# VS Minting Mechanism

Vision has a complete inflation and deflation mechanism. The pledge rate is calculated during each maintenance cycle. At the end of the business cycle, the average PledgeRateInEconomyCycle of all maintenance cycles in the business cycle is calculated.

When averagePledgeRateInEconomyCycle exceeds 60%, the inflation rate is 23.22%

When averagePledgeRateInEconomyCycle is lower than 60%, the inflation rate is 6.89%

## Economy Cycle

The economy cycle will count the average pledge rate of the maintenance cycle to get the inflation rate of the next economy cycle. The first economy cycle = 42 maintenance cycles, and each subsequent economy cycle = 120 x maintenance cycle.

## Pledge Rate

Vision Network pledge rate is calculated during each maintenance cycle

Staking rate calculation formula: Pledge Rate = all the pledge amount of the whole network (entropy + Photon + FVGurantee) / whole network liquidity (block reward + voting reward + communityVoting reward + initial amount of Galaxy account-Galaxy's balance + Avalon account Initial amount-Avalon's balance + PrivateSale Initial Account Amount - PrivateSale Balance + Team Initial Account Amount - Team Balance + DAO Initial Account Amount - DAO Balance + Dev Initial Account Amount - Dev Balance + Promotion Initial Account Amount - Promotion Balance )

## Inflation Rate

Vision’s inflation rate is set to a high value and a low value, respectively 23.22% and 6.89%, which can be revised through proposals later. Inflation rate will affect the calculation of rewards throughout the network.

Inflation Rate Impact

1. Block Reward
For example, Vision’s initial block production reward is 120,000 VDT. If the current economic cycle inflation rate is 23.22%, the block production reward will be dynamically adjusted to 120,000 VDT x (23.22% / 12 + 1) = 122,322 VDT

2. Voting Rewards
For example, the initial voting reward of Vision is 600,000 VDT. If the current economic cycle inflation rate is 6.89%, the voting reward will be dynamically adjusted to 600,000 VDT x (6.89% / 12 + 1) = 603,445 VDT

3. CommunityVoting Rewards
For example, the initial voting reward for Vision is 130,000 VDT. If the current economic cycle inflation rate is 6.89%, the CommunityVoting reward will be dynamically adjusted to 130,000 VDT x (6.89% / 12 + 1) = 130,746 VDT