> For the complete documentation index, see [llms.txt](https://bmv.gitbook.io/mundi-token-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bmv.gitbook.io/mundi-token-whitepaper/economic-model/tokenomics.md). # Tokenomics Tokenomics includes all activities that deal with a coin or token in some way and covers all elements of a cryptocurrency's creation, management, and sometimes removal from a network. The main benefit of tokenomics is that it provides a more complete analysis of how coins work in their respective networks. Tokenomics is an important part of the crypto-space and all of its underlying dynamics so it´s critical to understand the different aspects of tokenomics: {% tabs %} {% tab title="Asset Valuation" %} Process of determining the value of a coin or token. This is especially useful for investors who want to purchase new coins. If they can estimate how much a coin will be worth in the future, it might be easier to decide whether or not its price is worth investing in now. Coin valuation is also important for traders who have made a significant investment in a coin, and want to know if its price is going up or down. {% endtab %} {% tab title="Inflation" %} Rise in the general level of prices for goods and services in an economy. Inflation can also occur when people expect prices to fall, therefore changing their preference from wanting money now versus later. Inflation occurs when the supply of money is larger than the total output of an economy. Also known as "price inflation." {% endtab %} {% tab title="Deflation" %} A decrease in the general level of prices for goods and services. This occurs when consumers and entities anticipate falling prices, and therefore decide not to buy more now and wait for these items become more affordable. Deflation occurs when the supply of money is smaller than the total output of an economy. Also known as "price deflation." {% endtab %} {% tab title="Supply-and-demand elasticity" %} If a coin has high supply-and-demand elasticity, its price will be more affected by changes in demand relative to its supply. This means that if demand for a particular coin rises, the coin will experience more positive price action ($$) than if demand for the same coin fell. Supply and Demand Elasticity = (% change in quantity supplied) / (% change in quantity demanded). {% endtab %} {% endtabs %} {% tabs %} {% tab title="Community Rewards" %} When a coin has a significant community, it can play a role in working to improve the coin's fundamentals. This is an example of market-based governance that has the potential to increase the price of a coin because it's an indicator of trust in the network. {% endtab %} {% tab title="Pump and Dump Schemes" %} A pump-and-dump scheme is when someone buys a large amount of a particular coin, which increases its value at first. Once other investors notice the price going up, they might buy some as well. This can create a "hype" where everyone is buying the coin, leading to its price going even higher. Eventually, everyone who bought some would sell it back at a high price, which makes them profit from buying low and selling high. In this way, pump-and-dump schemes can cause a coin's price to be artificially inflated, and it will crash back down when all of its investors start selling off their coins. {% endtab %} {% endtabs %} ### **BMV Utility Token** Utility tokens are one of the types of cryptographic tokens. They are tokens that give their holders access to a blockchain-based product or service. The asset they represent is a certain level of access to a service or product that the holder can obtain by redeeming it. For example, Matic or Ether can be exchanged for access to decentralized applications (dApps) or to pay for smart contracts to be executed on the Polygon blockchain. The Ethereum and Smart Contract became more popular as the creation of dapps grew exponentially, usually in the form of ICOs. The main characteristic of a Utility Token as offered by the ICOs is that it provides access to some kind of decentralized application (the so called “utility”) and its value is based solely in the initial offering and subsequent transactions among private individuals. The main difference of our Token to others is that we have substance to back it. The already existent and used Forest Credits, which provides access to the offsetting of the environmental footprint for businesses and individuals that choose to do so. BMV carbon asset tokens operates through cyclic token economy, using ERC-20 utility tokens knowns as **MDTCoins or Mundi Tokens** for services liquidation, as well and governance. {% hint style="success" %} **Checkpoint:** MDTCoins will be the value exchange instrument for all transactions within the platform which represents a synthetic tradable UCS asset. {% endhint %} **The total number (cap) of MDTCoins economy will not be established.** Minting (current and total supply) will occur automatically in response to the core certification business and following business strategy based on market demand and financial incentives. On Volume Balance analysis will be checked in order to maintain economy inflation not raising a starting level between 10-20%. #### Token specifics * Symbol: **MDT** * Name: MundiToken or MDTCoin * MDT Identity * Blockchain: Polygon * Standard: ERC-20 * Profile: Utility Token * Decimals: 2 * Description: This utility token can be later used to purchase a good or service offered by Originis. The issuing of MDT will be 100.000.000 (softcap) supply tokens MDT will be deployed on the Polygon Blockchain following the ERC-20 standards. ### Governance tokens DApps are typically designed to be self-sufficient and not reliant on a central authority. However in practice decisions often need to be made about changes in the operation of DApp and those changes need to be implemented. Many DApps solve this through the use of admin keys, which allow certain individuals to update the underlying smart contracts. However this introduces security risks and also undermines a DApp’s level of decentralization, which can have regulatory consequences. A common solution is to allow holders of a DApp’s governance tokens to vote on key decisions. These tokens are typically issued to users of the DApp, based on their level of activity. A smart contract-based decentralized autonomous organization (DAO) is established as part of the DApp, which executes the governance decisions of the token holders — removing part of the need for “admins”. Governance tokens will be distributed following a pre-set MDTCoin stakers rele (to be determined). These tokens may be tradeable on traditional exchanges (including DeXes), with their value presumably linked to the ability to influence the operation of the DApp, but still free to market and not tied to BMV business financial results or MDTCoin pricing. #### Token specifics * Symbol: **MDTG** * Name: MundiTokenGovernance or MDTGovCoin * MDTG Identity * Blockchain: Polygon * Standard: ERC-20 * Utility: Governance Token * Decimals: 0 * Description: Governance token can be later used to vote over projects, protocol or business decisions to drive the direction of Brasil Mata Viva Consortium. No maximum specified (light cap) token supply MDTG. The token will be coded on the Polygon Blockchain following the ERC-20 governance token functions standards. ### Initial Coin Offering (ICO) Our Initial Coin Offering presents the opportunity for accessing an environmental asset, backed by financial assets, which has a real, ‘bricks-and-mortars’ value, through a digital and secure environment. Every Token holder will be able to access the platforms where the UCSs are deposited and offset their impact easily. In our case, the ICO is based on a smart contract, giving investors access to the Tokens after ETH or StableCoins of fiat Euro (€), US or BRT currency purchases. The token will rely on the Ethereum Network, the most well established and used smart contract technology so far. The initial token sale process includes the issuing of Simple Agreements for Future Tokens (SAFT) specified at [Legal Considerations](https://github.com/MundiToken/bmv-whitepaper/blob/main/economic-model/broken-reference/README.md) section, followed by and Initial Token Sale to distribute **MDTCoins** (see [The Token Offering](/mundi-token-whitepaper/legal/the-token-offering.md)) to buyers. The revenue of the sales will be finally credited in the Issuer accounts managed by BMV, where it may be converted in ETH, fiat or Stable Coin (€), depending on the issuers prefference. The **MDTCoins** purchased will generate revenue for the BMV Participants and is planned to be used to support the global operations structure: 1. The expansion of the capacity and customization of the registry platform to accommodate other international environmental assets; 2. Improvements in the physical structure of the European branch, as well to support required technical and legal fees and; 3. R\&D of methodologies to fit European ESG demands. 4. Viability of the Projects which conciliate the keeping of native forest with financing of equipment and input for sustainable production; 5. Development of communities in the areas comprehended within the Projects, e.g. education development; professional and cultural exchange; scholarship within the partnership between UNESP and Instituto Politécnico de Coimbra (and other joining institutes); knowledge and technology exchange in order to qualify young professionals in Sustainable Development and Production; 6. Building the agile acceleration for new functionalities of the BMV Dapp and smart contracts engine, marketing presence and building the partners and customers community that leverages its growth and liquidates its token. {% hint style="info" %} **Important to know:** Ten percent of the initially minted **MDTCoins** will be available for distribution to interested parties during the BMV **Initial Token Sale** (100,000) which will be exchanged for other currencies, while a remaining will be available a Secondary future Sale. {% endhint %} The final sale price of **MDTCoins** during the ICO is not pre-determined. Part of the income from the Token Sale by the BMV might fund the development of a **MDTCoin** a wallet engine as well. This wallet will manage customers ESG NFTs certifications, conversion between **MDTCoins,** UCS operations, Fiat Currencies, other Cryptocurrencies, payments, liquidation, staking, etc. The wallet may function as an independent subsidiary of BMV. In order to allow the operation liquidity for the exchange process, BMV will be funded with 500.000 of **MDTCoins**(\~0.02% of total Tokens available). BMV will maintain 4.500.000 **MDTCoins** will be committed to the development of market Applications committed to use **MDTCoins** as their unique value exchange instrument. An example description of such DAPP (Distribuited Application) can be found on the accompanying documentation of this White Paper. These tokens will be also used to support the **MDTCoins** exclusive operations education sites, videos, blogs and social media posts, marketing as well as broaden the carbon credit economic spectrum. ### Initial Token Sale The Initial Token Sale for MDTCoin may follow an Interactive mechanism as described by Teutsch and Buterin. Price of acquisition will be determined by the final valuation of the token at the end of the sale as determined by market demand. Nevertheless, significant savings will be obtained by early contributors, particularly in the SAFT phase, with up to 40% discounts for initial investors when compared to a Secondary Sale (I-ICO model), and subsequent discounts weaning down by the end of the Token Sale process (see [ICO and Offseting](/mundi-token-whitepaper/economic-model/ico-and-offseting.md) for futher details on the process). {% hint style="info" %} **Important to know:** The lowest price at which a MDTCoins will be able to be obtained is at an equivalent of R$ 175.00 per token, during the limited SAFT offering of the BMV Consortium {% endhint %} | Item | Definitions | MDTCoins | % | | ------------------- | ------------------------------------- | --------------- | ------- | | SAFT and Token Sale | Initial Token Sale - Discount applied | 10.000.000 | 10 | | Secondary Sale | Interactive-ICO - Market capped price | 5.000.000 | 5 | | BMV Operations | Self | 5.000.000 | 5 | | Reserves | Not minted | 800.000.000 | 80 | | **Total** | **CAP** | **100.000.000** | **100** |

Token distribution

### Secondary Token Sale through conventional marketplaces In this model, we wish to achieve a market equilibrium through buyer interactions. Buyers not only submit bids for tokens but may also voluntarily withdraw their bids after committing them to the sale (within certain limits). In addition, each buyer submits to the crowdsale smart contract a valuation table which maps total sale amounts to the buyer’s contribution amount. The smart contract continuously and automatically withdraws bids according to the present bids and valuation tables. Our implementation introduces incentives which enable the smart contract to manage the complex operations of adding, deleting, and finding the minimum value in a list as well as identifying a subset of entries whose sum exceeds a target value. **The sale wil represent a 5% of the total economy (soft cap) based on** [**Balance & Hedging**](/mundi-token-whitepaper/economic-model/balance-and-hedging.md) **policies.**