NME Algorithm

nme.txt

Algorithm: NME

Inputs: 
    node_count, daily_operating_cost, operating_margin,
    total_revenue, flk_price, circulating_supply, discount_rate, stake,
    market_price, current_epoch, last_stake_change, optimal_ratio

Outputs: 
    flk_emissions, updated_stake, updated_operating_margin

Begin:
    // Calculate Emissions
    total_operating_expense = node_count * daily_operating_cost
    emissions_value_in_usd = total_operating_expense * (1 + operating_margin) - total_revenue
    flk_emissions = emissions_value_in_usd / flk_price

    // Update Supply and NPV
    circulating_supply += flk_emissions
    yearly_cash_flow = daily_operating_cost * 365 * node_count * operating_margin
    npv = yearly_cash_flow / discount_rate
    flk_npv_price = npv / circulating_supply

    // Adjust Operating Margins
    operating_margin = (npv < market_price) ? Increase operating_margin : Decrease operating_margin

    // Metrics Calculation
    participation_rate = (node_count * stake) / circulating_supply
    usage_to_node_ratio = total_revenue / node_count
    stake_evaluation_due = (current_epoch - last_stake_change) > 365

    high_participation = participation_rate > 0.5
    usage_to_node_high = usage_to_node_ratio > optimal_ratio

    // Decision Making
    IF high_participation AND usage_to_node_high THEN
        Increase operating_margin
    ELSE IF NOT high_participation THEN
        Increase operating_margin
        IF stake_evaluation_due ANDparticipation_rate < 0.3 THEN
            Decrease stake
        END IF
    ELSE IF high_participation AND NOT usage_to_node_high THEN
        Decrease operating_margin
        IF stake_evaluation_due AND participation_rate < 0.8 THEN
            Increase stake
        END IF
    ELSE IF usage_to_node_high THEN
        Increase operating_margin
        IF stake_evaluation_due AND participation_rate < 0.3 THEN
            Decrease stake
        END IF
    END IF

End