Tokenomics

Supply Model

BCO has an elastic supply with no pre-determined cap. Supply is driven entirely by verified forest land:

Property	Value
Initial supply	0
Pre-mine	None
Max supply	No hard cap (bounded by verifiable forest area)
Decimals	18
Minting trigger	Forest deed registration
Burning trigger	Forest deed deactivation

Supply grows when new forest land is verified and registered. Supply contracts when deeds are deactivated. There is no mechanism to mint BCO without a corresponding forest deed.

Token Flow

Forest Deed Verified
       │
       ▼
  registerDeed()          ┌──────────────┐
  Mint BCO ──────────────►│   Treasury   │
  (1 m² = 1 BCO)         └──────┬───────┘
                                 │
                    ┌────────────┼────────────┐
                    │            │            │
                    ▼            ▼            ▼
              ┌──────────┐ ┌──────────┐ ┌──────────┐
              │  Market   │ │ Staking  │ │Operations│
              │  (DEX)    │ │ Rewards  │ │          │
              └──────────┘ └──────────┘ └──────────┘
                    │
                    ▼
              Deed Deactivation
              Company buys BCO from market
              deactivateDeed() burns BCO

Step by Step

1. Mint — Forest deed is registered, BCO is minted to treasury (1 m² = 1 BCO)
2. Distribution — Treasury distributes BCO to market, staking rewards, or operations
3. Circulation — BCO trades freely on DEXs; holders can stake for rewards
4. Buyback — To deactivate a deed, the company must buy BCO from the open market
5. Burn — deactivateDeed() burns the purchased BCO, reducing supply

Demand Drivers

Driver	Mechanism
Forest backing	Each BCO represents 1 m² of verified forest — tangible, verifiable backing
Buyback pressure	Deed deactivation requires market purchase, creating demand
Staking rewards	Holders earn yield by staking BCO
On-chain verification	verifyInvariant() provides trustless proof of backing
Scarcity	Supply is bounded by real-world forest area, not arbitrary caps

Staking Economics

BCO staking uses the Synthetix StakingRewards model with finite reward periods:

rewardRate = rewardAmount / rewardDuration

Parameter	Description
Reward source	Pre-funded pool (no new token emission)
Reward period	Finite (default: 90 days)
Distribution	Proportional to staked share
Claim model	Pull — stakers claim explicitly
Period end	Rewards stop automatically

There is no infinite mint for staking. Rewards come exclusively from tokens deposited into the staking contract by the reward manager. When the reward period ends, distribution stops. This preserves the supply invariant.

Example

Reward pool:   100,000 BCO over 90 days
Total staked:  1,000,000 BCO

Daily rate:    ~1,111 BCO/day distributed across all stakers
APY:           ~4.1% (varies with total staked amount)

APY is not fixed — it changes as stakers enter and exit the pool.

Supply Dynamics

Event	Supply	Area	Price Pressure
Register deed (5,000 m²)	+5,000 BCO	+5,000 m²	Neutral (minted to treasury)
Deactivate deed (5,000 m²)	-5,000 BCO	-5,000 m²	Positive (buyback from market)
Stake BCO	No change	No change	Reduces circulating supply
Unstake BCO	No change	No change	Increases circulating supply
Staking reward claim	No change	No change	Neutral (from pre-funded pool)

No Inflationary Mechanisms

BCO has no:

• Block rewards or emissions schedule
• Inflationary staking rewards (rewards come from a finite pool)
• Team vesting unlocks that inflate supply
• Governance token farming

Every BCO in existence is backed by a registered, verified forest deed. The invariant is enforced at the smart contract level and cannot be circumvented.