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Update economics.md #388

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Jul 3, 2024
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Update economics.md #388

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4 changes: 2 additions & 2 deletions website/docs/tech-explanation/economics.md
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Expand Up @@ -35,7 +35,7 @@ When users store data on Nervos, they incur a small State Rent fee based on the

During data storage, a portion of CKBytes must be locked and cannot earn interest. Although the locked CKBytes remain constant in number, their value slowly decreases due to inflation, affecting only users storing data on Nervos. This small depreciation constitutes State Rent.

The inflation funding State Rent comes from a process known as Secondary Issuance. Nervos users who do not occupy space on the network may gain interest from Secondary Issuance by locking their CKBytes in Nervos DAO. The following sections will delve deeper into this mechanism.
The inflation funding State Rent comes from a process known as Secondary Issuance. Nervos users who do not occupy space on the network may gain rewards from Secondary Issuance by locking their CKBytes in Nervos DAO. The following sections will delve deeper into this mechanism.

## Base Issuance

Expand All @@ -55,7 +55,7 @@ Unlike Base Issuance, Secondary Issuance only targets at users occupying Nervos

## Nervos DAO

CKBytes holders can earn interest by locking tokens in Nervos DAO, similar to staking. Interest accrues proportionally to Secondary Issuance, offsetting the long-term inflationary effects of the latter, thus maintaining value. Users occupying space in Nervos have their CKBytes locked, making them ineligible to be placed in Nervos DAO. Once the space-occupying Cells are consumed and the CKBytes are released, they can be placed in Nervos DAO. This mechanism incentivizes the removal of unnecessary data, ensuring long-term manageability of the blockchain.
CKBytes holders can earn rewards by locking tokens in Nervos DAO. Rewards accrues proportionally to Secondary Issuance, offsetting the long-term inflationary effects of the latter, thus maintaining value. Users occupying space in Nervos have their CKBytes locked, making them ineligible to be placed in Nervos DAO. Once the space-occupying Cells are consumed and the CKBytes are released, they can be placed in Nervos DAO. This mechanism incentivizes the removal of unnecessary data, ensuring long-term manageability of the blockchain.

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