User-Based Halving Mechanism

To ensure that the value of Freedom Coin (FC) grows in line with the expansion of the network, Unich Network applies a User-Based Halving Mechanism or Scale-Based Scarcity Mechanism. Unlike Bitcoin, which reduces supply over time, Unich Network uses user milestones as the key metric. This approach ensures that asset scarcity always evolves together with real market adoption. This model directly affects the Base Earning Rate.

The base earning rate gradually decreases as the community grows through different stages. This creates a significant advantage for early adopters - users who believed in and contributed to the network from its earliest days.

Specifically, the Base Earning Rate reduction schedule is fixed as follows:

Members	Base Earning Rate (FC/day)
0 – 8 million	1 FC/day
8 million – 80 million	0.5 FC/day
80 million – 800 million	0.25 FC/day
> 800 million	0 FC/day

Economic Impact

• Protection of early participants’ benefits: This mechanism clearly quantifies the value of early participation. Users who join when the network is still small can accumulate value at twice the rate of later stages, and up to four times faster compared to when the network reaches large scale. This fairly rewards early contributors who helped build the foundation and trigger network effects.

• Increasing scarcity as the network scales: As the community expands, access to and accumulation of FC becomes increasingly limited, helping control supply dilution during periods of rapid user growth. Once the network reaches 800 million users, the Base Earning mechanism will be fully locked. From that point onward, FC supply from Base Earning will be permanently capped, meaning no new FC will be issued through the standard mechanism, reinforcing FC as a highly scarce asset.

• Encouraging active contribution: As the Base Earning Rate decreases with network scale, users who want to maintain their expected accumulation rate must optimize other parts of the value distribution mechanism. This drives a shift in behavior from passive interaction to more active and meaningful participation.

In summary, reducing the Base Earning Rate does not weaken user incentives. Instead, it shifts user behavior from passive check-ins to active engagement, improving the overall quality and real value of the Unich Network.