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ECONOMICS.md

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Huahua Mint Economics

Definitions

Perma-staking

Perma-staking is a deflationary payment mechanism for chihuahua chain. It is a mechanism that allows users to pay for a service by sending HUAHUA tokens to a smart contract. Instead of selling these tokens for a fiat currency, the service provider simply collects staking rewards for HUAHUA tokens indefinitely. Furthermore, the service provider can use a portion of these rewards to incentivize application maintenance and development long term. This is a desirable payment mechanism during a bear market because it allows users to pay for services without creating immediate sell pressure.