FortuneBlock Economic Model

The FortuneBlock economic model is designed to promote a fair, decentralized, and long-term sustainable ecosystem without any pre-mining, developer fees, or instant mining practices. This model ensures equitable distribution of rewards to miners, smartnodes, and lucky participants, with a total supply capped at 260 million coins. Below is a detailed explanation of the economic model:

1. No Pre-mine, No Dev Fee, No Instant Mine

• No Pre-mine: There are no pre-allocated coins for developers, investors, or any other entities before the public mining starts. All coins are distributed through the mining process.
• No Dev Fee: Developers or the core team do not receive any automatic portion of the block rewards.
• No Instant Mine: The block rewards start gradually to ensure that no large amounts of coins are mined in an unfair manner at the very beginning of the network.

2. Block Rewards

• Blocks 1 to 720: During the initial phase, blocks 1 to 720 each offer a mining reward of 1 coin per block. This slow start prevents any centralization of mining power and allows the network to distribute coins fairly in the early days.
• Blocks 721 Onwards: Starting from block 721, each block will reward 500 coins. This high reward period continues until the annual halving takes effect.

3. Annual Reward Halving

• Halving Schedule: Every year, the block rewards will halve to reduce the inflation rate and ensure scarcity over time. This halving continues until the total supply reaches 260 million coins, at which point no new coins will be generated.

4. Total Supply

• Maximum Supply: The total supply of FortuneBlock is capped at 260 million coins. No additional coins will be minted or generated once this cap is reached.

5. Reward Distribution (Block 1 to Block 5000)

• For the first 5,000 blocks, the block reward is distributed as follows:
• 95% to Miners: 95% of the block reward is allocated to the miner who successfully mines the block.
• 5% to Lucky Participant: A random lucky participant, selected through a fair random algorithm, receives 5% of the block reward. This adds an element of excitement and incentivizes broader participation.

6. Reward Distribution (Block 5001 Onwards)

• Starting from block 5,001, the reward distribution shifts to include Smartnodes:
• 5% to Lucky Participant: The lucky participant continues to receive 5% of the block reward, encouraging community engagement and participation in the ecosystem.
• The remaining 95% is distributed as follows:
• 75% to Miners: 80% of the block reward goes to miners who continue to secure the network by validating transactions and maintaining decentralization.
• 20% to Smartnodes: 20% of the reward is allocated to Smartnodes, which are incentivized to run full nodes that support network functions, improve scalability, and maintain security.

Key Elements of FortuneBlock’s Economic Model:

• Fair Reward Distribution: Miners, Smartnodes, and random participants all benefit from the block rewards, ensuring that the ecosystem remains balanced and inclusive.
• Decentralization: By rewarding miners, Smartnodes, and lucky participants, FortuneBlock incentivizes decentralization and reduces the risk of centralization in the network.
• Sustainability: The annual halving ensures that inflation is controlled, with rewards gradually reducing over time as the total supply approaches the 260 million cap.

Conclusion

The FortuneBlock economic model is designed to promote a fair and decentralized ecosystem with no pre-mining, no dev fees, and a balanced reward structure. The early slow reward phase, followed by high mining rewards, smartnode incentives, and lucky participant bonuses, ensures that all stakeholders are incentivized to contribute to the network’s security, scalability, and long-term sustainability. With a capped supply of 260 million coins, FortuneBlock offers both predictability and scarcity, fostering a healthy and thriving ecosystem.