Document Type: Executive Economic Overview
Last Updated: November 2025
Status: Official Reference
Audience: Investors, Partners, Researchers, Validators, Builders
- Overview
- Token Utility
- Participants & Incentives
- Monetary Policy
- Reward Mechanics
- Distribution
- Why This Model Is Sustainable
- References
╔═════════════════════════════════════════════════════════════════════════════════════════╗
║ ║
║ MBONGO CHAIN ECONOMIC MODEL ║
║ ║
╠═════════════════════════════════════════════════════════════════════════════════════════╣
║ ║
║ FIXED SUPPLY ║
║ ──────────────────────────────────────────────────────────────────────────────────── ║
║ Total Supply: 31,536,000 MBO ║
║ Inflation: 0% (fixed forever) ║
║ Minting: None after genesis emission schedule ║
║ Governance: Cannot increase supply ║
║ ║
║ DEFLATIONARY MECHANICS ║
║ ──────────────────────────────────────────────────────────────────────────────────── ║
║ Base Fees: 100% burned ║
║ Slashed Stake: 100% burned ║
║ Net Effect: Circulating supply decreases over time ║
║ ║
║ CONSENSUS MODEL ║
║ ──────────────────────────────────────────────────────────────────────────────────── ║
║ Block Time: 1 second ║
║ Blocks Per Year: 31,536,000 ║
║ Reward Split: 50% PoS + 50% PoUW ║
║ Halving: Every 5 years (157,680,000 blocks) ║
║ ║
║ INITIAL BLOCK REWARD (Year 1-5) ║
║ ──────────────────────────────────────────────────────────────────────────────────── ║
║ Total: 0.1 MBO per block ║
║ To PoS: 0.05 MBO (50%) ║
║ To PoUW: 0.05 MBO (50%) ║
║ ║
╚═════════════════════════════════════════════════════════════════════════════════════════╝
| Metric | Value |
|---|---|
| Total Supply | 31,536,000 MBO |
| Inflation Rate | 0% |
| Block Time | 1 second |
| Annual Blocks | 31,536,000 |
| Initial Block Reward | 0.1 MBO |
| Halving Period | 5 years |
| PoS Share | 50% |
| PoUW Share | 50% |
┌─────────────────────────────────────────────────────────────────────────────────────────┐
│ MBO TOKEN UTILITY │
├─────────────────────────────────────────────────────────────────────────────────────────┤
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ GAS FEES │ │
│ │ ──────── │ │
│ │ • Execution gas: Transaction processing │ │
│ │ • Compute gas: PoUW task payments (GPU/TPU/CPU/FPGA/ASIC) │ │
│ │ • Storage gas: On-chain data storage │ │
│ │ • Network gas: Message propagation │ │
│ │ │ │
│ │ Base fee → BURNED │ │
│ │ Priority fee → Validator/Provider │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ STAKING │ │
│ │ ─────── │ │
│ │ • Validators: Minimum 50,000 MBO to participate in consensus │ │
│ │ • Delegators: Minimum 100 MBO to earn passive rewards │ │
│ │ • Security: Stake at risk (slashable for misbehavior) │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ COMPUTE TASKS (PoUW) │ │
│ │ ──────────────────── │ │
│ │ • Compute providers earn MBO for valid compute receipts │ │
│ │ • Users pay MBO for AI/ML, rendering, ZK proofs, and batch jobs │ │
│ │ • Compute fees support decentralized compute marketplace │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ GOVERNANCE & PROTOCOL UPGRADES │ │
│ │ ────────────────────────────── │ │
│ │ • Voting power from staked MBO │ │
│ │ • Protocol parameter changes │ │
│ │ • Network upgrades │ │
│ │ • Note: Governance CANNOT increase supply │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ SLASHING PENALTIES │ │
│ │ ────────────────── │ │
│ │ • Double-signing: 5% of stake │ │
│ │ • Downtime: 0.5% of stake │ │
│ │ • Invalid compute: 1,000 MBO fixed │ │
│ │ • ALL slashed MBO is BURNED (not redistributed) │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────────────────────────────┐
│ PARTICIPANTS & INCENTIVES │
├─────────────────────────────────────────────────────────────────────────────────────────┤
│ │
│ VALIDATORS (PoS) │ 50% of Block Rewards │
│ ═══════════════ │ │
│ │ │
│ Role: │ Reward Sources: │
│ • Stake MBO as collateral │ • Block reward share │
│ • Propose new blocks │ • Priority fees │
│ • Attest to block validity │ • Proposer bonuses │
│ • Participate in consensus │ │
│ │ Risk: │
│ Requirements: │ • 5% slash for double-sign │
│ • Minimum 50,000 MBO stake │ • 0.5% slash for downtime │
│ • 21-day unbonding period │ │
│ │
│ ─────────────────────────────────────────────────────────────────────────────────────│
│ │
│ COMPUTE PROVIDERS (PoUW) │ 50% of Block Rewards │
│ ════════════════════ │ │
│ │ │
│ Role: │ Reward Sources: │
│ • Perform useful computation │ • Block reward share │
│ • Submit verifiable receipts │ • Compute task fees │
│ • Contribute to chain security │ • Priority fees │
│ │ │
│ Requirements: │ Risk: │
│ • Compute hardware (GPU/TPU/CPU/FPGA/ASIC) │ • 1,000 MBO per invalid receipt │
│ • Stake optional (improves priority) │ • Reputation damage │
│ │
│ ─────────────────────────────────────────────────────────────────────────────────────│
│ │
│ DELEGATORS │ 20% of PoS Pool │
│ ══════════ │ │
│ │ │
│ Role: │ Reward Sources: │
│ • Delegate MBO to validators │ • Share of validator rewards │
│ • Support validator infrastructure │ • Proportional to delegation │
│ • Participate in security │ │
│ │ Risk: │
│ Requirements: │ • Shared slashing with validator │
│ • Minimum 100 MBO │ │
│ │
│ ─────────────────────────────────────────────────────────────────────────────────────│
│ │
│ DEVELOPERS │ Ecosystem Allocation │
│ ══════════ │ │
│ │ │
│ Incentives: │ Programs: │
│ • Ecosystem grants (milestone-based) │ • Hackathons (quarterly) │
│ • Bug bounties (up to 100,000 MBO) │ • Retroactive funding │
│ • Developer tools bounties │ • SDK/tooling grants │
│ │
│ ─────────────────────────────────────────────────────────────────────────────────────│
│ │
│ COMMUNITY CONTRIBUTORS │ Community Allocation │
│ ══════════════════════ │ │
│ │ │
│ Incentives: │ Programs: │
│ • Ambassador rewards │ • Content creation bounties │
│ • Documentation contributions │ • Regional community building │
│ • Governance participation │ • Education initiatives │
│ │
└─────────────────────────────────────────────────────────────────────────────────────────┘
| Participant | Reward Source | Share | Requirements |
|---|---|---|---|
| Validators | Block rewards + fees | 50% of total (80% of PoS) | 50,000 MBO stake |
| Compute Providers | Block rewards + fees | 50% of total | Compute hardware (GPU/TPU/CPU/FPGA/ASIC) |
| Delegators | Validator share | 20% of PoS pool | 100 MBO |
| Developers | Ecosystem grants | Milestone-based | Build on Mbongo |
| Community | Incentives pool | Per-epoch stream | Contribute value |
┌─────────────────────────────────────────────────────────────────────────────────────────┐
│ MONETARY POLICY │
├─────────────────────────────────────────────────────────────────────────────────────────┤
│ │
│ FIXED SUPPLY │
│ ════════════ │
│ │
│ • Total: 31,536,000 MBO (immutable) │
│ • No minting mechanism after emission schedule │
│ • Governance cannot increase supply │
│ • Mathematical guarantee: Σ(all MBO) ≤ 31,536,000 │
│ │
│ │
│ DETERMINISTIC ISSUANCE (10-Year Schedule) │
│ ═════════════════════════════════════════ │
│ │
│ Years 1-5: 0.1 MBO/block → 3,153,600 MBO/year │
│ Years 6-10: 0.05 MBO/block → 1,576,800 MBO/year │
│ Years 11+: 0.025 MBO/block → 788,400 MBO/year (and halving continues) │
│ │
│ │
│ BLOCK REWARD DECAY SCHEDULE │
│ ═══════════════════════════ │
│ │
│ Block │
│ Reward │
│ (MBO) │
│ │
│ 0.100 ┤████████████████████████████████████████ │
│ │ │ │
│ 0.050 ┤ └──────────────────── │
│ │ │ │
│ 0.025 ┤ └──────────── │
│ │ │ │
│ 0.012 ┤ └─── │
│ │ │
│ └────┬─────────┬─────────┬─────────┬─────────┬─────────┬─────────┬────▶ Years │
│ 5 10 15 20 25 30 35 │
│ │
│ │
│ ALL BURNS PERMANENTLY REDUCE SUPPLY │
│ ═══════════════════════════════════ │
│ │
│ • Base fees: Burned │
│ • Slashed stake: Burned │
│ • Invalid compute penalties: Burned │
│ • Net effect: Deflationary over time │
│ │
│ │
│ NO DISCRETIONARY MONETARY CHANGES │
│ ═════════════════════════════════ │
│ │
│ ✗ No emergency minting │
│ ✗ No governance-triggered inflation │
│ ✗ No Foundation override │
│ ✗ No manual supply adjustments │
│ │
│ The emission schedule is protocol-enforced and immutable. │
│ │
└─────────────────────────────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────────────────────────────┐
│ REWARD MECHANICS │
├─────────────────────────────────────────────────────────────────────────────────────────┤
│ │
│ PoS REWARDS (50% of Block Rewards) │
│ ══════════════════════════════════ │
│ │
│ Calculation based on: │
│ • Stake weight: More stake → larger share │
│ • Performance: Uptime and attestation rate │
│ • Proposer bonus: Extra reward for block proposal │
│ │
│ Distribution within PoS pool: │
│ • 80% to validators │
│ • 20% to delegators │
│ │
│ Formula: │
│ validator_reward = (stake / total_stake) × pos_pool × 0.80 × performance │
│ │
│ ─────────────────────────────────────────────────────────────────────────────────────│
│ │
│ PoUW REWARDS (50% of Block Rewards) │
│ ═══════════════════════════════════ │
│ │
│ Calculation based on: │
│ • Compute integrity: Valid receipts only │
│ • Work units: Measured compute cycles (normalized across hardware) │
│ • Performance: Verification success rate │
│ │
│ Formula: │
│ provider_reward = (work_units / total_work) × pouw_pool × quality_multiplier │
│ │
│ ─────────────────────────────────────────────────────────────────────────────────────│
│ │
│ SLASHING PENALTIES │
│ ══════════════════ │
│ │
│ ┌───────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ Offense │ Penalty │ Destination │ │
│ │ ─────────────────────┼───────────────────┼──────────────────────────────────│ │
│ │ Double-signing │ 5% of stake │ BURNED │ │
│ │ Downtime (>500 blks) │ 0.5% of stake │ BURNED │ │
│ │ Invalid compute │ 1,000 MBO fixed │ BURNED │ │
│ │ Repeated offenses │ Escalating │ BURNED │ │
│ │ │ │
│ └───────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ─────────────────────────────────────────────────────────────────────────────────────│
│ │
│ PRIORITY FEE ROUTING │
│ ════════════════════ │
│ │
│ Standard transactions: Priority fee → Block proposer (validator) │
│ Compute transactions: Priority fee → Compute provider │
│ Oracle messages: Priority fee → Attesters │
│ │
│ Base fee is ALWAYS burned regardless of transaction type. │
│ │
└─────────────────────────────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────────────────────────────┐
│ TOKEN DISTRIBUTION │
├─────────────────────────────────────────────────────────────────────────────────────────┤
│ │
│ TOTAL SUPPLY: 31,536,000 MBO │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ Category │ % │ MBO Amount │ Unlock │ │
│ │ ──────────────────────────┼───────┼──────────────┼────────────────────────────│ │
│ │ PoS Validators/Delegators │ 40% │ 12,614,400 │ Per-block emission │ │
│ │ PoUW Compute Providers │ 20% │ 6,307,200 │ Per-block emission │ │
│ │ Ecosystem Grants │ 15% │ 4,730,400 │ Milestone-based │ │
│ │ Foundation & Operations │ 10% │ 3,153,600 │ 4-year linear vesting │ │
│ │ Community & Incentives │ 10% │ 3,153,600 │ Per-epoch stream │ │
│ │ Early Contributors │ 5% │ 1,576,800 │ 4-year, 1-year cliff │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ │
│ UNLOCK MECHANISMS │
│ ═════════════════ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ VALIDATOR SET (60% of total) │ │
│ │ • PoS + PoUW combined │ │
│ │ • Unlocked per block as rewards │ │
│ │ • Immediate availability │ │
│ │ │ │
│ │ TEAM/FOUNDATION (10%) │ │
│ │ • 4-year linear vesting │ │
│ │ • No cliff (gradual release) │ │
│ │ • Time-locked smart contract │ │
│ │ │ │
│ │ ECOSYSTEM/COMMUNITY (25%) │ │
│ │ • Grants: Milestone-based │ │
│ │ • Community: Per-epoch stream │ │
│ │ • Multi-sig controlled │ │
│ │ │ │
│ │ EARLY CONTRIBUTORS (5%) │ │
│ │ • 1-year cliff │ │
│ │ • 4-year total vesting │ │
│ │ • Linear monthly after cliff │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ │
│ ALL UNLOCKS ARE LINEAR/NON-MANUAL │
│ ════════════════════════════════ │
│ │
│ • No discretionary releases │
│ • No manual override capability │
│ • Enforced by protocol/smart contract │
│ • Transparent and on-chain verifiable │
│ │
└─────────────────────────────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────────────────────────────┐
│ SUSTAINABILITY FACTORS │
├─────────────────────────────────────────────────────────────────────────────────────────┤
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ ✓ PREDICTABLE SUPPLY │ │
│ │ │ │
│ │ • Total supply known: 31,536,000 MBO │ │
│ │ • Emission schedule deterministic │ │
│ │ • No surprises or arbitrary changes │ │
│ │ • Enables long-term economic planning │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ ✓ STRONG DEFLATIONARY MECHANICS │ │
│ │ │ │
│ │ • Base fees burned every transaction │ │
│ │ • Slashing penalties burned │ │
│ │ • High usage = more burns = less supply │ │
│ │ • Network success directly benefits holders │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ ✓ GROWING DEMAND FOR COMPUTE │ │
│ │ │ │
│ │ • AI/ML compute demand growing 10x every 2 years │ │
│ │ • Mbongo captures this demand on-chain │ │
│ │ • More compute = more MBO needed │ │
│ │ • Growing demand + fixed supply = value appreciation │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ ✓ HETEROGENEOUS COMPUTE MARKET (PoUW) │ │
│ │ │ │
│ │ PoUW is designed as a heterogeneous compute market. Any hardware class │ │
│ │ (GPU, TPU, CPU, FPGA, ASIC, or future accelerators) can participate, │ │
│ │ provided it runs deterministic jobs and submits verifiable proofs. │ │
│ │ │ │
│ │ This ensures maximum supply-side participation and hardware diversity, │ │
│ │ while maintaining strict verification and economic guarantees. │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ ✓ HYBRID PoS–PoUW STRENGTHENS SECURITY │ │
│ │ │ │
│ │ • Two independent security layers │ │
│ │ • Attack requires controlling BOTH stake AND compute │ │
│ │ • Economically rational to participate honestly │ │
│ │ • Slashing makes attacks costly │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ ✓ NO HIDDEN MINTING OR DISCRETIONARY OVERRIDES │ │
│ │ │ │
│ │ • No admin keys can mint MBO │ │
│ │ • Governance cannot increase supply │ │
│ │ • No Foundation emergency powers over economics │ │
│ │ • Code is law—no exceptions │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ ✓ ALL ECONOMIC ACTIONS TRANSPARENT & ON-CHAIN │ │
│ │ │ │
│ │ • Every reward distributed on-chain │ │
│ │ • Every fee burned on-chain │ │
│ │ • Every unlock verifiable on-chain │ │
│ │ • Full transparency for auditors and researchers │ │
│ │ │ │
│ └─────────────────────────────────────────────────────────────────────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────────────────────┘
| Factor | Mechanism | Benefit |
|---|---|---|
| Predictable Supply | Fixed cap, known schedule | Long-term planning |
| Deflationary | Fee burning, slashing | Increasing scarcity |
| Growing Demand | AI compute marketplace | Utility-driven value |
| Hybrid Security | PoS + PoUW | Attack resistance |
| No Hidden Minting | Protocol-enforced limits | Trust and transparency |
| On-Chain Transparency | All actions verifiable | Audit-friendly |
For comprehensive information on each topic, refer to:
| Document | Description |
|---|---|
| token_intro.md | Introduction to MBO token |
| monetary_policy.md | Fixed supply, halving schedule, emission model |
| reward_mechanics.md | PoS/PoUW reward calculations, fee distribution |
| token_distribution.md | Allocation breakdown, vesting schedules |
| vesting_model.md | Unlock mechanics, cliff periods |
| incentive_design.md | Participant incentives, slashing model |
| compute_value.md | Heterogeneous compute economics, PoUW value |
| utility_value.md | MBO token utility across ecosystem |
| economic_security.md | Security model, attack economics |
| supply_schedule.md | 50-year emission projection |
| staking_model.md | Validator/delegator mechanics |
| fee_model.md | Gas structure, burn mechanics |
| governance_model.md | Governance scope and limits |
All economic parameters are defined in:
spec/tokenomics.md — Authoritative tokenomics specification
╔═════════════════════════════════════════════════════════════════════════════════════════╗
║ MBONGO ECONOMICS — QUICK REFERENCE ║
╠═════════════════════════════════════════════════════════════════════════════════════════╣
║ ║
║ SUPPLY REWARDS ║
║ ────── ─────── ║
║ Total: 31,536,000 MBO Block: 0.1 MBO (Year 1-5) ║
║ Inflation: 0% PoS: 50% (0.05 MBO) ║
║ Burns: Base fees + slashing PoUW: 50% (0.05 MBO) ║
║ Halving: Every 5 years ║
║ ║
║ STAKING SLASHING ║
║ ─────── ──────── ║
║ Validator: 50,000 MBO min Double-sign: 5% stake ║
║ Delegator: 100 MBO min Downtime: 0.5% stake ║
║ Unbonding: 21 days Invalid: 1,000 MBO ║
║ Destination: BURNED ║
║ ║
║ CONSENSUS VALUE DRIVERS ║
║ ───────── ───────────── ║
║ Block time: 1 second Fixed supply + burns ║
║ Blocks/yr: 31,536,000 Growing AI demand ║
║ Security: PoS + PoUW Utility (gas, stake, compute) ║
║ Finality: Economic Transparent economics ║
║ ║
╚═════════════════════════════════════════════════════════════════════════════════════════╝
This document provides a high-level summary of Mbongo Chain economics. For detailed specifications, refer to the linked documentation.