Harmony updates the token economic model and will launch a public mortgage economic model

Harmony co-founder Nick White detailed the Harmony’s new economic model. The new model will launch an open mortgage model, maintaining an equivalent issuance of 441 million tokens per year, and finally achieving 0 additional issuances through destruction fees. In the first year of implementing this model, in order to stimulate the mortgage rate, when the initial mortgage rate is 5% of the supply, the yield will be as high as 164%, and once the mortgage rate reaches 95% of the supply, the interest rate will fall to 9%. Nick White said that Harmony had updated its network economy model before the launch of Open Staking. In this new model, the total return (issue rewards and transaction costs) of the entire network will remain the same regardless of the average block time and mortgage ratio. The goal of this change is to achieve a higher mortgage ratio, simplify the model, and create a path to 0 additional issuances.