Fungible Credits

Fungible ecoCredit Tokenomics

Mathematical Model

Variables:

• C: Market dollar value of the incoming carbon credit in dollars.

• V_pool: Total dollar value of the pool before adding the new credit.

• N_tokens: Total number of tokens in circulation before adding the new credit.

• N_new: Number of new tokens to be minted for the incoming credit.

• V_new: New total dollar value of the pool after adding the new credit.

Equations:

New Pool Value: V_new = V_pool + C

Token Minting: For the first deposit, when V_pool = 0, mint tokens equal to C. Otherwise, calculate the number of new tokens based on the current token value: N_new = C / (V_pool / N_tokens)

Update Total Tokens: N_tokens = N_tokens + N_new

Scenario

Scenario	User	Credit Value	Initial Pool Value	Tokens Before Deposit	New Tokens Issued	Pool Value After Deposit	Total Tokens After Deposit
1	Alice	$100	$0	0	100	$100	100
2	Bob	$50	$100	100	50	$150	150
3	Market	Price Adjustment (+20%)	-	$150	150	-	$180
4	Charlie	$60	$180	150	50	$240	200

Scenario 1: Alice deposits, pool starts at $0, 100 tokens are issued. Scenario 2: Bob deposits $50, pool is $100, 50 more tokens are issued. Scenario 3: Market prices increase by 20%, pool value goes to $180, no new tokens issued. Scenario 4: Charlie deposits $60, pool increases to $240, 50 new tokens are issued.