Emission distribution

Currently, we emit all tokens directly to a pool. For mainnet launch, we will also implement swap functionality and distribution to people running a satellite receiver or a cell/map builder app. This allows the tokens to enter the market, and begin to flow. The swap functionality will allow people to swap their Endcoin for Gaiacoin and vice versa, but will not allow people to stake in the pool.

This pool therefore gives us: $$ SST + market sentiment = Pulse on Climate $$

This is a realtime value that can be displayed to show the current state of the planet and our opinion as a society towards it rolled into one data source.

Emission period

Similar to index funds, we will update the SST value once a day. This gives us the following benefits which we think align with our mission:

  1. Simplicity and Transparency: The daily emission of tokens based on SST values introduces a straightforward and transparent mechanism for token generation. Users and investors can easily understand the criteria for token issuance, which is based on measurable, external environmental data. This transparency can build trust in the system.

  2. Stabilization of Token Value: Emitting tokens once a day based on SST stabilizes the token's value by reducing its exposure to short-term speculative trading and market volatility. The value of the tokens becomes more closely tied to the actual changes in SST, rather than speculative market movements, which could make the tokens more attractive to long-term investors interested in environmental trends.

  3. Cost Efficiency: A system that operates on a set schedule (once daily) can optimize its computational and operational resources, potentially lowering the costs associated with token emission. These savings can be passed on to the community or reinvested into the project, for example, by enhancing the system's data accuracy or contributing to ocean conservation efforts.

  4. Reduced Market Impact: By aggregating transactions and emissions to a once-daily event, the potential market impact of large trades or emissions is minimized. This can help maintain a more stable trading environment for the tokens, benefiting all participants by reducing price manipulation and extreme volatility.

  5. Ease of Investment Decision Making: Investors can make more informed decisions without the pressure to react to minute-by-minute changes. Knowing that token emissions are tied to daily SST values allows investors to research and understand the environmental factors that might influence the token's value, leading to more strategic, informed investment decisions.

  6. Mitigates Timing Risk: The daily update mechanism mitigates risks associated with timing in the market. Investors focus on the longer-term trends in SST values and their implications for token emissions, rather than attempting to time the market for short-term gains.

  7. Alignment with Environmental and Long-term Investment Strategies: By linking token emissions to SST values, the system naturally aligns with long-term environmental monitoring and conservation goals. It offers a novel way for investors to engage with climate-related issues, supporting a sustainable investment strategy that looks beyond immediate financial returns to consider broader environmental impacts.

For such a system to be effective, it's crucial to ensure the accuracy and integrity of the SST data used for token emission, incorporating multiple data sources and verification mechanisms to prevent manipulation and ensure reliability. Additionally, clear communication about how SST values translate into token emissions can further enhance transparency and trust in the system. Hopefully this whitepaper has shown that this is our ultimate goal.