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Tokenomics v4

MIC / Kaizen Shards — Tokenomics v4.0 (C-151)

Cycle: C-151 | Status: Production | Last Updated: December 1, 2025

Overview

Mobius Systems uses a dual-denomination currency built for distributed integrity:

  • MIC (Mobius Integrity Credit) → Base unit of value
  • KS (Kaizen Shards) → Micro-denomination (1 MIC = 1,000,000 KS)

This system mirrors Bitcoin economics (BTC ↔ satoshi) while optimizing for: - Civic incentives - Micro-rewards - High-frequency integrity scoring - Ledger compression - Psychological reward feedback

1. Denomination Structure

1 MIC  = 1,000,000 Kaizen Shards (KS)
1 KS   = 0.000001 MIC

Precision

  • MIC has fixed 6-decimal precision
  • KS is the smallest indivisible unit

This provides: - Smooth reward curves - Micro-granularity - No dust spam - Perfect fit for reflections + citizen actions

2. Why 1,000,000 KS?

Bitcoin uses 100,000,000 sats per BTC, but this is optimized for monetary transfers.

Mobius is optimized for civic actions:

  • Most actions generate 0.01–0.80 MIC
  • Which converts cleanly into:
  • 10,000 – 800,000 KS
  • Humans psychologically prefer whole numbers
  • KS feels rewarding without being inflationary

Comparison Table

System Base Unit Subdivision Ratio
Bitcoin BTC satoshi 1:100,000,000
Ethereum ETH wei 1:10^18
Mobius MIC KS 1:1,000,000

3. Emissions (Minting)

MIC is minted only when:

MII (Mobius Integrity Index) ≥ 0.95

Core Formula

MIC_minted = α × max(0, MII - τ) × ShardValue × ReflectionQuality

Where: - α = 1.0 (base mint weight per cycle) - τ = 0.95 (integrity threshold) - ShardValue = 0.1 to 3.0 (based on shard type) - ReflectionQuality = 0.2 to 1.5 (based on EOMM evaluation)

Converted to KS

KS_minted = MIC_minted × 1,000,000

Shard Weights (from configs/kaizen_shards.yaml)

Shard Type Weight Description
reflection 1.0 Daily reflection completion
learning 1.0 Educational milestone
civic 1.5 Community contribution
stability 2.0 System stability actions
stewardship 2.0 Governance participation
innovation 2.5 Novel contributions
guardian 3.0 Security/integrity protection

4. Integrity Sink (Burn Model)

Mobius uses action-based burning:

  • Fraudulent attestations
  • Sentinel override penalties
  • Integrity Rule breaches
  • Drift correction events
  • Breaking recursive-policy gates

Burn Formula

Burn(KS) = β × SeverityScore × 1,000,000

Where β default = 0.05

5. Monetary Supply Curve

The supply grows only through behavioral negentropy, not mining hardware.

Key Characteristics

  • 📉 Low inflation — only integrity actions mint
  • 🔁 Naturally self-stabilizing — minting tied to MII
  • 🎚 Human + AI coordination — requires both
  • 🧘‍♂️ Resistant to speculation — no trading, only earning
  • 🌀 Balanced by burn sinks — penalties for violations

Supply Formula

Total_MIC = Σ(MIC_minted) - Σ(MIC_burned)

6. Ledger Encoding

All ledger entries store both representations:

{
  "mic": 0.420000,
  "ks": 420000,
  "actor_id": "CIVIC_001",
  "action": "reflection",
  "mii": 0.97,
  "timestamp": "2025-12-01T08:00:00.000Z"
}

Storage Rules

  • mic is stored as float with 6 decimal precision
  • ks is stored as integer (derived field)
  • Both must satisfy: ks == floor(mic * 1_000_000)

7. Example Rewards

Action MIC Reward KS Reward Notes
Daily Reflection 0.12 MIC 120,000 KS Base reflection reward
Citizen Shield Check 0.03 MIC 30,000 KS Weekly security audit
Successful PR (MCP ≥ 0.95) 1.0 MIC 1,000,000 KS Code contribution
Sentinel Approval 0.50 MIC 500,000 KS Governance participation
Civic Act / Mentorship 0.20 MIC 200,000 KS Community teaching
Guardian Action 0.75 MIC 750,000 KS Security protection

8. Economic Properties

Anti-Inflation Mechanics

  1. Threshold Gate: No minting below MII 0.95
  2. Burn Sinks: Violations reduce supply
  3. Cap Limits: Per-cycle caps prevent abuse
  4. Quality Multipliers: Low-quality actions earn less

Value Proposition

MIC derives value from: - Scarcity: Only integrity actions mint - Utility: Unlocks governance, features, rewards - Network Effect: More participants = more value - Trust: Backed by verifiable integrity proofs

9. Governance Integration

MIC in Governance

  • Voting Weight: MIC balance influences proposal voting
  • Proposal Threshold: Minimum MIC required to submit proposals
  • Sentinel Rewards: Sentinels earn MIC for accurate judgments
  • Dispute Resolution: MIC staking for dispute arbitration

Policy Thresholds

Action MIC Required
Submit Proposal 10 MIC
Vote on Proposal 0.1 MIC
Sentinel Candidacy 100 MIC
Dispute Arbitration 5 MIC stake

10. Implementation Constants

// Core Constants
export const KS_PER_MIC = 1_000_000;
export const MII_THRESHOLD = 0.95;
export const MINT_COEFFICIENT = 1.0;
export const BURN_COEFFICIENT = 0.05;

// Precision
export const MIC_DECIMALS = 6;
export const KS_DECIMALS = 0; // Integer only

// Caps
export const MAX_MIC_PER_CYCLE = 10.0;
export const MAX_KS_PER_CYCLE = 10_000_000;

Conclusion

MIC provides scarcity + economic stability. KS provides granularity + reward resonance.

Combined, they create the world's first integrity-backed monetary system.

"We heal as we walk." — Mobius Principle

Cycle C-151 | MIC/KS v4.0 | Mobius Systems