5.2. Inflation Control through Set-Mining

POW+S maintains predictable inflation through the Set-Mining method for the first 5 years. This provides stable rewards to network participants and helps prevent extreme volatility in coin value.

The mechanism of gradually decreasing the annual mining volume enhances the scarcity of PEM coins in the long term and fosters expectations for value appreciation.

Additionally, after the first halving, a differentiated reward system based on the amount of coins staked by node operators will be implemented. This approach will control the circulation of PEM coins and encourage long-term holding by network participants.

The scalability of POW+S and the liquidity control mechanism of PEM coins work complementarily to support the stable growth of the ecosystem. Liquidity provision through token swaps expands the practical use cases of PEM coins, while Set-Mining and staking rewards manage inflation and encourage long-term holding. This ensures that POW+S can establish a sound economic structure with high scalability.