9. Minting Difficulty
Last updated
Last updated
Similar to Bitcoin mining where the smart contracts monitor the mining speed based on the miners' activities, MetaHub's Smart Contract regulates the speed at which new tokens are added to the Circulating Supply of MEN. It's a crucial element in maintaining the stability and security of the project. As more users join the MetaMinting mechanism, increasing the system's Staking Balance will increase the minting difficulty to ensure that tokens are claimed at a consistent rate.
The minting difficulty is pivotal for the platform's security and decentralization, making it harder for a single entity to control most of the network's minting power, thus preventing potential abuses. As the profitability of minting attracts more users, the difficulty of maintaining balance rises.
When minting difficulty rises significantly, users may find it more challenging and costly to mint new tokens. This can reduce the rate at which new tokens are introduced into circulation, potentially leading to decreased supply. If demand remains stable or increases, the reduced supply can drive up the value of the minted tokens.
The daily minting rate will decrease by 0.1% for each milestone reached by the accumulated Total Staking Balance from all Minters in the Smart Contract.