Abstract

Mycel Network is a decentralized network consisting of node operators. This source describes the mint and burn mechanism of the network. Mycel Network's incentive mechanism consists of network usage-based Proof of Work (PoW) and a network usage-based base fee (burn mechanism). This mechanism takes good care of computer resource providers, who are the node operators.

Base fee

Calculate the base fee to be burned based on the difference between the target resource usage (NetworkUsage) and the actual resource usage.

NewBaseFee = 
    OldBaseFee * 
    (1 + a * (usedUsage - targetUsage))

a == 1/8
InitialOldBaseFee == 1

Reward

Calculate node-specific rewards based on the BaseReward, adjusted according to the work performed.

Reward = 
    BaseReward(p) * 
    { 0.5 * TxofCreateNode(p) / TxofCreateNetwork(p)} *
    { 0.3 * TxofTransferNode(p) / TxofTransferNetwork(p)} *
    { 0.15 * TxofStoreNode(p) / TxofStoreNetwork(p)} *
    { 0.05 * VerifyTxNode(p) / VerifyTxNetwork(p)}

Base reward

BaseReward(p) = 
    BaseReward(p-1) * 
    [1 + b * (NetworkUsage(p) - TragetNetworkUsage) / TargetNetworkUsage]

TargetNetworkUsage: 50%
b == 1/8

• BaseReward(p): Base Reward for the current period p
• BaseReward(p-1): Base Reward from the previous period
• b: Adjustment coefficient (1/8)
• NetworkUsage(p): Network usage rate for the current period p
• TargetNetworkUsage: Target network usage rate (50%)

Period

2 weeks

Work type

TxofCreate: The act of creating a Transferable Account.
TxofTransfer: Changing the owner of a Transferable Account.
TxofStore: Storing data held by other nodes.
VerifyTx: Verifying whether the Proof sent to the MPC account protocol matches the node’s transaction.

Work weight

TxofCreate: 50%
TxofTransfer: 30%
TxofStore: 15%
VerifyTx: 5%

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Simulation Setup

To run the simulation described above, follow the steps below to set up your environment and execute the simulation.

Setup Instructions

1. Clone the repository: First, clone this repository to your local machine

   git clone https://github.com/mycel-labs
   mechanism.git
   cd mechanism

2. Install the required dependencies: Use pip to install the necessary Python packages listed in requirements.txt:

   pip install -r requirements.txt

   Make sure you have Python 3.7+ installed on your system.

3. Run the simulation: Once the dependencies are installed, you can execute the simulation script, which calculates the base fee and rewards, and visualizes the results.

   python sim.py

This will run the base fee and reward calculations for the specified periods and display the results using matplotlib.

4. Simulation Output: The simulation will generate output that includes the calculated BaseFee and Rewards for each period. You will also see a plot of the fee adjustments and reward distributions over time.