Bytes Tokenomics

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This diagram models a resource management and crafting system designed to simulate the process of citizens generating digital assets and assembling them into new entities within a virtual environment. At the core of this system is a continuous source of "bytes," which are distributed among three main types of digital asset pools: the Identity Byte Pool, the Item Byte Pool, and the Land Byte Pool. These bytes serve as the fundamental building blocks for creating digital identities, items, and land parcels through dedicated converters. Each converter—minting identities, items, and land—requires a specific amount of bytes as input to produce the respective digital asset.

The system is further sophisticated by the assembly process of creating new citizens, which involves combining one of each type of digital asset (identity, item, land) to craft a new citizen entity. This assembly process is managed by another converter that consumes one unit of each asset type to output a new citizen into the New Citizens pool. A utility gate plays a critical role in regulating the distribution of bytes to each asset pool according to predetermined percentages, ensuring a balanced allocation of resources required for sustaining the digital asset creation and citizen assembly operations. This mechanism showcases a model of digital economy where resources are circulated, transformed, and combined to create value in the form of virtual identities, assets, and communities.