Economic Harmony (EH) ™
Economic Harmony (EH) Model
The Economic Harmony (EH) Model is the foundation of the Income Layer's ecosystem, ensuring balance, sustainability, and scalability. This dynamic framework adjusts in real-time to key economic factors such as supply, demand, liquidity, and transaction volume. By maintaining an optimal balance between inputs like taxes and liquidity, and outputs such as UBI distribution and rewards, the EH model ensures the ecosystem can withstand periods of market volatility without compromising stability.
Key Variables in the EH model include circulating supply, liquidity reserves, transaction volume, and the number of active and waiting nodes. These variables are continuously monitored and adjusted to prevent oversupply, maintain liquidity thresholds, and ensure that UBI distribution aligns with the system’s capacity to generate resources. The model also tracks collected taxes, treasury reserves, and deflation rates, optimizing token scarcity and economic health over time.
The EH model’s real-time adjustments ensure long-term stability by dynamically balancing input and output. When liquidity is low, UBI payouts are reduced, while excess liquidity may trigger increased payouts or lowered staking requirements. This adaptive approach keeps the system resilient, sustainable, and optimized for growth, ensuring a thriving ecosystem for all participants.
Last updated