⏫Halving

Within the Mega Maker ecosystem, the concept of Halving plays a critical role, adapting a well-established principle in the domain of cryptocurrencies to regulate the issuance of rewards and prevent market saturation with an excessive long-term supply of tokens. This mechanism is imperative to preserve the sustainability and economic balance of the ecosystem, ensuring an equitable distribution of value over time.

Halving Mechanism and Activation

The initiation of Halving phases in Mega Maker is determined by the amount of Maker Flip retained in the rewards contract. Initially endowed with 45 million tokens, corresponding to 90% of the total supply, the rewards contract sees its balance decrease as rewards are allocated to contributors. As this balance diminishes, the Halving mechanism is instated, influencing subsequent contributions.

Halving Phase Structure

Halving is strategically segmented into multiple phases, each characterized by a specific remaining balance of tokens in the contract and a corresponding reward multiplier. For example:

• In the initial phase (phase 0), with the entirety of the 45 million tokens available, the multiplier is set at 3.0x.

• As the balance progressively reduces, transitioning through subsequent phases (1 to 10), the multiplier decreases proportionally, reaching 2.0x when the balance stabilizes at 68.40%.

Phases	TOTAL REWARDS POOL	Amount in MKF	REWARDS Multiplier
0	100,00%	45.000.000	3,0 X
01	90,00%	40.500.000	2,9 X
02	87,60%	39.420.000	2,8 X
03	85,20%	38.340.000	2,7 X
04	82,80%	37.260.000	2,6 X
05	80,40%	36.180.000	2,5 X
06	78,00%	35.100.000	2,4 X
07	75,60%	34.020.000	2,3 X
08	73,20%	32.940.000	2,2 X
09	70,80%	31.860.000	2,1 X
10	68,40%	30.780.000	2,0 X

Halving Implications on New Contributions

It's crucial to emphasize that Halving affects only new contributions, leaving pre-existing contracts intact. Thus, a user in the midst of a contract with a previously established reward multiplier of 3x will continue to receive their rewards as agreed until the conclusion of the contractual period of 20 or 12 months.

Halving's Relevance to Mega Maker

Halving is an essential pillar in the architecture of Mega Maker and the FLIP Protocol, balancing the initial attractiveness of the project to capture market with maintaining a sustainable equilibrium that ensures the long-term stability of the token supply. This balance is vital for preserving an upward trajectory in the token's value, harmonizing initial momentum with future sustainability.

Thus, Halving acts as a strategic regulator, modulating the reward issuance rate in line with the amount of tokens in circulation. This adjustment is crucial to prevent the dilution of Maker Flip's value due to an overabundance of tokens, maintaining an attractive value proposition for contributors and the stakeholders' confidence in the project.