UltronGlow economic model—the three major destruction methods.

The design of the economic model model is very important to the public chain. A good economic model can not only maximize the incentive effect, but also avoid the tragedy of the commons. Let’s get to know the UltronGlow economic model-the three major destruction methods.

The casting of the token corresponds to the economic inflation model. In a perfect economic ecology,inflation will cause the value of the token to be rapidly diluted. In UltronGlow, we designed the following deflation model to combat the value dilution problem caused by inflation:

1. Output deflation

The issuance of UTG follows a predetermined and controlled supply model. This model determines that the output of the token will gradually decrease over time.

2.UTG→SRT conversion deflation

The cyclic supply and demand model of UTG and SRT revolves around the service. The SRT paid by the service is destroyed while UTG is cast at the same time. If you continue to use the service, you need to destroy UTG to forge SRT. Such a circular model is destined that with the development of an effective storage ecosystem (including applications, nodes, storage computing power, users, etc.), the demand for SRT will also increase, the amount of UTG destruction will also increase simultaneously. The supply demand cycle of UTG and SRT represents an extreme deflation.

3.Slash and destruction

If the service quality of the node is unstable or if it is malicious, a part of the pledged UTG token will be directly destroyed.

The combination of the above three destruction methods can realize the anchoring of the value of network resources by SRT, and the circulation of UTG market can be kept under a proper tightening state. The value of the two gains each other.