7. The Deflationary Token Mechanism

How It Works

• Token Burn:


Every processing cycle, 10% of the GNUS tokens used in the payout are burned (removed from circulation).

• Commission:


Genius Ventures also takes a 10% commission from the payout.

• Net Effect:


The circulating supply of GNUS tokens decreases over time, which—assuming constant or increasing demand—drives up the value per token.

Benefits for Node Operators

• Increased Token Value:


Even though the hourly payout remains nominally at $0.005, the deflationary burn means that if tokens are held rather than immediately converted, their value increases.

• Long-Term Appreciation:


For example, if the token price increases from $3.40 on day one to $25.80 after one year (a 7.59× increase), the effective hourly payout in USD becomes:

0.005 × 7.59 ≈ $0.0379 per hour

• Incentive to Hold:


Conversion fees (a total of 3.5%) further discourage immediate conversion, incentivizing operators to hold tokens and benefit from long–term appreciation.