At Meta Earth, we are committed to ensuring long-term value growth through a carefully designed economic model. However, recently, some users have raised this question:

According to the MEC economic model, the first year of mining should yield 5 billion MEC. However, from the launch of the genesis block on April 17, 2024, to now (nearly 11 months), the current market circulation is less than 600,000 MEC. Is this stark contrast a flaw in economic design or a meticulously planned long-term value strategy?

This article will explore the economic principles behind this phenomenon from three aspects: MEC’s issuance rules, circulation logic, and ecosystem incentives.

MEC Issuance Rules

Fixed Total Supply, Fair Distribution

The total issuance of MEC is capped at 20 billion, a figure that is fixed and will not increase based on market supply and demand.

10 billion permanently locked:

This portion of MEC corresponds one-to-one with the global population. Whenever a new ME ID user is added, Meta Earth grants that user 1 MEC.

However, this MEC is non-tradable and will not enter the market. Instead, it is used for daily staking rewards as a UBI (Universal Basic Income) provided to users by Meta Earth.

10 billion for staking mining:

The remaining 10 billion MEC will be distributed through staking mining. According to the economic model, 5 billion MEC is planned for release in the first year, decreasing by 50% annually thereafter (e.g., 2.5 billion in the second year, 1.25 billion in the third year, and so on).

In theory, if all 5 billion MEC were to enter the market in the first year, it would create significant selling pressure, impacting price stability. However, the actual circulation is far below expectations, which reflects a more sophisticated economic logic.

Output ≠ Circulation

Although MEC output is entirely dependent on staking mining, its actual circulation is much lower than the theoretical output. This is primarily due to the following reasons:

Core Mechanisms That Restrict Circulation

Only ME ID holders or MEC holders can participate in mining:

Only users with an ME ID or holding MEC can engage in staking mining. For users who have not registered an ME ID, the MEC they would have mined is directly deposited into the Meta Earth Global Network Treasury and does not immediately enter the market.

ME ID user base is still in its early stages:
Since the launch of the genesis block, the total number of ME ID users has exceeded 420,000. However, compared to the target of 10 billion global users, this is still in its early stages. Thus, most of the MEC mined in the first year remains unactivated and is stored in the Meta Earth Global Network Treasury.

Connection Between MEC Circulation and Ecosystem Incentives
Although the actual circulation of MEC is far below its production, users can still acquire MEC and participate in platform development through a range of carefully designed ecosystem incentive mechanisms. The main ways to earn MEC include:

1. ME ID Basic Staking Rewards

Each ME ID holder receives 1 permanently staked MEC for free.

Staking yield: 25% annually, i.e., 0.25 MEC additional rewards per year.

2. Check-in Rewards and Monthly Bonuses

Monthly Bonus: During the beta phase, ME ID users can claim 0.1 MEC per month.

Check-in Rewards: During the beta phase, users who check in for 25 days in a month can earn an additional 0.1 MEC.

Annual Yield: 2.4 MEC per user.

3. Fixed-Term Savings (360-Day Lockup)

Users participating in MEC fixed-term savings can earn an annualized return of 50%.

4. Referral Rewards

For every new user successfully invited and completing KYC, the referrer earns 0.1 MEC.

There is no cap on referral rewards—the. The more invitations, the higher the earnings.

5. On-Chain Community Rewards

New users entering an on-chain node community for the first time can earn 0.01 MEC as a reward.

6. Node Incentive Program

Participating in Meta Earth’s node community incentive program earns additional MEC rewards.

7. Official Event Airdrops

Users participating in official events can receive MEC rewards.

All the MEC rewards earned through the above methods are freely tradable, forming a key factor in MEC’s current circulation. We previously estimated the first-year circulation of MEC. For details, check out:

MEC's Long-Term Value Strategy

MEC's economic model achieves a delicate balance between high output and low circulation. While 5 billion MEC is theoretically produced in the first year, due to:

• A large portion of MEC being deposited into the Meta Earth Global Network Treasury,

• The ME ID user base has not yet reached its full potential,

• Staking and incentive mechanisms restricting market circulation,

The current market circulation remains below 600,000 MEC.

This strategy ensures fairness in the early stages of the ecosystem, avoids excessive short-term market selling pressure, and reserves sufficient liquidity for future ecosystem growth.

As the Meta Earth ecosystem continues to develop, we believe MEC’s long-term value will gradually be realized, allowing every ME ID user to share in the dividends of Meta Earth’s growth.

If you want to receive more airdrops or rewards, please download the ME Pass and complete advanced verification. See more on the poster!

About Meta Earth

Meta Earth (ME) is based on a modular, high-performance, infinitely scalable multi-dimensional fusion underlying value network — ME Network, which supports the high-concurrency big data processing needs of traditional industrial applications.And through an encrypted DID (Decentralized Identifier) system — ME ID & ME Pass which can effectively protect user privacy data, and a co-construction & co-governance mechanism which can fully reflect personal sovereignty and equality for all, as well as an economic model which can guarantee UBI (Unconditional Basic Income) without any distinction, Meta Earth is fully dedicated to enhancing happiness for a better life and maintaining ecological balance to promotesustainability.

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