The ZenMaster contract is designed to emit new CHARM tokens at a rate of 6.14 per block. These tokens are distributed in line with the distribution profiles set out below. Any emissions above the required distribution rate are automatically routed to the Burn Pool (PID- 14).
Target CHARM Circulating Supply
As a result of the inherent contract configuration, 25% of all emissions are automatically routed to PID-0, the Karma rewards pool. This has created the challenge of how to reduce the emissions to PID-0 in line with the overall reduction in emissions. The method that has been adopted to overcome this is:
- 1.All excess emissions are automatically routed to the Burn Pool, PID-14.
- 2.75% of these burn emissions are regularly burned by sending to 0Xdead as CHARM
- 3.25% of the burn emissions are used to buy KARMA and then this KARMA is burned to 0Xdead
As the KARMA is now no longer available to redeem the underlying CHARM, this process has the effect of not only removing the CHARM that is used to buy the KARMA from circulation but it also locks away any future rewards that this same CHARM would have received. This in effect permanently locks up more and more of the CHARM emissions that are being sent to the KARMA pool.
Whilst this process ensures that the CHARM circulating supply is reduced over time it does mean that some reporting outlets do not correctly report the actual circulating supply as they do not subtract the element that has been burned as KARMA.