NetFlowCoin Economic Model 2.0

5 min readSep 17, 2021


1 Dual token model

NetFlowCoin uses a dual token model: FUL and NFC.

1.1 What is FUL

As a network base fee of SDN / SDVN, the price of FUL anchors dollars. Its value is linked to the flow generated by data services, and the flow transformation of real service digitization is completed through the “service → FUL → flow → NFC” model. FUL can only be converted from the NFC chain, and as a token bound to the address, but the transaction between addresses is not allowed.

1.2 What is NFC

NFC is NetFlowCoin’s native token with constant issued number, never increasing, and can only be produced by block mining or traffic mining. The operation of the entire live chain requires NFC as a unique fuel, and projects and users can be tightly coupled to the community of interests through NFC. At the same time, NFC is also a digital equity credential, representing a symbol of certain power, value, and the holders of NFC will have the right to participate in the candidate of the witness node. NFC is the carrier of value and power circulation in the public chain system. On the other hand, due to the existence of cryptography in the block-chain world, NFC has new features of strong privacy and tamper proof.

1.3 Relationship between NFC and FUL

Simple relationship: FUL → flow → NFC → FUL

The NFC is converted to FUL, which is used to pay the network fee of SDN / SDVN and to generate flow. And the flow rate is subsequently generated by the POF consensus, showing the real world into digital assets on the chain in the form of flow, FUL and NFC form a clever circular transformation.

The more users of SDN / SDVN, the more demand of FUL, wich will increase the value of NFC and develop more participants of NetFlowCoin.

2 NFC Allocation scheme

The total NFC is 2.1 billion, never be issued again.

NFC token allocation ratio:

5% (105 million): Foundation, used for long-term network governance, partner support, academic subsidies, public works, community construction, etc.

10% (210 million): investors, used to fund network development, business development, partnerships, etc., released linearly of 6 months to 3 years based on investment conditions.

15% (315 million): Project team, used for research development, deployment and maintenance, business development, marketing, etc. After locked up for 1 year, it would be released linearly of 6 years.

5% ($ 105 million): block mining, after the income is frozen for 30 days, it will be released linearly in 180 days.

Traffic mining (high quality bandwidth reward), after the income is frozen for 30 days, it will be released linearly in 180 days.

55% (1155 million): flow mining (dynamic traffic reward), after the income is frozen for 30 days, it will be released linearly in 180 days.

3 Attenuation model and release mode of Token casting

In NetFlowCoin, the producer can cast tokens (ie. rewards) in block, flow, and bandwidth, each with attenuation model.

3.1 Block casting attenuation model

The block generation right is controlled by the witness node, which is elected from the candidate nodes through POS consensus in each round.

The block generation reward is based on the time-based attenuation model, and the block cycle is 10 seconds and its issue halved every 6 years. The block formula is:

l n≥1,each after 1 year,n+1

the total issued number of NFC awarded by block of the n th year

is the total number of block rewards, ie. 105 million

If a node wants to become a witness node, it needs to pledge a certain number of NFC first, and it belongs to the top 21 of the total number of pledge nodes after asset weighting, that is, in the block generation. Meanwhile, in order to ensure the normal operation of the block-chain, the witness node needs to bear certain responsibilities. When the node fails to block as required or destroys the stability of the block-chain, the system will implement punishment measures according to some related rules.

3.2 Flow casting attenuation model

In the token casting based on dynamic flow, when the accumulative effective flow of the whole network reaches 44.389 EB, the output will be halved, and when the accumulative effective flow of the whole network increases by 1 EB, the conversion of flow to NFC will decay once, and the corresponding flow value conversion (flow and NFC exchange ratio) will be increased.

The flow casting half attenuation formula is:

l n≥1,all net effective flow per increase 1 EB,n+1

is the total issued NFC awarded by flow of the nth EB

is the total number of flow rewards, 1.155 billion

3.3 Bandwidth casting attenuation model

In the pass casting based on static high-quality bandwidth, the issuance is halved every 6 years, and the award window is issued every 24 hours. Each award is evenly distributed according to the proportion of the bandwidth provided by the node in the total high-quality bandwidth of the whole network.

Bandwidth casting half attenuation formula is:

l n≥1,after every year,n+1

is the total amount of bandwidth incentive token NFC issued in the nth year

is the total bandwidth rewards, that is, 210 million

3.4 Token reward release method

In order to protect the project ecology and the whole network node stability, which may be destroyed by the suddenly leaving of early profitable users, therefore for all users involved in the casting, the rewards obtained will be subject to the policy of locking the position for 30 days and then 180 days.

4 Deflation model

Output deflation

Like other block-chain projects, the issuance of NFC follows a predetermined and controlled supply model, and the production of token decreases over time, with natural anti-inflation;

NFC → FUL conversion deflation

In the circular supply and demand mode of NFC and FUL, casting NFC must be with the help of the SDN / SDVN flow promoted by FUL, while FUL can only be converted from NFC, and the converted NFC will be destroyed, which means that casting new NFC needs to destroy the old NFC. With the development of SDN / SDVN ecology and the increase of users, the demand for FUL will continue to increase, and the destruction of converted NFC will also continue to increase.




NetFlowCoin is a web 3.0 network that enables decentralized communication, storing, and sharing.