At Meta Earth, we strive to ensure long-term value growth through a carefully designed economic model. However, recently some users have raised this issue:
According to the MEC economic model, the first year of mining is expected to yield 5 billion MEC. However, since the launch of the genesis block on April 17, 2024, and to this day (almost 11 months), the current market turnover is less than 600,000 MEC. Is this sharp contrast a flaw in economic design or a carefully planned long-term value strategy!
This article will examine the economic principles underlying this phenomenon from three aspects: MEC issuance rules, circulation logic, and ecosystem incentives.
MEC issuance rules
● Fixed total supply, fair distribution
The total issuance volume of MEC is limited to 20 billion — this figure is fixed and will not increase based on market demand and supply.
10 billion is permanently locked: this portion of MEC corresponds one-to-one with the world population. Whenever a new ME ID user is added, Meta Earth provides that user with 1 MEC. However, this MEC is non-tradable and will not enter the market. Instead, it is used for daily staking rewards as UBI (universal basic income) provided to Meta Earth users.
10 billion for staking mining: the remaining 10 billion MEC will be distributed through staking mining. According to the economic model, 5 billion MEC are planned to be released in the first year, decreasing by 50% annually thereafter (e.g., 2.5 billion in the second year, 1.25 billion in the third year, etc.).
Theoretically, if all 5 billion MEC entered the market in the first year, it would create significant selling pressure, affecting price stability. However, the actual turnover is much lower than expected, reflecting a more complex economic logic.
Issuance ≠ Circulation
Although MEC output is entirely dependent on staking mining, its actual turnover is significantly lower than the theoretical output. This is primarily due to the following reasons:
● Key mechanisms limiting circulation
Only ME ID or MEC holders can participate in mining: Only users with ME ID or MEC holders can participate in staking mining. For users who have not registered ME ID, the MEC they could mine is directly deposited into the treasury of the Meta Earth Global Network and does not immediately enter the market.
The user base of ME ID is still in its early stages: since the launch of the genesis block, the total number of ME ID users has exceeded 420,000. However, compared to the target of 10 billion global users, this is still in the early stages. Thus, the majority of MEC mined in the first year remains unactivated and is stored in the treasury of the global Meta Earth network.
The relationship between the circulation of MEC and ecosystem incentives
Although the actual turnover of MEC is much lower than its production, users can still acquire MEC and participate in the platform's development through a number of carefully designed ecosystem incentive mechanisms. The main ways to earn MEC include:
ME ID Basic staking rewards
Each ME ID owner receives 1 MEC at a constant rate for free.
Staking yield: 25% per annum, 0.25 MEC additional rewards per year.
2. Registration rewards and monthly bonuses
Monthly bonus: during the beta phase, ME ID users can claim 0.1 MEC per month.
Registration rewards: during the beta phase, users who register within 25 days of the month can earn an additional 0.1 MEC.
Annual income: 2.4 MEC per user.
3. Fixed-term savings (locked for 360 days)
Users participating in MEC fixed-term savings can receive an annual income of 50%.
4. Referral rewards
For each successfully invited new user who passes the KYC procedure, the referrer earns 0.1 MEC.
There are no limits on referral rewards — the more invitations, the higher the earnings.
5. Community rewards in the network
New users entering the node network community for the first time can receive 0.01 MEC as a reward.
6. Node incentive program
Participation in the Meta Earth node community reward program brings additional MEC rewards.
7. Official giveaways at events
Users participating in official events can receive MEC rewards.
All MEC rewards obtained through the above methods are freely tradable, which is a key factor in the current circulation of MEC. Previously we assessed MEC turnover for the first year. For detailed information, refer to: MEC Tokenomics: A Brief Analysis of the Meta Earth Token Economy Model
MEC long-term value strategy
The MEC economic model achieves a delicate balance between high issuance and low circulation. While 5 billion MEC are theoretically produced in the first year, due to:
A significant portion of MEC is deposited in the Treasury of the Global Meta Earth Network.
The user base of ME ID has not yet realized its full potential.
Staking and incentive mechanisms that limit market circulation.
The current market turnover remains below 600,000 MEC. This strategy ensures fairness in the early stages of the ecosystem, avoids excessive short-term selling pressure on the market, and reserves sufficient liquidity for the future growth of the ecosystem.
As the Meta Earth ecosystem further develops, we believe that the long-term value of MEC will gradually be recognized, allowing each ME ID user to receive their share of dividends from the growth of Meta Earth.
About Meta Earth
Meta Earth (ME) is based on a modular, high-performance, infinitely scalable multidimensional integrated value creation base network — ME Network, which supports the needs of traditional industrial applications for high-parallel processing of big data.
And thanks to the encrypted DID (decentralized identifier) system — ME ID and ME Pass, which can effectively protect users' confidential data, as well as a co-construction and co-governance mechanism that can fully reflect personal sovereignty and equality for all, along with an economic model that can guarantee UBI (universal basic income) without any distinctions, Meta Earth is fully committed to enhancing happiness for a better life and maintaining ecological balance to promote sustainable development.
If you want to receive more airdrops or rewards, download ME Pass and go through KYC. More details on the poster! 👇👇👇
