PawnHouse Dual Mining Rules & Algorithm

1 Overview

The PawnHouse project team combined and applied both the SMRA theory (2020 Nobel Economic Prize) and The Wisdom of Crowds theory to effectively solve the issue of decentralized NFT asset-pricing and improve the liquidity of NFTs.

1.1 The Basic Supply of Mining Token Rewards

Mining accounts for 60% (600 million) of PawnHouse’s total token volume, with 51% supplied in the first three years and 9% supplied in the fourth year. The breakdown is as follows:

1.2 Distribution of Token Supply in a Cross-Chain Deployment Environment

Since the current NFT assets are distributed on multiple public chains such as Ethereum, BSC, HECO, FLOW. PawnHouse will support the provision of multi-chain price information and transaction assets for users in the future.

2 Liquidity Mining Algorithm

When the daily tokens are completely mined, the supply will stop. Therefore, after the tokens are mined on the day, users who provide liquidity transactions will no longer receive reward tokens.

2.1 Algorithm A

When all tokens are mined on the same day, the token rewards will be reduced by 1/3 on the next day.

2.2 Algorithm B

If all the reward tokens in a natural day are not mined, the token amount gets carried over to the next day based on the unmined part, which will cause the token reward ratio to change on the next day. Situations at this time are as follows:

  • In multi-chain mining, the daily supply on different chains is different.
  • Daily Supply, Remaining, and Reward Ratio are all shown on pawnhouse.io

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PawnHouse

Provide Better Liquidity and Price Discovery Mechanism for Nonstandard Assets