. This distribution strategy adopts a decreasing issuance plan:
Years 1–2: 320 million tokens (40% of mining allocation)
Years 3–4: 240 million tokens (30%)
Years 5–6: 160 million tokens (20%)
Years 7–8: 80 million tokens (10%)
The mining reward distribution mechanism is based on AI algorithm-optimized multi-variable formulas that comprehensively consider multiple dimensions including actual computing power contribution of equipment, environmental benefit indicators, network stability performance, geographical distribution balance, and data quality provided for AI model training. The system evaluates computing power contribution based on actual processing capacity of EcoMagic equipment, quantifies environmental benefits (e.g., oil and gas recovery volume, carbon reduction effects, energy efficiency ratios), and assesses network stability through metrics like online time, failure rates, and response speeds. The system also encourages global deployment and additional incentives for nodes that provide high-quality data for AI model training.
Technology Development & Operations Allocation (8%)
The ECO Foundation allocates 8% of tokens specifically for technology development and operations:
3% — Core protocol development: blockchain infrastructure, smart contract security, cross-chain interoperability.
2.5% — AI algorithm optimization frameworks: R&D for operation parameter optimization, predictive maintenance, fault diagnosis, energy efficiency; continuous model training.
1.5% — RWA mapping systems: mapping physical equipment to digital assets, real-time on-chain processing of operational data and dynamic value assessment.
1% — Security and compliance: ongoing audits, regulatory adaptability, compliance framework development.
Market Value Management & Liquidity (4%)
To maintain a healthy market environment and ensure stable ecosystem operation, ECO established a market value management fund (4% total supply):
2.5% — Liquidity provision and market making on centralized and decentralized exchanges, including DEX liquidity pools and strategic market maker partnerships.
1.5% — Market stability mechanism: controlled releases and strategic deployment during extreme volatility to protect investors and ecosystem stability.
Smart Mining Machine Economic Model
ECO adopts an innovative smart mining machine model that combines traditional mining concepts with actual environmental equipment operations.
Mining Machine Tier and Computing Power Mapping
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
AI-Driven Computing Power Compensation Mechanism
The AI computing power compensation mechanism uses a dynamic compensation algorithm where daily computing power T equals base computing power T multiplied by the compensation coefficient raised to the power of operating days. The compensation coefficient is derived from the base value 1.003 plus the network activity index multiplied by 0.004.
Key features:
Dynamic adjustment: AI monitors network status and adjusts compensation parameters in real-time.
Fairness guarantee: provides higher compensation to later participants to avoid monopolization.
Efficiency incentives: nodes with higher operation efficiency receive higher compensation coefficients.
Automatic network balance: AI balances computing power distribution to avoid concentration and ensure decentralization.
Diversified Purchase Mechanisms
100% ECO payment mode: users purchase computing power using pure ECO tokens; paid ECO tokens are permanently burned.
Hybrid payment mode: ratio configurations evolve over time (initially 50% ECO + 50% ESG → later 80% ECO + 20% ESG). ECO portion is burned; ESG portion flows back to mining pool.
ESG queue entry mechanism: designed for large investors, controls daily entries (2–50,000 USDT range) with a 0.2 USDT floor price; entries processed in queue order.
ESG direct order: reserved for direct purchases at exchange guide prices; will open after mechanism maturity.
Token Release Plan
The ECO token release plan balances immediate operational needs and long-term ecosystem stability.
Phase 1
2025–2027
40%
40%
Initial mining rewards, technology development launch, ecosystem incentive launch
Basic algorithm deployment, AI model optimization
Phase 2
2028–2031
30%
70%
Continued mining rewards, balanced distribution across categories
Smart contract upgrades, cross-chain interoperability
Phase 3
2032–2034
30%
100%
Remaining mining rewards, final milestone releases
Global ecosystem expansion, full decentralization
Daily Output Distribution Mechanism
ECO uses a dual-layer distribution mechanism allocating daily token output as:
60% — Static rewards
40% — Dynamic incentives
Static Reward Distribution Mechanism (60%)
Static rewards provide stable base rewards. Core calculation:
Personal daily token output = (Personal computing power T / Network-wide computing power T) × Daily static token output × AI efficiency coefficient
AI efficiency coefficient is dynamic (base 1.0) and adjusts based on multiple performance dimensions. Bonuses include:
Equipment efficiency: +0.1 to +0.3
Environmental contribution: +0.05 to +0.2
Network stability: +0.05 to +0.15
Data quality for AI training: +0.1 to +0.25
AI Efficiency Coefficient formula:
AI Efficiency Coefficient = Base Coefficient × Market Activity Factor × Price Stability Factor × Liquidity Factor × Personal Performance Bonus
Where:
Base Coefficient = 1.0
Market Activity Factor = 1 + (Daily Trading Volume / 30-day Average Trading Volume - 1) × 0.2
Range: [0.8, 1.4]
Price Stability Factor = 1 + (1 - |Daily Price Volatility|) × 0.15
Range: [0.85, 1.15]
Liquidity Factor = 1 + (Market Circulation / Total Supply) × 0.1
Range: [0.9, 1.1]
Personal Performance Bonus = Equipment Efficiency Bonus + Environmental Contribution Bonus + Network Stability Bonus + Data Quality Bonus
Range: [0, 0.9]This encourages participants to improve equipment quality, operational efficiency, environmental contributions, and AI data contributions, while synchronizing distribution with market and ecosystem health.
Dynamic Reward Distribution Mechanism (40%)
Dynamic rewards incentivize special contributions and are subdivided into three subcategories:
Ecosystem Building Rewards
Share: 20% of dynamic rewards (largest component).
Calculation: Personal ecosystem reward = (Personal ecosystem contribution score / Network-wide ecosystem contribution score) × Daily ecosystem reward pool.
Contribution scoring weights:
Equipment operation stability: 30%
Environmental data contribution: 25%
Community participation: 20%
Technical innovation contribution: 15%
Governance participation: 10%
AI-Driven Value Capture Mechanism
ECO applies AI to construct multi-dimensional value creation and accumulation mechanisms.
Smart Device Network Effects
As devices connect to the ECO network, AI learning and optimization scale exponentially. Key outcomes:
Data scale effects and algorithm self-evolution improve optimization.
Device collaborative optimization: coordinated operations can yield 20–40% overall efficiency improvement.
Predictive maintenance: reduces downtime by ~70% and maintenance costs by ~50%.
Energy efficiency intelligent regulation: typically 15–30% energy savings through dynamic parameter optimization.
Carbon footprint optimization: maximizes carbon reduction via optimized operations and processing flows.
RWA Asset Value Mapping Mechanism
RWA mapping reflects physical device value into the digital token system using:
Device token value = Base device value × Operation efficiency coefficient × Environmental contribution coefficient × Market demand coefficient
Mechanism components:
Real-time IoT-on-chain data uploads (processing volume, energy use, failure rates).
Environmental benefit quantification for carbon reduction and pollutant processing.
Market supply-demand analysis via AI to adjust weights dynamically.
Technology upgrade value capture to reflect improvements in token value.
Data Value Accumulation Mechanism
Operational data accumulation fuels long-term value:
AI model training: improved data quality increases prediction accuracy and optimization.
Industry knowledge graph: structured intelligence for equipment selection, deployment, and optimization.
Personalized optimization services: customized solutions based on historical data and AI analysis.
Predictive analysis: forecasts market demand, tech development, and policy trends for strategic planning.
Token Burning and Deflationary Mechanism
ECO employs multi-layered burning to create deflationary pressure:
Transaction Fee Burning
Computing Power Transaction Fees: 1–2% of each computing power purchase burned.
RWA Asset Trading: 2–3% of equipment asset tokenization/trading fees burned.
Cross-chain Bridge Fees: 0.5–1% burned.
Governance Voting Fees: small ECO burns as anti-spam for important proposals.
AI Optimization Burning
AI-triggered burns based on performance:
Efficiency Improvement Rewards: partial reward tokens burned when AI significantly improves equipment efficiency.
Network Balance Regulation: AI triggers burns when detecting token oversupply.
Quality Incentive Burning: partial rewards from low-quality nodes are burned to encourage quality.
Milestone Burning
Planned one-time burns tied to milestones:
2025: Mainnet launch burns 1,000,000 ECO
2026: First 1,000 devices connected burns 3,000,000 ECO
2027: Global expansion to 10,000 devices burns 5,000,000 ECO
2028: Major AI algorithm upgrade burns 2,000,000 ECO
2029: Cross-chain ecosystem completion burns 3,000,000 ECO
Governance and Autonomy Mechanism
ECO uses AI-assisted decentralized governance.
DAO Governance Structure
Governance token weighting factors:
ECO Holdings: base voting weight.
Staking Duration: additional weight for long-term stakers.
Ecosystem Contribution: AI-assessed contributions receive weight bonuses.
Professional Rating: expert weights for technical/environmental backgrounds.
AI-Assisted Decision Making:
Proposal Analysis: AI evaluates technical feasibility and economic impact.
Voting Prediction: predicts voting results and execution effects using historical data.
Risk Assessment: evaluates potential risks and benefits.
Execution Supervision: monitors proposal implementation.
Governance Incentive Mechanism
Proposal Rewards: quality proposers receive ECO.
Voting Rewards: active voters receive governance rewards.
Execution Rewards: teams executing proposals receive execution rewards.
Supervision Rewards: community members monitoring execution receive supervision rewards.
Ecosystem Sustainable Development Mechanism
ECO ensures long-term sustainability across economic, technical, and environmental dimensions.
Economic Sustainability
Revenue Diversification: transaction fees, staking rewards, RWA returns, AI service fees.
Cost Optimization: AI-driven operational cost reductions.
Value Creation: continuous innovation and service optimization.
Risk Diversification: diversified income and risk-management mechanisms.
Technical Sustainability
Continuous Innovation: technology fund supports upgrades.
Open Source Ecosystem: core technologies opened to attract developers.
Standard Setting: participation in industry standards to ensure leadership.
Security Assurance: ongoing security audits and upgrades.
Environmental Sustainability
Carbon Neutral Goals: committed to carbon neutrality/negative emissions.
Green Mining: encourage renewable energy use.
Environmental Incentives: extra rewards for outstanding environmental contributions.
Sustainable Development: integrate UN Sustainable Development Goals.
Token Utility and Value Drivers
ECO token is the core economic unit with multi-dimensional practical value.
Value Driving Factors
Technology Innovation Driven:
Continuous AI algorithm optimization.
Functional expansion via new technologies.
Enhanced cross-chain interoperability.
Ecosystem Expansion Driven:
Growth in connected devices.
User base expansion.
Partner network expansion.
Market Demand Driven:
Demand from stricter environmental regulations.
Opportunities in carbon trading markets.
Rise of green finance.
Economic Model Driven:
Deflationary mechanisms reducing supply.
Mining locks reducing circulation.
Diversified income increasing intrinsic value.
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