Generos operates on a unique economic model designed to reinforce the cycle of generosity and ensure the stability and growth of its ecosystem. This guide clarifies the mechanisms at play: how gem revenue supports the value of Gencoin, the specifics of the Seed Redemption system, the crucial role of the Redemption Treasury, and the Vault Algorithm's contribution to this cycle.
Gem Tier: Ruby
Gem Price: $5
Redemption Treasury Allocation: $3.75 USDC
Gencoin Generated per Vault Cycle: 10 GGC
Gem Tier: Citrine
Gem Price: $10
Redemption Treasury Allocation: $7.50 USDC
Gencoin Generated per Vault Cycle: 20 GGC
Gem Tier: Topaz
Gem Price: $25
Redemption Treasury Allocation: $18.75 USDC
Gencoin Generated per Vault Cycle: 50 GGC
Gem Tier: Emerald
Gem Price: $50
Redemption Treasury Allocation: $37.50 USDC
Gencoin Generated per Vault Cycle: 100 GGC
Gem Tier: Aquamarine
Gem Price: $100
Redemption Treasury Allocation: $75 USDC
Gencoin Generated per Vault Cycle: 200 GGC
Gem Tier: Tanzanite
Gem Price: $250
Redemption Treasury Allocation: $187.50 USDC
Gencoin Generated per Vault Cycle: 500 GGC
Gem Tier: Amethyst
Gem Price: $500
Redemption Treasury Allocation: $375 USDC
Gencoin Generated per Vault Cycle: 1000 GGC
Gem Revenue and Gencoin Value
In Generos, purchasing gems is more than a gesture of generosity; it's a key economic activity that bolsters the platform's ecosystem:
Gem Purchases: Buying a gem, such as a Ruby for $5, is not just a gesture of generosity; it's a financial injection into Generos. A significant portion (~80%) of this revenue, $3.75 from a Ruby gem purchase to be exact, is allocated to bolster Gencoin's value. This allocation is relative across other Gem Tiers, ensuring that higher-tier gem purchases proportionally contribute more to the platform’s economic health.
Revenue Allocation to Redemption Treasury: This portion of the gem revenue is converted into USDC and deposited into the Redemption Treasury. This action underpins the monetary value of Gencoin, ensuring a stable and transparent valuation pegged to real-world financial assets.
Gencoin’s Stable Backing: The Redemption Treasury's role is to guarantee that Gencoin's circulation is always fully backed by USDC reserves, offering a stable and secure foundation for the token's value within the Generos ecosystem.
The Seed Redemption System
The Seed Redemption system is a cornerstone of the Generos economic model, rewarding users for their contributions and engagement:
Earning Seed: Users earn Seed through various engagement activities within the platform, reflecting their participation and contributions.
Redeeming Seed for Cash: The redemption process highlights the flexibility and rewards of the Generos ecosystem:
50% Conversion: Every redeemed Seed converts 50% of a user's Gencoin balance into Cash. This allows users to safeguard their value, offering protection against Coin Burn.
10% Auto Contribution: As part of the redemption process, 10% of the user’s Gencoin balance automatically goes to supporting chosen organizations. This seamless integration of philanthropy boosts the user’s Impact Stat, reflecting their commitment to making a difference and enhancing their reputation within the community.
The Vault Algorithm
The Vault Algorithm is essential for distributing Gencoin within Generos, based on the cycling of vaults:
Vault Cycling for Gencoin: The algorithm facilitates the distribution of Gencoin exclusively through the process of vault cycling. When a vault is filled with the required gems and cycles, it generates Gencoin, directly rewarding users for their engagement and support of the ecosystem.
Direct Impact on Earnings: Unlike Seed, which is earned through engagement and contributions, Gencoin distribution is tied strictly to the activity of vault cycling, emphasizing the importance of active participation and community support in unlocking economic rewards.
The Role of the Redemption Treasury
The Redemption Treasury is vital for ensuring the economic integrity and sustainability of Generos:
Ensuring Gencoin Stability: By maintaining USDC reserves that match or exceed Gencoin in circulation, the treasury stabilizes Gencoin’s value, fostering trust in the platform’s token.
Promoting Transparency and Trust: The blockchain’s inherent transparency allows all users to verify the USDC backing of Gencoin, reinforcing confidence in Generos’ economic model.
Facilitating Generosity: The treasury supports Generos’ mission to reward generosity, ensuring the platform can sustain its cycle of rewarding engagement and contributions.
Conclusion
Generos’s economic model is meticulously designed to reward generosity, sustain the platform’s ecosystem, and ensure stability and transparency. Through strategic gem revenue allocation, the Seed Redemption system, and the Vault Algorithm's efficient Gencoin distribution, coupled with the Redemption Treasury's stabilizing role, Generos creates a rewarding environment. This ecosystem encourages continuous participation, fostering a community where generosity translates into tangible rewards and meaningful impact.
