Tokenomics & Emissions
MINERAL's tokenomics are inspired by Bitcoin's scarcity model: hard-capped supply, predictable emission schedule, and halving events that progressively reduce new token issuance.
Token Overview
| Property | Value |
|---|---|
| Name | MINERAL |
| Symbol | MINERAL |
| Standard | ERC20 (with Burn, Permit, Cap) |
| Chain | Base L2 |
| Total Supply Cap | 21,000,000 (hard-coded, immutable) |
| Decimals | 18 |
| Upgradeable | No (immutable contract) |
The 21M cap is enforced at the smart contract level. The mint() function checks totalSupply() + amount <= CAP on every call. There is no admin function to increase the cap. It is permanent.
Supply Distribution
| Allocation | Percentage | Amount | Purpose |
|---|---|---|---|
| Mining Emissions | ~92.86% | 19,500,000 | Distributed through Auction Mining over time |
| Initial Liquidity | 5% | 1,050,000 | DEX liquidity pool (MINERAL/ETH) |
| Dev Wallet | ~2.14% | 450,000 | Protocol development and operations |
| Total | 100% | 21,000,000 | Hard cap |
Initial Allocation Guard
The smart contract enforces that initial allocations (LP + Dev) cannot exceed 10% of the total cap:
lpAmount + devAmount <= cap * 10 / 100
This is validated in the constructor at deployment time. It cannot be changed after.
No Hidden Minting
The token contract has a single minter address — the EmissionsController. This is set once and cannot be changed. Only the EmissionsController can mint new tokens, and it can only mint up to the remaining supply cap.
Important: When tokens are burned (via buyback), totalSupply decreases, which technically reopens minting headroom under the cap. However, the EmissionsController's own emission schedule determines actual minting — burns don't accelerate emissions.
Emission Schedule
How Emissions Work
Token emissions flow through the Auction Mining system:
- EmissionsController calculates the current emission rate per second for each vein
- When a mining event occurs (mine or settle), the controller reserves the corresponding token amount
- Reserved tokens are credited to the operator as unrefined MINERAL in the RefineVault
- Users must refine their tokens to convert them to tradeable MINERAL (10% refine fee)
Mining Veins (4 Slots)
Each mining vein has a different base emission rate:
| Vein | Mineral | Base Rate (Epoch 1) | After 1st Halving | After 2nd Halving |
|---|---|---|---|---|
| Slot 0 | Amethyst | 0.4 tokens/sec | 0.2/sec | 0.1/sec |
| Slot 1 | Emerald | 0.8 tokens/sec | 0.4/sec | 0.2/sec |
| Slot 2 | Sapphire | 1.2 tokens/sec | 0.6/sec | 0.3/sec |
| Slot 3 | Ruby | 1.6 tokens/sec | 0.8/sec | 0.4/sec |
| Total | 4.0 tokens/sec | 2.0/sec | 1.0/sec |
Higher-tier veins emit more tokens per second but also command higher auction prices (supply and demand equilibrium).
Epoch System
| Parameter | Value |
|---|---|
| Epoch Length | 28 days (2,419,200 seconds) |
| Halving Model | Configurable decay per epoch |
| Decay Rate | Set at deployment (e.g., 50% = 5000 BPS) |
| Schedule Updates | Owner can schedule up to 8 epochs ahead |
Daily Emission Schedule
| Period | Rate | Daily Emission | Cumulative (28 days) |
|---|---|---|---|
| Epoch 1 (Days 1-28) | 4.0/sec | 345,600 tokens | 9,676,800 |
| Epoch 2 (Days 29-56) | 2.0/sec | 172,800 tokens | 14,515,200 |
| Epoch 3 (Days 57-84) | 1.0/sec | 86,400 tokens | 16,934,400 |
| Epoch 4 (Days 85-112) | 0.5/sec | 43,200 tokens | 18,144,000 |
| Epoch 5 (Days 113-140) | 0.25/sec | 21,600 tokens | 18,748,800 |
| Epoch 6+ | Continues halving... | ... | Approaching 19.5M |
Note: Actual emission timing depends on mining activity. Tokens are only emitted when veins are actively mined (operator present). Unused emission time is lost, not accumulated.
Emission Decay Formula
rate_at_epoch = baseRate * ((10000 - decayBps) / 10000) ^ (epoch - baseEpoch)
This is computed with WAD precision (1e18) for accuracy across long time periods.
Refining Mechanism
Mining rewards start as unrefined MINERAL — a non-transferable balance tracked in the RefineVault. To convert them to tradeable ERC20 MINERAL tokens, users must refine them.
How Refining Works
| Step | Action |
|---|---|
| 1 | User earns unrefined MINERAL from Auction Mining |
| 2 | User calls refine(amount) on RefineVault |
| 3 | 10% refine fee is deducted |
| 4 | 90% is minted as ERC20 MINERAL tokens |
| 5 | The 10% fee is redistributed to all remaining unrefined holders |
The Game Theory
The refine fee creates a prisoner's dilemma:
- If you refine early, you pay 10% but get tokens sooner (to sell, stake, or provide LP)
- If you wait, you earn a share of other users' refine fees — increasing your unrefined balance
- The longer you wait, the more fees you collect — but you also risk the token price changing
This mechanic rewards patient participants and creates natural sell pressure smoothing. Early sellers subsidize patient holders.
Fee Redistribution Math
The fee is redistributed using an accumulator pattern (O(1) gas cost regardless of number of holders):
When user refines X tokens:
fee = X * feeBps / 10000
accFeePerShare += fee * 1e18 / totalShares
Each holder's pending reward:
pending = shares * accFeePerShare / 1e18 - feeDebt
Special Case: Last Holder
If you are the last person holding unrefined tokens, the refine fee is waived (there's no one to redistribute to). You receive 100% of your unrefined balance.
Fee Cap
The refine fee is capped at 50% maximum (5000 BPS) in the smart contract. It cannot be set higher. The initial value is 10% (1000 BPS).
Deflationary Mechanics
MINERAL has three sources of deflationary pressure:
1. Buyback & Burn
- 8% of all Auction Mining revenue flows to the BuybackVault
- A permissionless keeper function swaps accumulated ETH for MINERAL on the DEX
- All purchased tokens are permanently burned (sent to zero address)
- Burns reduce
totalSupply, making each remaining token scarcer
2. Refine Fee Redistribution
- 10% of refined tokens are redistributed rather than entering circulation
- This slows the rate at which new tokens hit the market
- Creates a "slow drip" effect on sell pressure
3. Auto Liquidity Provision
- 3% of all Auction Mining revenue flows to the AutoLPVault
- A keeper function swaps half for MINERAL and pairs it with the other half as ETH
- Resulting LP tokens are sent to a designated recipient (can be set to a dead address for permanent lock)
- Removes tokens from circulation while deepening liquidity
The Flywheel Effect
More Mining Activity
→ More ETH Revenue
→ More Buyback Burns (8%)
→ Fewer Tokens in Circulation
→ Higher Scarcity
→ Higher Token Value
→ Mining Veins More Attractive
→ More Mining Activity (cycle repeats)
Supply Projection
Conservative Scenario (50% decay per epoch)
| Milestone | Approximate Time | Circulating Supply | % of Cap |
|---|---|---|---|
| 50% mined | ~2 months | 9.75M | 46.4% |
| 75% mined | ~4 months | 14.6M | 69.5% |
| 90% mined | ~8 months | 17.5M | 83.3% |
| 95% mined | ~1 year | 18.5M | 88.1% |
| 99% mined | ~2 years | 19.3M | 91.9% |
Note: These projections assume continuous mining. Actual numbers depend on participation rates. Burned tokens are not re-minted through emissions — they reduce effective circulating supply permanently.
Key Comparison: MINERAL vs. Bitcoin
| Property | Bitcoin | MINERAL |
|---|---|---|
| Hard Cap | 21M BTC | 21M MINERAL |
| Halving Period | 4 years | 28 days |
| Time to 50% mined | ~4 years | ~2 months |
| Burn Mechanism | No | Yes (buyback) |
| Staking Yield | No (PoW only) | Yes (ETH yield) |
| Mining Input | Electricity + Hardware | ETH |
MINERAL compresses Bitcoin's emission curve into a much shorter timeframe, with the added benefit of deflationary burns that Bitcoin doesn't have.