Tokenomics

$MAXX is the core token of Ethermax

Supply Cap and Distribution

Ethermax is capped at 420 million tokens, with distribution driven by a geometric sequence:

$$S = \sum_{i=0}^{\infty} R_0 \cdot Nh \cdot \left(\frac{1}{2}\right)^i = 420,000,000$$

Where:

• ( S ): Total $MAXX supply

• ( R0 ): Initial block reward

• ( Nh ): Number of blocks per halving cycle

• ( i ): Halving cycle index

Our protocol guarantees a strict 420 million $MAXX cap on total minted tokens, including burned amounts, ensuring total supply never exceeds the limit.

Burn Mechanism and Referrals

Ethermax fuels a deflationary system and dynamic network growth through:

• Burn Mechanic: 90% of all in-game purchases are permanently burned, reducing total supply over time.

• Referral Rewards: 2.5% of block rewards are allocated to referrers players, driving expansion and community engagement.

Halving Schedule

The halving mechanism ensures limited token supply, fostering scarcity and long-term value stability. The block reward starts at 50 $MAXX and halves every 1,296,000 blocks, approximately every 30 days with an average block time of 2 seconds on Base.

Block Emission Formula

$$Rb(n) = R0 \cdot \left(\frac{1}{2}\right)^{\lfloor n / Nh \rfloor}$$

Where:

• ( R0 = 50 ): Initial emission rate ($MAXX per block)

• ( n ): Current block number

• ( Nh = 1,296,000 ): Halving interval in blocks

Proof-of-Work (PoW)

Players power up their hashpower by deploying miners. Mining rewards are distributed every block, proportionally to each player’s share of the network hashrate.

Hashpower Contribution

Let:

• ( hi ): Hashpower of player ( i )

• ( H ): Total network hashpower

• ( Rb(n) ): $MAXX emission rate per block

The $MAXX reward for player ( i ) per block is:

$$R_i = \frac{h_i}{H} \cdot Rb(n)$$

Proof-of-Stake (PoS)

Players can participate in the network by deploying node validators and staking tokens to earn rewards. Staking rewards are distributed periodically based on each player’s staked amount, validator activity, and the network’s dynamic Annual Percentage Yield (APY). The APY adjusts based on total staked tokens and token supply, incentivizing early adoption and sustained participation.

Staking Reward Contribution

Let:

• ( s_i ): Staked amount of player ( i ) in a validator

• ( t ): Time elapsed since last reward claim (in years)

• ( A ): Current network APY (as a decimal, e.g., 4.2 for 420%)

The $MAXX reward for player ( i ) per validator is:

$$R_i = s_i \cdot A \cdot t$$

Gas Fees

Power Generators in each player’s mining room (except the starter) consume Gas to drive the energy-intensive $MAXX mining process. A small Gas fee percentage is applied when players claim mined $MAXX tokens to sustain the ecosystem and ensure efficient reward distribution.

Mining Pools

Players can freely create Mining Pools using the ERC-4626 standard, pooling hashrate to boost $MAXX mining efficiency. These tokenized vaults distribute rewards proportionally, empowering new or smaller-scale players to compete effectively while ensuring secure and standardized pool management.

Proof-of-Train (PoT)

Players contribute to network consensus by training monsters in Battle Nexus, simulating validation through level-based computations. Higher levels enhance nexus security and reward distribution.

Battle Nexus

Battle Nexus merges combat mechanics with tokenomics, linking mining/staking power to monster battles.

• Mining Hashrate increase Energy Regeneration Speed, determining how quickly monsters recover energy for battles.

• Power Generator Level sets Energy Storage Capacity, capping maximum energy reserves.

• Active Staking Nodes determine Number of Healing Chambers and Egg Incubators, enabling monster recovery and breeding.

Deploy Function

Players deploy trained monsters to Battle Nexus, earning passive rewards.

Let:

• ( l_j ): Level of monster ( j )

• ( t ): Time since deployment (in hours)

$MAXX reward per monster ( j )

$$R_j = l_j \cdot t$$

Total rewards claimed periodically, integrating with PoW/PoS emissions.